POS 8C 1 v473427_pos8c.htm POS 8C

As filed with the Securities and Exchange Commission on August 23, 2017

Securities Act File No. 333-212436

 

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



 

FORM N-2



 

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
x
(Check appropriate box or boxes)
Pre-Effective Amendment No.  
Post-Effective Amendment No. 4



 

NEWTEK BUSINESS SERVICES CORP.

(Exact name of Registrant as specified in charter)



 

1981 Marcus Avenue, Suite 130
Lake Success, NY 11042

(Address of Principal Executive Offices)



 

Registrant’s telephone number, including Area Code: (212) 356-9500
Barry Sloane
Chief Executive Officer and President
Newtek Business Services Corp.
1981 Marcus Avenue, Suite 130
Lake Success, NY 11042

(Name and address of agent for service)



 

COPIES TO:
Steven B. Boehm
Cynthia M. Krus
Eversheds Sutherland (US) LLP
700 Sixth Street NW, Suite 700
Washington, DC 20001
(202) 383-0100
Fax: (202) 637-3593



 

Approximate date of proposed public offering: From time to time after the effective date of this Registration Statement.

If any securities being registered on this form will be offered on a delayed or continuous basis in reliance on Rule 415 under the Securities Act of 1933, other than securities offered in connection with a dividend reinvestment plan, check the following box. x

It is proposed that this filing will become effective (check appropriate box):

x when declared effective pursuant to section 8(c).



 

CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933

       
Title of Security Being Registered   Amount Being
Registered
  Proposed Maximum
Offer Price Per Note
  Proposed Maximum
Aggregate Offer Price(1)
  Amount of
Registration Fee(1)(7)
Common Stock, $0.02 par value per share(2)(3)                                    
Preferred Stock, $0.02 par value per share(2)                                    
Subscription Rights(2)                                    
Warrants(4)                                    
Debt Securities(5)                              
Total               $ 300,000,000 (6)    $ 30,210  

(1) Estimated pursuant to Rule 457(o) under the Securities Act of 1933 solely for the purpose of determining the registration fee. The proposed maximum offering price per security will be determined, from time to time, by Newtek Business Services Corp. (the “Registrant”) in connection with the sale of the securities registered under this Registration Statement.
(2) Subject to note 6 below, there is being registered hereunder an indeterminate number of shares of common stock or preferred stock, or subscription rights to purchase shares of the Registrant’s common stock as may be sold, from time to time.
(3) Includes such indeterminate number of shares of the Registrant’s common stock as may, from time to time, be issued upon conversion or exchange of other securities registered hereunder, to the extent any such securities are, by their terms, convertible or exchangeable for common stock.
(4) Subject to note 6 below, there is being registered hereunder an indeterminate number of the Registrant’s warrants as may be sold, from time to time, representing rights to purchase common stock, preferred stock or debt securities of the Registrant.
(5) Subject to note 6 below, there is being registered hereunder an indeterminate number of debt securities of the Registrant as may be sold, from time to time. If any debt securities of the Registrant are issued at an original issue discount, then the offering price shall be in such greater principal amount as shall result in an aggregate price to investors not to exceed $300,000,000.
(6) In no event will the aggregate offering price of all securities issued from time to time pursuant to this Registration Statement exceed $300,000,000.
(7) Previously paid.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

 


 
 

TABLE OF CONTENTS

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED AUGUST 23, 2017

PRELIMINARY PROSPECTUS

[GRAPHIC MISSING]

Newtek Business Services Corp.

$300,000,000
Common Stock
Preferred Stock
Subscription Rights
Warrants
Debt Securities



 

This prospectus relates to the offer, from time to time, in one or more offerings or series, of up to $300,000,000 of common stock, preferred stock, subscription rights to purchase shares of common stock, warrants or debt securities, which we refer to, collectively, as the “securities”. There are $258,082,225 of securities available for issuance under this prospectus as a result of our issuance of $41,917,775 in aggregate principal amount of shares of our common stock, par value $0.02 per share, since January 2017. The preferred stock, subscription rights, warrants and debt securities offered hereby may be convertible or exchangeable into shares of common stock. The securities may be offered at prices and on terms to be described in one or more supplements to this prospectus.

In the event we offer common stock, the offering price per share of our common stock less any underwriting discounts or commissions will generally not be less than the net asset value per share of our common stock at the time we make the offering. However, we may issue shares of our common stock pursuant to this prospectus at a price per share that is less than our net asset value per share (i) in connection with a rights offering to our existing stockholders, (ii) with the prior approval of the majority of our common stockholders or (iii) under such other circumstances as the Securities and Exchange Commission may permit.

We may sell our common stock through underwriters or dealers, “at-the-market” to or through a market maker into an existing trading market or otherwise directly to one or more purchasers or through agents or through a combination of methods of sale. Each prospectus supplement relating to an offering will identify any agents or underwriters involved in the sale of the securities, and will disclose any applicable purchase price, fee, discount or commissions arrangement between us and our agents or underwriters or among our underwriters or the basis upon which such amount may be calculated. See “Plan of Distribution”. We may not sell any of the securities through agents, underwriters or dealers without delivery of this prospectus and a prospectus supplement describing the method and terms of the offering of such securities.

Newtek Business Services Corp. is an internally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Along with its wholly owned subsidiary and controlled portfolio companies, Newtek provides a wide range of business services and financial products under the Newtek® brand to the small- and medium-sized business market. Newtek’s products and services include: Business Lending, including SBA 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), IT Consulting, eCommerce, Accounts Receivable and Inventory Financing, Insurance Solutions, Web and Ecommerce Solutions, Data Backup, Storage and Retrieval, and Payroll and Benefit Solutions.

Our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance platform and our equity investments in certain portfolio companies that we control.

Our common shares are currently traded on the Nasdaq Global Market under the symbol “NEWT.” As of August 21, 2017, the last reported closing price of our common shares on the Nasdaq Global Market was $17.15, which is a 19% premium to our net asset value of $14.36 as of June 30, 2017.



 

An investment in our securities is subject to risks and involves a heightened risk of total loss of investment. In addition, the companies in which we invest are subject to special risks. Shares of closed-end investment companies, including business development companies, frequently trade at a discount to their net asset value. If our shares trade at a discount to our net asset value, it may increase the risk of loss for purchasers in this offering. In addition, the companies in which we invest are subject to their own risks. See “Risk Factors” beginning on page 23 to read about factors you should consider, including the risk of leverage, before investing in our securities.

Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

This prospectus may not be used to consummate sales of our securities unless accompanied by a prospectus supplement.



 

Please read this prospectus and any accompanying prospectus supplements before investing and keep each for future reference. This prospectus and any accompanying prospectus supplements contain important information about us that a prospective investor ought to know before investing in our securities. We file annual, quarterly and current reports, proxy statements and other information about us with the Securities and Exchange Commission (“SEC”). This information is available free of charge by contacting us by mail at 1981 Marcus Avenue, Suite 130, Lake Success, New York 11042, by telephone at (212) 356-9500 or on our website at http://www.NewtekOne.com. The SEC also maintains a website at http://www.sec.gov that contains such information. Information contained on our website or on the SEC’s web site about us is not incorporated into this prospectus and you should not consider information contained on our website or on the SEC’s website to be part of this prospectus.

The date of this prospectus is           , 2017.


 
 

TABLE OF CONTENTS

You should rely only on the information contained in this prospectus and any accompanying prospectus supplement. We have not authorized any dealer, salesman or other person to give any information or to make any representation other than those contained in this prospectus or any prospectus supplement to this prospectus. You must not rely upon any information or representation not contained in this prospectus or any such supplements as if we had authorized it. This prospectus and any such supplements do not constitute an offer to sell or a solicitation of any offer to buy any security other than the registered securities to which they relate, nor do they constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. The information contained in this prospectus and any such supplements is accurate as of the dates on their covers. Our business, financial condition, results of operations and prospects may have changed since then.

 
  Page
About this Prospectus     1  
The Offering     8  
Fees and Expenses     17  
Selected Consolidated Financial and Other Data     19  
Financial Highlights     21  
Risk Factors     23  
Cautionary Statement Regarding Forward-Looking Statements and Projections     56  
Use of Proceeds     57  
Price Range of Common Stock and Distributions     58  
Ratio of Earnings to Fixed Charges     61  
Management’s Discussion and Analysis of Financial Condition and Results of Operation     62  
Senior Securities     92  
Business     95  
Portfolio Companies     124  
Management     202  
Executive Compensation     211  
Certain Relationships and Transactions     224  
Sales of Common Stock Below Net Asset Value     225  
Security Ownership of Certain Beneficial Owners and Management     230  
Regulation     231  
Determination of Net Asset Value     238  
Dividend Reinvestment Plan     240  
Material U.S. Federal Income Tax Considerations     241  
Description of Our Capital Stock     249  
Description of Our Preferred Sock     256  
Description of Subscription Rights     257  
Description of Our Warrants     259  
Description of Our Debt Securities     260  
Plan of Distribution     273  
Brokerage Allocation and Other Practices     275  
Custodian Transfer and Distribution Paying Agent and Registrar     275  
Legal Matters     275  
Independent Registered Public Accounting Firm     275  
Available Information     275  
Index to Financial Statements     F-1  

i


 
 

TABLE OF CONTENTS

ABOUT THIS PROSPECTUS

This prospectus and any accompanying prospectus supplement is part of a registration statement that we have filed with the Securities and Exchange Commission (“SEC”), using the “shelf” registration process. Under the shelf registration process, which constitutes a delayed offering in reliance on Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”), the Company may offer, from time to time, in one or more offerings, up to $300,000,000 of common stock, preferred stock, subscription rights to purchase shares of common stock, warrants or debt securities, on terms to be determined at the time of the offering. We may sell our securities through underwriters or dealers, “at-the-market” to or through a market maker, into an existing trading market or otherwise directly to one or more purchasers or through agents or through a combination of methods of sale. The identities of such underwriters, dealers, market makers or agents, as the case may be, will be described in one or more supplements to this prospectus. The securities may be offered at prices and on terms described in one or more supplements to this prospectus. This prospectus and any accompanying prospectus supplement provides you with a general description of the securities that we may offer. Each time we use this prospectus to offer securities, we will provide a prospectus supplement that will contain specific information about the terms of that offering. A prospectus supplement may also add, update or change information contained in this prospectus.

Please carefully read this prospectus and any such supplements together with any exhibits and the additional information described under “Available Information” and in the “Prospectus Summary” and “Risk Factors” sections before you make an investment decision.

1


 
 

TABLE OF CONTENTS

PROSPECTUS SUMMARY

The following summary contains basic information about offerings pursuant to this prospectus. It may not contain all the information that is important to you. For a more complete understanding of offerings pursuant to this prospectus, we encourage you to read this entire prospectus and the documents to which we have referred in this prospectus, together with any accompanying prospectus supplements, including the risks set forth under the caption “Risk Factors” in this prospectus and any accompanying prospectus supplement and the information set forth under the caption “Available Information” in this prospectus. Throughout this prospectus, we refer to Newtek Business Services Corp., its consolidated subsidiaries and its predecessor, Newtek Business Services, Inc., as the “Company,” “we,” “us,” “our,” and “Newtek.”

Our Business

We are an internally managed non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. Additionally, we have elected to be treated as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) for U.S. federal income tax purposes, beginning with our 2015 tax year. Our investment activities are managed by our executive officers and supervised by our board of directors (the “Board”).

Our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance platform and our equity investments in certain portfolio companies that we control. We currently are the largest non-bank financial institution licensed by the U.S. Small Business Administration (“SBA”) under the federal Section 7(a) loan program (“SBA 7(a) Loans”) based on dollar lending volume. We generally structure our loans so that we can both sell the government guaranteed portions of loans and securitize the unguaranteed portions. This structure generally allows us to recover our capital and earn excess capital on each loan, typically within a year. We may in the future determine to retain the government guaranteed or unguaranteed portions of loans pending deployment of excess capital. Additionally, we and our controlled portfolio companies provide a wide range of business and financial solutions to small- and medium-sized business (“SMB”) accounts, including electronic payment processing, managed technology solutions (cloud computing), e-commerce, accounts receivable and inventory financing, The Secure Gateway, personal and commercial insurance services, web services, data backup, storage and retrieval and payroll and benefits solutions. We support the operations of our controlled portfolio companies by providing access to our proprietary and patented technology platform, including NewTracker®, our patented prospect management software.

We define SMBs as companies having revenues of $1.0 million to $100.0 million, and we estimate the SMB market to be over 27 million businesses in the U.S. While our primary investments include making loans and providing business solutions to the SMB market through our controlled portfolio companies, we also may make opportunistic investments in larger or smaller companies. We expect to generate returns through a combination of realized gains on the sale of the government guaranteed portions of SBA 7(a) loans, contractual interest payments on debt investments, dividends from our controlled portfolio companies, equity appreciation (through direct investment in our controlled portfolio companies), servicing income and other income. We can offer no assurance that we will achieve our investment objective.

Organizational Overview

On November 12, 2014, our predecessor, Newtek Business Services, Inc. (“Newtek NY”), merged with and into Newtek Business Services Corp. for the purpose of reincorporating the Company in the state of Maryland. Newtek Business Services Corp. had previously elected to be regulated as a BDC under the 1940 Act on October 1, 2013 (the “BDC Conversion”). In addition, on October 22, 2014, we effectuated a 1 for 5 reverse stock split (the “Reverse Stock Split”) to attract institutional investors. As a result of the BDC Conversion, Newtek NY ceased to exist and the Company succeeded to Newtek NY’s operations as the sole surviving entity.

The Company is a Maryland corporation that is an internally managed, non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. As a BDC, we are required to meet regulatory tests, including the requirement to invest at least 70% of our

2


 
 

TABLE OF CONTENTS

gross assets in “qualifying assets.” Qualifying assets generally include securities of private or thinly traded U.S. companies and cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. See “Regulation” in this prospectus. In addition, we have elected to be treated for U.S. federal income tax purposes, and intend to qualify annually thereafter, as a RIC under the Code. See “Material U.S. Federal Income Tax Considerations” in this prospectus.

Set forth below is a diagram of our current organizational structure:

[GRAPHIC MISSING]

(1) Consolidated subsidiary that is part of the Company’s business finance platform, and operates as a nationally licensed SBA lender under the federal Section 7(a) program with preferred lender program status.
(2) Consists of indirect and direct SBA 7(a) Loans to small businesses.
(3) Wholly-owned portfolio company that is part of the Company’s business finance platform. Provides receivables and inventory financing, management services, and managerial assistance to SMBs and originates loans under the SBA 504 loan program.
(4) Wholly-owned portfolio company that markets credit and debit card processing services, check approval services, processing equipment, and software.
(5) Wholly-owned 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 services.
(6) Wholly-owned portfolio company that is part of the Company’s business finance platform. Provides third-party loan services for SBA and non-SBA loans.
(7) Wholly-owned portfolio company that markets credit and debit card processing services, check approval services, processing equipment, and software.
(8) Includes: (i) Newtek Insurance Agency, LLC, a wholly-owned portfolio company which is a retail and wholesale brokerage insurance agency specializing in the sale of commercial and health/benefits lines insurance products to the SMB market as well as various personal lines of insurance. It is licensed in all 50 states; (ii) PMTWorks Payroll, LLC d/b/a Newtek Payroll and Benefits Solutions, a wholly-owned portfolio company which offers an array of industry standard and competitively priced payroll management, payment and tax reporting services to SMBs; (iii) ADR Partners, LLC d/b/a banc-serv Partners, LLC, a wholly-owned portfolio company, provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing; and (iv) International Professional Marketing, Inc. (“IPM”), a wholly-owned portfolio company which consults, strategizes, designs, and implements technology solutions for enterprise and commercial clients across the U.S.

Business Finance Platform

Our portfolio consists of guaranteed and unguaranteed non-affiliate SBA loan investments that were made through our business finance platform, which includes Newtek Small Business Finance, LLC (“NSBF”), a nationally licensed SBA lender under the federal Section 7(a) loan program. SBA 7(a) loans are partially guaranteed by the SBA, an independent government agency that facilitates one of the nation’s largest sources of SMB financing. SBA guarantees typically range between 75% and 90% of the principal and interest due.

3


 
 

TABLE OF CONTENTS

NSBF has a dedicated Senior Lending Team that originates and services SBA 7(a) loans to qualifying SMBs. NSBF sells the guaranteed portions of its SBA 7(a) loans, typically within two weeks of origination, and retains the unguaranteed portion until accumulating sufficient loans for a securitization. NSBF’s securitization process is as follows. After accumulating sufficient loans, the loans are transferred to a special purpose vehicle (a “Trust”), which in turn issues notes against the Trust’s assets in a private placement. The Trust’s primary source of income for repaying the securitization notes is the cash flows generated from the unguaranteed portion of SBA 7(a) loans now owned by the Trust; principal on the securitization notes will be paid by cash flow in excess of that needed to pay various fees related to the operation of the Trust and interest on the debt. Securitization notes have an expected maturity of about five years, and the Trust is dissolved when the securitization notes are paid in full.

NSBF has received preferred lender program (“PLP”) status, a designation whereby the SBA authorizes the most experienced SBA lenders to place SBA guarantees on loans without seeking prior SBA review and approval. PLP status allows NSBF to serve its clients in an expedited manner since it is not required to present applications to the SBA for concurrent review and approval.

NSBF maintains a diversified pool of loans by focusing on making smaller loans, approximately $1.0 million or less, that are dispersed both geographically and among industries, thereby limiting NSBF’s exposure to regional and industry-specific economic downturns. NSBF supports its lending activities with lines of credit for the unguaranteed and guaranteed portions of SBA 7(a) Loans. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Capital Resources — Capital One Facility” for more information.

NSBF evaluates the credit quality of its loan portfolio by employing a risk rating system that is similar to the Uniform Classification System, which is the asset classification system adopted by the Federal Financial Institution Examinations Council. NSBF’s risk rating system is granular with multiple risk ratings in both the Acceptable and Substandard categories. NSBF assigns ratings based on numerous factors, including credit risk scores, collateral type, loan to value ratios, industry, financial health of the business, payment history, other internal metrics/analysis, and qualitative assessments. NSBF refreshes risk ratings as appropriate based upon considerations such as market conditions, loan characteristics, and portfolio trends. Refer to “Business —  Ongoing Relationships with Portfolio Companies” for a description of our risk rating system.

The business finance platform also includes Newtek Business Credit Solutions (“NBC”), a wholly-owned portfolio company that provides financing services to businesses through receivables financing and, beginning in 2015, originates loans under the SBA 504 loan program. NBC provides billing and accounts receivable maintenance services to businesses, as well as inventory financing services to businesses via prime plus interest lending based on eligible inventory balances. NBC also offers managerial assistance to SMBs, including offering back office receivables services, such as billing and cash collections.

An additional wholly-owned portfolio company, Small Business Lending, LLC (“SBL”), engages in third party loan servicing for SBA and non-SBA loans. NSBF, along with SBL, manages a portfolio of approximately $1.3 billion of loans, which as of June 30, 2017 included approximately $197.6 million of loans that SBL services on behalf of third parties.

Controlled Portfolio Companies

In addition to our debt investments in portfolio companies, we also hold controlling equity interests, either directly or through our business finance platform, in certain portfolio companies that, as of June 30, 2017, represented approximately 35% of our total investment portfolio. Specifically, we hold a controlling equity interest in SBL, NBC, ADR Partners, LLC d/b/a banc-serv Partners, LLC (“BSP”), Universal Processing Services of Wisconsin, LLC d/b/a Newtek Merchant Solutions (“NMS” or “UPSW”), Premier Payments LLC d/b/a Newtek Payment Solutions (“Premier”), Newtek Technology Solutions, Inc. (“NTS”), PMTWorks Payroll, LLC d/b/a Newtek Payroll and Benefits Solutions (“NPS”), Newtek Insurance Agency, LLC (“NIA”), and International Professional Marketing, Inc. (“IPM”). We refer to these entities (among others), collectively, as our “controlled portfolio companies.” Our controlled portfolio companies provide us with an extensive network of business relationships that supplement our referral sources and that we believe will help us to maintain a robust pipeline of lending opportunities and expand our business finance platform.

4


 
 

TABLE OF CONTENTS

For example, NMS has entered into agreements with two chartered banks (“bank sponsorships”), which allow NMS to access the Visa® and MasterCard® networks in order to process bankcard transactions.

Neither the controlled portfolio companies nor their operating revenues are consolidated in our financial reporting. The revenues that our controlled portfolio companies generate, after deducting operational expenses, may be distributed to us. As a BDC, our Board will determine quarterly the fair value of our controlled portfolio companies in a similar manner as our other investments. In particular, our investments in our controlled portfolio companies are valued using a valuation methodology that incorporates both the market approach (guideline public company method) and the income approach (discounted cash flow analysis). In following these approaches, factors that we may take into account in determining the fair value of our investments include, as relevant: available current market data, including relevant and applicable market trading comparables, the portfolio company’s earnings and discounted cash flows, comparisons of financial ratios of peer companies that are public, and enterprise values, among other factors. In addition, the Company has engaged third party valuation firms to provide valuation consulting services for the valuation of certain of our controlled portfolio companies for which there is not a readily available market value. Specifically, the Board has directed the Company to engage independent valuation firms to assist in valuing 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. See “Critical Accounting and Estimates — Fair Value Measurement.”

Certified Capital Companies (Capcos)

Certified capital companies, or “Capcos,” are companies that Newtek created pursuant to state-sponsored programs, which are designed to encourage investment in small and new businesses and to create economic activity and jobs in designated geographic areas. See “Business — Organizational Overview — Certified Capital Companies (Capcos).”

Historically, our Capcos invested in SMBs and generated interest income, investment returns, non-cash income from tax credits, and non-cash expenses (i.e., interest, insurance, and cash management fees and expenses). We have de-emphasized our Capco business in favor of growing our controlled portfolio companies and do not anticipate creating any new Capcos. We continue to invest in and lend to SMBs through our existing Capcos and intend to meet the goals of the Capco programs.

As the Capcos reach 100% investment we will seek to de-certify them as Capcos and liquidate their remaining assets, which will reduce their operational costs (particularly compliance costs). Eight of our original sixteen Capcos have reached this stage. See “Risk Factors — Risks Relating to Our Capco Business.”

Newtek Branding

We use an integrated multi-channel marketing approach featuring direct, indirect and outbound solicitation efforts. Our direct marketing efforts feature a line of products and services that were branded with our “go-to market” brand, The Small Business Authority®, and which was supported by a marketing campaign built around this brand, and our former web presence, www.thesba.com. We have rolled out our new “go to market” brand, Your Business Solutions Company®, which is being supported by a new marketing campaign and our new web domain, NewtekOne.comTM.

We market indirectly through referrals from our strategic alliance partners, which include banks, insurance companies, credit unions, and other affinity groups, using our patented NewTracker® referral system. The NewTracker® system provides for security and transparency between referring parties, and allows us and our alliance partners to review in real time the status of any referral as well as to provide real time compliance oversight by the respective alliance partner. We own the NewTracker® patent, as well as all trademarks and other patented intellectual property used by us or our controlled portfolio companies.

We obtain referrals from individual professionals in geographic markets that have signed up to provide referrals and earn commissions through our BizExec and TechExec Programs, which include traditional information technology professionals, CPAs, independent insurance agents and sales and/or marketing professionals. We also market our electronic payment processing services through independent sales agents, and web technology and eCommerce services through internet-based marketing and third-party resellers.

5


 
 

TABLE OF CONTENTS

Senior Lending Team and Executive Committee

Each of the key members of our Senior Lending Team, which include Barry Sloane, Peter Downs, David Leone, Robert Hawes, Gary Golden, and Gary Taylor (our “Senior Lending Team”), has over 25 years of experience in finance-related fields. We believe that each member brings a complementary component to a team well-rounded in finance, accounting, operations, strategy, business law, and executive management.

Our executive officers include Barry Sloane, Peter Downs, Jennifer C. Eddelson, Michael A. Schwartz, and John Raven (our “Executive Committee”), which manage the Company, under the supervision of our Board. While our portfolio companies are independently managed, our Executive Committee oversees our controlled portfolio companies and, to the extent that we may make additional equity investments in the future, the Executive Committee will also have primary responsibility for identifying, screening, reviewing, and completing such investments. We do not expect to focus our resources on investing in additional stand-alone equity investments, but may elect to do so from time to time on an opportunistic basis, if such opportunities arise. Messrs. Sloane and Downs have been involved together in the structuring and management of equity investments for the past fourteen years.

Market Opportunity

We believe that the limited amount of capital and financial products available to SMBs, coupled with the desire of these companies for flexible and partnership-oriented sources of capital and other financial products, create an attractive investment environment for us to further expand our business finance platform and overall brand. We believe the following factors will continue to provide us with opportunities to grow and deliver attractive returns to stockholders.

The SMB market represents a large, underserved market.  We believe that the SMB market, which we estimate to be over 27 million mostly privately-held businesses, is relatively underserved by traditional capital providers such as commercial banks, finance companies, hedge funds and collateralized loan obligation funds. Further, we believe that such companies generally possess conservative capital structures with significantly less debt to equity, as compared to larger companies with more financing options. As the largest non-bank originator of SBA 7(a) loans by dollar volume and currently the eighth largest SBA 7(a) lender in the U.S., we believe we and our controlled portfolio companies are well positioned to provide financing to SMBs, and have the technology and infrastructure in place to do so it cost effectively, in all 50 states, and across many industries.

Future refinancing activity is expected to create additional investment opportunities.  A high volume of financings completed between 2005 and 2008 will mature in the coming years. We believe this supply of opportunities coupled with limited financing providers focused on SMBs will continue to offer investment opportunities with attractive risk-weighted returns.

The increased capital requirements and other regulations placed on banks may reduce lending by traditional large financial institutions and community banks.  We believe that debt financing through traditional large financial institutions will continue to be constrained for several years as U.S. and international regulators continue to phase in financial reforms, such as Basel III, and U.S. regulators promulgate rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act. We believe that these regulations will increase capital requirements and have the effect of further limiting the capacity of traditional financial institutions to hold non-investment grade loans on their balance sheets. As a result, we believe that many of these financial institutions have de-emphasized their service and product offerings to SMBs, which we believe will make a higher volume of deal flow available to us.

Increased demand for comprehensive, business-critical SMB solutions.  Increased competition and rapid technological innovation are creating an increasingly competitive business environment that requires SMBs to fundamentally change the way they manage critical business processes. This environment is characterized by greater focus on increased quality, lower costs, faster turnaround and heightened regulatory scrutiny. To make necessary changes and adequately address these needs, we believe that companies are focusing on their core competencies and utilizing cost-effective outsourced solutions to improve productivity, lower costs and manage operations more efficiently. Our controlled portfolio companies provide critical business solutions such as business lending, receivables financing, including inventory financing and health

6


 
 

TABLE OF CONTENTS

care receivables, electronic payment processing, managed IT solutions (including eCommerce, webhosting and datacenters), personal and commercial insurance services and full-service payroll and benefit solutions. We believe that each of these market segments is underserved for SMBs and since we are able to provide comprehensive solutions under one platform, we are well positioned to continue to realize growth from these product offerings.

Competitive Advantages

We believe that we are well positioned to take advantage of investment opportunities in SMBs due to the following competitive advantages:

Internally Managed Structure and Significant Management Resources.  We are internally managed by our executive officers under the supervision of our Board and do not depend on an external investment advisor. As a result, we do not pay investment advisory fees and all of our income is available to pay our operating costs, which include employing investment and portfolio management professionals, and to make distributions to our stockholders. We believe that our internally managed structure provides us with a lower cost operating expense structure, when compared to other publicly traded and privately-held investment firms which are externally managed, and allows us the opportunity to leverage our non-interest operating expenses as we grow our investment portfolio.
Business Model Enables Attractive Risk-Weighted Return on Investment in SBA Lending.  Our SBA 7(a) loans are structured so as to permit rapid sale of the U.S. government guaranteed portions, often within weeks of origination, and the unguaranteed portions have been successfully securitized and sold, usually within a year of origination. The return of principal and premium may result in an advantageous risk-weighted return on our original investment in each loan. We may determine to retain the government guaranteed or unguaranteed portions of loans pending deployment of excess capital.
State of the Art Technology.  Our patented NewTracker® software enables us to board a SMB customer, process the application or inquiry, assemble necessary documents, complete the transaction and create a daily reporting system. This system enables us to identify a transaction, then process the business transaction and generate internal reports used by management and external reports for strategic referral partners. It allows our referral partners to have digital access into our back office and follow on a real time, 24/7 basis the processing of their referred customers. This technology has been made applicable to all of the service and product offerings we make directly or through our controlled portfolio companies.
Established Direct Origination Platform with Extensive Deal Sourcing Infrastructure.  We have established a direct origination pipeline for investment opportunities without the necessity for investment banks or brokers as well as broad marketing channels that allow for highly selective underwriting. Over the past fourteen years, the combination of our brand, our portal, our patented NewTracker® technology, and our web presence as The Small Business Authority® has created an extensive deal sourcing infrastructure. We anticipate that our new web presence, Your Business Solutions Company®, supported by our new web domain, NewtekOne.comTM, will continue this trend. We pay fees for loan originations that are referred to us by our alliance partners and our investment team works directly with the borrower to assemble and underwrite loans. We rarely invest in pre-assembled loans that are sold by investment banks or brokers. As a result, we believe that our unique national origination platform allows us to originate attractive credits at a low cost. We anticipate that our principal source of investment opportunities will continue to be in the same types of SMBs to which we currently provide financing. Our Executive Committee and Senior Lending Team will also seek to leverage their extensive network of additional referral sources, including alliance partners, law firms, accounting firms, financial, operational and strategic consultants and financial institutions, with whom we have completed investments. We believe our current infrastructure and expansive relationships should continue to enable us to review a significant amount of high quality, direct (or non-brokered) investment opportunities.

7


 
 

TABLE OF CONTENTS

Experienced Senior Lending Team with Proven Track Record.  We believe that, under the direction of our Senior Lending Team, NSBF has become one of the leading capital providers to SMBs. Since we acquired NSBF in 2003, through June 30, 2017, NSBF has invested in excess of $1.6 billion in 2,314 transactions. Our Senior Lending Team has expertise in managing the SBA process and has managed a diverse portfolio of investments with a broad geographic and industry mix. While our primary focus is to expand the debt financing activities of NSBF in SBA 7(a) loans, we expect SBA 504 loans to be made by NBC to be a growth opportunity, although there can be no assurances that such growth will occur.
Flexible, Customized Financing Solutions for Seasoned, Smaller Businesses.  While our primary focus as a BDC is to expand NSBF’s lending by providing SBA 7(a) loans to SMBs, we also seek to offer SMBs a variety of attractive financing structures, as well as cost effective and efficient business services, to meet their capital needs through our subsidiaries and controlled portfolio companies. In particular, CDS offers larger loans, between $5.0 to $10.0 million, than available with the SBA guarantee, but with a higher interest rate to compensate for the increased risk. Unlike many of our competitors, we believe we have the platform to provide a complete package of business services and financing options for SMBs, which allows for cross-selling opportunities and improved client retention. We expect that a large portion of our capital will be loaned to companies that need growth capital, acquisition financing or funding to recapitalize or refinance existing debt facilities. Our lending will continue to focus on making loans to SMBs that:
have 3 to 10 years of operational history;
significant experience in management;
credit worthy owners who provide a personal guarantee for our investment;
show a strong balance sheet including primarily real estate to collateralize our investments; and
show sufficient cash flow to be able to service the payments on our investments comfortably.

We generally seek to avoid investing in high-risk, early-stage enterprises that are only beginning to develop their market share or build their management and operational infrastructure with limited collateral. We also believe our SBA license, combined with our PLP designation, provides us with a distinct competitive advantage over other SMB lenders that have not overcome these significant barriers-to-entry in our primary loan market.

Disciplined Underwriting Policies and Rigorous Portfolio Management.  We pursue rigorous due diligence of all prospective investments originated through our platform. Our Senior Lending Team has developed an extensive underwriting due diligence process, which includes a review of the operational, financial, legal and industry performance and outlook for the prospective investment, including quantitative and qualitative stress tests, review of industry data and consultation with outside experts regarding the creditworthiness of the borrower. These processes continue during the portfolio monitoring process, when we will conduct field examinations, review compliance certificates and covenants and regularly assess the financial and business conditions and prospects of portfolio companies. Our controlled portfolio company SBL is a servicer for commercial loans, offering servicing capabilities with a compact timeline for loan resolutions and dispositions and has attracted various third-party portfolios. banc-serv Partners, LLC, a wholly-owned portfolio company, provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing.

The Offering

We may offer, from time to time, up to $300,000,000 of common stock, preferred stock, subscription rights to purchase shares of common stock, warrants, or debt securities, on terms to be determined at the time of each offering. We will offer our securities at prices and on terms to be set forth in one or more supplements to this prospectus. The offering price per share of our securities, less any underwriting commissions or discounts, generally will not be less than the net asset value per share of our securities at the time of an offering. However, we may issue securities pursuant to this prospectus at a price per share that is less than our

8


 
 

TABLE OF CONTENTS

net asset value per share (i) in connection with a rights offering to our existing stockholders, (ii) with the prior approval of the majority of our common stockholders or (iii) under such other circumstances as the SEC may permit. Any such issuance of shares of our common stock below net asset value may be dilutive to the net asset value of our common stock. See “Risk Factors — Risks Relating to Offerings Pursuant to this Prospectus”.

Our securities may be offered directly to one or more purchasers, or through agents designated from time to time by us, or to or through underwriters or dealers. The prospectus supplement relating to an offering will identify any agents or underwriters involved in the sale of our securities, and will disclose any applicable purchase price, fee, commission, or discount arrangement between us and our agents or underwriters or among our underwriters or the basis upon which such amount may be calculated. See “Plan of Distribution”. We may not sell any of our securities through agents, underwriters or dealers without delivery of this prospectus and a prospectus supplement describing the method and terms of the offering of securities.

Set forth below is additional information regarding offerings of securities pursuant to this prospectus:

Use of Proceeds

Unless otherwise specified in a prospectus supplement, we plan to use the net proceeds from the sale of our securities for funding investments in debt and equity securities in accordance with our investment objective and strategies described in this prospectus. Additionally, we may use net proceeds for general corporate purposes, which include funding investments, repaying any outstanding indebtedness, acquisitions, and other general corporate purposes. The supplement to this prospectus relating to an offering will more fully identify the use of proceeds from such offering. See “Use of Proceeds”.

Distributions

We intend to pay quarterly distributions to our stockholders out of assets legally available for distribution. The quarterly distributions, if any, will be determined by our Board. The distributions we pay to our stockholders in a year may exceed our taxable income for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes. The specific tax characteristics of our distributions will be reported to stockholders after the end of the calendar year. See “Price Range Of Common Stock And Distributions.”

Taxation

We have elected to be treated for U.S. federal income tax purposes, beginning with our 2015 tax year, and intend to qualify annually thereafter, as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to pay corporate-level federal income taxes on any ordinary income or capital gains that we distribute to our stockholders. To maintain our RIC tax treatment, we must meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any (the “Annual Distribution Requirement”). See “Price Range Of Common Stock And Distributions” and “Material U.S. Federal Income Tax Considerations.”

Leverage

As of August 21, 2017, we had an aggregate of $190.9 million of debt outstanding, including $19.9 million outstanding under our $100.0 million credit facility with Capital One (the “Credit Facility”), securitization notes payable of $101.1 million, $40.3 million of Notes due 2021, $8.3 million of Notes due 2022 and $21.3 million of Notes payable — related parties. We may seek additional forms of leverage and borrow funds to make investments, including before we have fully invested the proceeds of this offering. As a result, we will be exposed to the risks of leverage, which may be considered a speculative investment technique. The use of leverage magnifies the potential for loss on amounts invested and therefore increases the risks associated with investing in our securities. The costs associated with our borrowings are borne by our common stockholders. See “Risk Factors.”

9


 
 

TABLE OF CONTENTS

Trading

Our common stock trades on the Nasdaq Global Market under the symbol “NEWT.” Shares of closed-end investment companies, including BDCs, frequently trade at a discount to their net asset value. The risk that our shares may trade at a discount to our net asset value is separate and distinct from the risk that our net asset value per share may decline. We cannot predict whether our shares will trade above, at or below net asset value. As of August 21, 2017, our common stock closed at a 19% premium to our net asset value of $14.36 per share as of June 30, 2017.

Dividend Reinvestment Plan

We have adopted an “opt out” dividend reinvestment plan. If your shares of common stock are registered in your own name, your distributions will automatically be reinvested under our dividend reinvestment plan in additional whole and fractional shares of common stock, unless you “opt out” of our dividend reinvestment plan so as to receive cash dividends by delivering a written notice to our dividend paying agent. If your shares are held in the name of a broker or other nominee, you should contact the broker or nominee for details regarding opting out of our dividend reinvestment plan. Stockholders who receive distributions in the form of stock will be subject to the same federal, state, and local tax consequences as stockholders who elect to receive their distributions in cash. See “Dividend Reinvestment Plan.”

Summary Risk Factors

The value of our assets, as well as the market price of our shares, will fluctuate. Our investments may be risky, and you may lose all or part of your investment in us. Investing in Newtek involves other risks, including the following:

Risk Related to Our Business and Structure

Throughout our 19 year history we have never operated as a BDC until we converted on November 12, 2014.
Our investment portfolio is recorded at fair value, with our Board having final responsibility for overseeing, reviewing and approving, in good faith, its estimate of fair value and, as a result, there is uncertainty as to the value of our portfolio investments.
Our financial condition and results of operations will depend on our ability to manage and deploy capital effectively.
We are dependent upon our Senior Lending Team and our Executive Committee for our future success, and if we are unable to hire and retain qualified personnel or if we lose any member of our Senior Lending Team or our Executive Committee our ability to achieve our investment objective could be significantly harmed.
We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses.
If we are unable to source investments effectively, we may be unable to achieve our investment objective.
Our business model depends to a significant extent upon strong referral relationships, and our inability to maintain or further develop these relationships, as well as the failure of these relationships to generate investment opportunities, could adversely affect our business.
Any failure on our part to maintain our status as a BDC would reduce our operating flexibility.
Regulations governing our operation as a BDC affect our ability to raise additional capital and the way in which we do so. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage.
Because we intend to distribute substantially all of our income to our stockholders to maintain our tax treatment as a RIC, we will continue to need additional capital to finance our growth, and regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital and make distributions.

10


 
 

TABLE OF CONTENTS

Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.
To the extent we borrow money to finance our investments, changes in interest rates will affect our cost of capital and net investment income.
We may experience fluctuations in our quarterly and annual results.
Our Board may change our investment objective, operating policies and strategies without prior notice or stockholder approval, the effects of which may be adverse.
We will be subject to corporate-level income tax if we are unable to maintain our qualification as a RIC or are unable to make the distributions required to maintain RIC tax treatment.
We may not be able to pay distributions to our stockholders, our distributions may not grow over time and a portion of our distributions may be a return of capital.
We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.
We may in the future choose to pay dividends in our own stock, in which case investors may be required to pay tax in excess of the cash they receive.
Internal control deficiencies could impact the accuracy of our financial results or prevent the detection of fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.
Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.
We have specific risks associated with SBA loans.
Curtailment of the government-guaranteed loan programs could adversely affect our results of operations.
Curtailment of our ability to utilize the SBA 7(a) Loan Program by the Federal government could adversely affect our results of operations.
Our loans under the Section 7(a) Loan Program involve a high risk of default and such default could adversely impact our results of operations.
The loans we make under the Section 7(a) Loan Program face competition.
NSBF, our wholly-owned subsidiary, is subject to regulation by the SBA.
There can be no assurance that NSBF will be able to maintain its status as a PLP or that NSBF can maintain its SBA 7(a) license.
If NSBF fails to comply with SBA regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, liability on the SBA guaranty, in whole or part, could be transferred to NSBF.
Our business is subject to increasingly complex corporate governance, public disclosure and accounting requirements that are costly and could adversely affect our business and financial results.
If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending and investment activities, our net asset value could decrease and our level of distributions and liquidity could be affected adversely.
Capital markets may experience periods of disruption and instability and we cannot predict when these conditions will occur. Such market conditions could materially and adversely affect debt and equity capital markets in the United States and abroad, which could have a negative impact on our business, financial condition and results of operations.

11


 
 

TABLE OF CONTENTS

We are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our securities and our ability to make distributions to our stockholders.
Terrorist attacks, acts of war or natural disasters may affect any market for our securities, impact the businesses in which we invest and harm our business, operating results and financial condition.
We face cyber-security risks.
We could be adversely affected by information security breaches or cyber security attacks.
The failure of our cyber-security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning, could impair our ability to conduct business effectively.

Risks Related to Our Investments Generally

Our investments are very risky and highly speculative.
An investment strategy focused primarily on smaller privately held companies involves a high degree of risk and presents certain challenges, including the lack of available information about these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns.
Our investments in leveraged portfolio companies may be risky, and you could lose all or part of your investment.
Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.
Second priority liens on collateral securing loans that we make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us.
If we make subordinated investments, the obligors or the portfolio companies may not generate sufficient cash flow to service their debt obligations to us.
The disposition of our investments may result in contingent liabilities.
There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.
Economic recessions could impair our portfolio companies and harm our operating results.
The lack of liquidity in our investments may adversely affect our business.
Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.
Our portfolio may lack diversification among portfolio companies which may subject us to a risk of significant loss if one or more of these companies default on its obligations under any of its debt instruments.
We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we may invest a significant portion of our assets in a relatively small number of issuers, which subjects us to a risk of significant loss if any of these issuers defaults on its obligations under any of its debt instruments or as a result of a downturn in the particular industry.
Our portfolio may be concentrated in a limited number of industries, which may subject us to a risk of significant loss if there is a downturn in a particular industry in which a number of our investments are concentrated.

12


 
 

TABLE OF CONTENTS

Because we may not hold controlling equity interests in certain of our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.
Defaults by our portfolio companies will harm our operating results.
If we and our portfolio companies are unable to protect our intellectual property rights, our business and prospects could be harmed, and if we and our portfolio companies are required to devote significant resources to protecting their intellectual property rights, the value of our investment could be reduced.
Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.
We may not realize gains from our equity investments.
We may expose ourselves to risks if we engage in hedging transactions.
An increase in non-performing assets would reduce our income and increase our expenses.
If the assets securing the loans that we make decrease in value, then we may lack sufficient collateral to cover losses.
We could be adversely affected by weakness in the residential housing and commercial real estate markets.

Risks Relating to Our Controlled Portfolio Companies — Newtek Merchant Solutions (NMS)

We could be adversely affected if either of NMS’ two bank sponsorships is terminated.
If NMS or its processors or bank sponsors fail to adhere to the standards of the Visa® and MasterCard® bankcard associations, its registrations with these associations could be terminated and it could be required to stop providing payment processing services for Visa® and MasterCard®.
On occasion, NMS experiences increases in interchange and sponsorship fees. If it cannot pass along these increases to its merchants, its profit margins will be reduced.
Unauthorized disclosure of merchant or cardholder data, whether through breach of our computer systems or otherwise, could expose us to liability and business losses.
NMS is liable if its processing merchants refuse or cannot reimburse charge-backs resolved in favor of their customers.
NMS has potential liability for customer or merchant fraud.
NMS payment processing systems may fail due to factors beyond its control, which could interrupt its business or cause it to lose business and likely increase costs.
The electronic payment processing business is undergoing very rapid technological changes which may make it difficult or impossible for NMS or Premier Payments to compete effectively.
NMS and others in the payment processing industry have come under increasing pressures from various regulatory agencies seeking to use the leverage of the payment processing business to limit or modify the practices of merchants which could lead to increased costs and liabilities.
Increased regulatory focus on the payments industry may result in costly new compliance burdens on NMS’ clients and on NMS itself, leading to increased costs and decreased payments volume and revenues.

Risks Related to Our Controlled Portfolio Companies — Newtek Technology Solutions (NTS)

NTS operates in a highly competitive industry in which technological change can be rapid.
NTS’ technology solutions business depends on the efficient and uninterrupted operation of its computer and communications hardware systems and infrastructure.

13


 
 

TABLE OF CONTENTS

NTS’ inability to maintain the integrity of its infrastructure and the privacy of confidential information would materially affect its business.
NTS could be adversely affected by information security breaches or cyber security attacks.
NTS’ business depends on Microsoft Corporation and others for the licenses to use software as well as other intellectual property in the managed technology solutions business.
NTS’ managed technology business is built on technological platforms relying on the Microsoft Windows® products and other intellectual property that NTS currently licenses. As a result, if NTS is unable to continue to have the benefit of those licensing arrangements or if the products upon which its platform is built become obsolete, its business could be materially and adversely affected.

Risks Related to Our Controlled Portfolio Companies — Newtek Insurance Agency (NIA)

NIA depends on third parties, particularly property and casualty insurance companies, to supply the products marketed by its agents.
If NIA fails to comply with government regulations, its insurance agency business would be adversely affected.
NIA does not have any control over the commissions it earns on the sale of insurance products which are based on premiums and commission rates set by insurers and the conditions prevalent in the insurance market.

Risks Related to Our Controlled Portfolio Companies — Newtek Payroll and Benefits Solutions (NPS)

Unauthorized disclosure of customer employee data, whether through a cyber-security breach of our computer systems or otherwise, could expose NPS to liability and business losses.
NPS is subject to risks surrounding Automated Clearing House (“ACH”) payments.
NPS’ systems may be subject to disruptions that could adversely affect its business and reputation.
If NPS fails to adapt its technology to meet client needs and preferences, the demand for its services may diminish.
NPS could incur unreimbursed costs or damages due to delays in processing inherent in the banking system.
NPS could incur unreimbursed costs or damages due to delays in processing customer payrolls or payroll taxes.

Risks Related to Our Controlled Portfolio Companies — Newtek Business Credit Solutions (NBC)

An unexpected level of defaults in NBC’s accounts receivables portfolio would reduce its income and increase its expenses.
NBC’s reserve for credit losses may not be sufficient to cover unexpected losses.
NBC depends on outside financing to support its receivables financing business.

Legal Proceedings — Portfolio Companies

Our portfolio companies may, from time to time, be involved in various legal matters, including the currently pending case — Federal Trade Commission v. WV Universal Management, LLC et al., which may have an adverse effect on their operations and/or financial condition. See “Legal Proceedings — Portfolio Companies” on page 47.

Risks Relating to Our CAPCO Business

The Capco programs and the tax credits they provide are created by state legislation and implemented through regulation, and such laws and rules are subject to possible action to repeal or retroactively revise the programs for political, economic or other reasons. Such an attempted repeal or revision would create substantial difficulty for the Capco programs and could, if ultimately successful, cause us material financial harm.

14


 
 

TABLE OF CONTENTS

Because our Capcos are subject to requirements under state law, a failure of any of them to meet these requirements could subject the Capco and our stockholders to the loss of one or more Capcos.
We know of no other publicly-held company that sponsors and operates Capcos as a part of its business. As such, there are, to our knowledge, no other companies against which investors may compare our Capco business and its operations, results of operations and financial and accounting structures.

Risks Relating to Our Securities

As of June 30, 2017, Barry Sloane, President and CEO, beneficially owned approximately 6% of our common stock, and is able to exercise significant influence over the outcome of most stockholder actions.
Our common stock price may be volatile and may decrease substantially.
Future issuances of our common stock or other securities, including preferred shares, may dilute the per share book value of our common stock or have other adverse consequences to our common stockholders.
Our stockholders may experience dilution upon the repurchase of common shares.
The authorization and issuance of “blank check” preferred shares could have an anti-takeover effect detrimental to the interests of our stockholders.
Our business and operation could be negatively affected if we become subject to any securities litigation or stockholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price.
Provisions of the Maryland General Corporation Law and of our charter and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.
Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.
If we issue preferred stock, the net asset value and market value of our common stock will likely become more volatile.
Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current net asset value per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.

Risk Related to Our Publicly-Traded Debt

The 7.5% notes due 2022 (the “2022 Notes”) and the 7.00% notes due 2021 (the “2021 Notes,” and together with the 2022 Notes, the “Notes”) are unsecured and therefore are effectively subordinated to any secured indebtedness we have outstanding or may incur in the future.
The Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.
The indenture under which the Notes were issued contains limited protection for holders of the Notes.
If we default on our obligations to pay other indebtedness that we may incur in the future, we may not be able to make payments on the Notes.
We may choose to redeem the Notes when prevailing interest rates are relatively low.
The trading market or market value of our publicly traded debt securities may fluctuate.
Pending legislation may allow us to incur additional leverage.

See “Risk Factors” beginning on page 23, and the other information included in this prospectus, for additional discussion of factors you should carefully consider before deciding to invest in our securities.

15


 
 

TABLE OF CONTENTS

Recent Developments

Elimination and Consolidation of CIO Position

Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. In addition, the Company has recently created the position of Director of Information Technology and retained Jesse H. Davis in this position.

Results of August 11, 2017 Special Meeting of Shareholders

The Company held a Special Meeting of Shareholders on July 26, 2017, which meeting was adjourned to permit the further solicitation of proxies. The Special Meeting of Shareholders was reconvened on August 11, 2017. The proposal considered at the Special Meeting is described in detail in the Company’s definitive proxy statement for the Special Meeting as filed with the Securities and Exchange Commission on June 19, 2017 (the “Special Meeting Proxy”). At the Special Meeting of Shareholders, the Company’s shareholders approved the proposal described in the Special Meeting Proxy. A total of 17,432,330 outstanding shares were entitled to vote at the meeting. The tabulation of votes was:

Proposal:  To authorize the Company to sell shares of its common stock, par value $0.02 per share, at a price below the then current net asset value per share of such common stock in one or multiple offerings, subject to certain limitations described in the proxy statement pertaining thereto (including that the number of shares sold on any given date does not exceed 20% of its outstanding common stock immediately prior to such sale):

ALL VOTES:

   
Votes For   Votes Against   Abstentions
8,237,460
    1,323,322       200,561  

VOTES BY NON-AFFILIATED PERSONS:

   
Votes For   Votes Against   Abstentions
6,913,900
    1,323,322       200,561  

Third Quarter 2017 Dividend

On August 21, 2017, the Company announced that its Board declared a third quarter 2017 cash dividend of $0.44 per share, payable on September 29, 2017 to shareholders of record as of September 22, 2017. In addition, the Company increased its 2017 annual cash dividend forecast by $0.07 per share, to $1.64 per share, which represents an approximate 4.5% increase over the Company’s previous 2017 annual dividend forecast of $1.57 per share.

General Information

Our principal executive offices are located at 1981 Marcus Avenue, Suite 130, Lake Success, NY 11042, our telephone number is (212) 356-9500 and our website may be found at http://www.NewtekOne.com. Information contained in our website is not incorporated by reference into this prospectus, and you should not consider that information to be part of this prospectus.

We are required to file periodic reports, current reports, proxy statements and other information with the SEC. This information is available at the SEC’s public reference room at 100 F Street, NE, Washington, D.C. 20549 and on the SEC’s website at http://www.sec.gov. The public may obtain information on the operation of the SEC’s public reference room by calling the SEC at 1-800-SEC-0330. This information is also available free of charge by contacting us at Newtek Business Services Corp., 1981 Marcus Avenue, Suite 130, Lake Success, NY 11042, by telephone at (212) 356-9500 or on our website at http://www.NewtekOne.com. Information contained on our website or on the SEC’s website about us is not incorporated into this prospectus and you should not consider information contained on our website or on the SEC’s website to be part of this prospectus.

16


 
 

TABLE OF CONTENTS

FEES AND EXPENSES

The following table is intended to assist you in understanding the costs and expenses that you will bear directly or indirectly. We caution you that many of the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this prospectus contains a reference to fees or expenses paid by “you,” “us” or “Newtek,” or that “we” will pay fees or expenses, the Company will pay such fees and expenses out of our net assets and, consequently, you will indirectly bear such fees or expenses as an investor in Newtek Business Services Corp. However you will not be required to deliver any money or otherwise bear personal liability or responsibility for such fees or expenses.

 
Stockholder transaction expenses:
        
Sales load (as a percentage of offering price)     %(1) 
Offering expenses borne by us (as a percentage of offering price)     %(2) 
Dividend reinvestment plan fees   $ 15.00 (3) 
Total stockholder transaction expenses (as a percentage of offering price)(4)     % 
Annual expenses (as a percentage of net assets attributable to common stock)(5):
        
Operating expenses     14.31 %(6) 
Interest payments on borrowed funds     4.71 %(7) 
Other expenses     0.03 %(8) 
Acquired funds fees and expenses     None (9) 
Total annual expenses     19.05 %(10) 

(1) In the event that the securities to which this prospectus relates are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load and the example will be updated accordingly.
(2) The prospectus supplement corresponding to each offering will disclose the applicable estimated amounts of offering expenses of the offering and offering expenses borne by us as a percentage of the offering price.
(3) The expenses of the dividend reinvestment plan are included in “other expenses.” The plan administrator’s fees will be paid by us. There will be no brokerage charges or other charges to stockholders who participate in the plan except that, if a participant elects by written notice to the plan administrator to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15.00 transaction fee plus a $0.10 per share brokerage commission from the proceeds. For additional information, see “Distribution Reinvestment Plan.”
(4) Total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus supplement, if any.
(5) The annualized expenses are based on our annualized expenses and net asset value as of June 30, 2017.
(6) “Operating expenses” represents an estimate of our annual operating expense. We do not have an investment advisor. We are internally managed by our executive officers under the supervision of our Board. As a result, we do not pay investment advisory fees. Instead we pay the operating costs associated with employing investment management professionals.
(7) We may borrow funds from time to time to make investments to the extent that the economic situation is conducive to doing so. “Interest Payments on Borrowed Funds” represents estimated interest and fee payments on borrowed funds by estimating our annualized interest, fees and other debt-related expenses incurred for the quarter ended June 30, 2017, including our bank notes payable, Notes due 2021, Notes due 2022, related party notes payable and securitization notes payable.
(8) “Other expenses” consist of estimated transfer agent expenses related to our dividend reinvestment plan.
(9) We have no current intention to invest in the securities of other investment companies. However, we are permitted to make such investments in limited circumstances under the 1940 Act. If we were to make such investments, we would incur fees and our stockholders would pay two levels of fees. As we have no current expectation of making any such investments, any estimate of the amount of such fees would be highly speculative.
(10) The holders of shares of our common stock indirectly bear the cost associated with our annual expenses.

17


 
 

TABLE OF CONTENTS

Example

The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed that our annual operating expenses would remain at the levels set forth in the table above.

       
  1 Year   3 Years   5 Years   10 Years
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return   $ 200     $ 631     $ 1,105     $ 2,516  

The example and the expenses in the tables above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown. While the example assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less than 5%. Further, while the example assumes reinvestment of all dividends and distributions at net asset value, participants in our dividend reinvestment plan will receive a number of shares of our common stock, generally determined by dividing the total dollar amount of the dividend payable to a participant by the market price per share of our common stock at the close of trading on the dividend payment date, which may be at, above or below net asset value. See “Dividend Reinvestment Plan” for additional information regarding our dividend reinvestment plan.

18


 
 

TABLE OF CONTENTS

SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA

The following selected statements of operations and balance sheet data have been derived from the audited financial statements for each of the five years ended December 31, 2016. The Consolidated Financial Statements for the year ended December 31, 2016, the year ended December 31, 2015, the period from November 12, 2014 to December 31, 2014, the period from January 1, 2014 to November 11, 2014 and the year ended December 31, 2013 have been audited by RSM US LLP (formerly McGladrey LLP). The Consolidated Financial Statements for the years ended December 31, 2012 (not separately presented herein) have been audited by an independent registered public accountant. The selected financial data set forth below should be read in conjunction with, and is qualified by reference to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements, including the Notes thereto. The selected financial and other data for the six months ended June 30, 2017 and other quarterly financial information is derived from our unaudited financial statements, but in the opinion of management, reflects all adjustments (consisting only of normal recurring adjustments) that are necessary to present fairly the results of such interim periods. Interim results as of and for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

               
  Six Months
Ended
June 30, 2017
  Six Months
Ended
June 30, 2016
  As a Business Development Company   Prior to becoming a
Business Development Company
Statement of Operations Data:   2016   2015   November 12,
2014 to
December 31,
2014
  January 1,
2014 to
November 11,
2104
  2013   2012
Investment income   $ 18,897     $ 14,017     $ 30,965     $ 26,070     $ 1,976     $     $     $  
Operating revenues                                   131,847       143,593       131,130  
Expenses     22,670       19,478       40,225       32,255       4,305       121,036       131,319       120,570  
Net investment loss     (3,773 )      (5,461 )      (9,260 )      (6,185 )      (2,523 )                   
Net increase in net assets     12,835       10,976       27,305       35,736       681                    
Net income                                   3,208       7,151       5,557  
Net realized and unrealized gains (losses)     16,608       16,437       36,565       41,921       3,204       (3,668 )      (1,205 )      (1,121 ) 
Per Share Data:
                                                                       
Net investment loss   $ (0.22 )    $ (0.38 )    $ (0.64 )    $ (0.57 )    $ (0.33 )    $     $     $  
Net increase in net assets   $ 0.76     $ 0.76     $ 1.88     $ 3.32     $ 0.09                             
Basic earnings per share   $     $     $     $     $       0.45       1.07       0.79  
Diluted earnings per share   $     $     $     $     $       0.45       0.99       0.77  
Dividends declared   $ 0.76     $ 0.70     $ 1.53     $ 4.45     $     $     $     $  
Balance Sheet Data (at end of period):
                                                                       
Investments, at fair value   $ 392,276     $ 305,804     $ 345,224     $ 266,874     $ 233,462       N/A     $ 83,685     $ 43,951  
Total assets   $ 474,895     $ 376,682     $ 401,450     $ 352,430     $ 301,832       N/A     $ 198,612     $ 152,742  
Total debt   $ 203,728     $ 155,573     $ 171,242     $ 131,761     $ 122,543       N/A     $ 101,358     $ 61,862  
Total liabilities   $ 224,651     $ 172,254     $ 192,356     $ 148,481     $ 135,414       N/A     $ 121,603     $ 83,840  
Net assets/stockholders’ equity   $ 250,244     $ 204,428     $ 209,094     $ 203,949     $ 166,418       N/A     $ 77,009     $ 68,902  
Common shares outstanding at end of period     17,432       4,171       14,624       14,509       10,206       N/A       7,077       7,036  

19


 
 

TABLE OF CONTENTS

       
2016   For the quarter ended
(In Thousands, except per share data)
  March 31,
2016
  June 30,
2016
  September 30,
2016
  December 31,
2016
Total Investment Income   $ 6,794     $ 7,223     $ 7,851     $ 9,097  
Net investment (loss) income   $ (1,380 )    $ (4,081 )    $ (2,125 )    $ (1,674 ) 
Net increase in net assets   $ 5,604     $ 5,372     $ 10,040     $ 6,289  
Net increase in net assets per share   $ 0.39     $ 0.37     $ 0.69     $ 0.43  

       
2015   For the quarter ended
(In Thousands, except per share data)
  March 31,
2015
  June 30,
2015
  September 30,
2015
  December 31,
2015
Total Investment Income   $ 4,750     $ 5,606     $ 7,038     $ 8,676  
Net investment (loss) income   $ (2,476 )    $ (2,295 )    $ (1,491 )    $ 77  
Net increase in net assets   $ 10,003     $ 4,876     $ 4,749     $ 16,108  
Net increase in net assets per share   $ 0.98     $ 0.48     $ 0.47     $ 1.31  

         
2014   For the quarter ended   Period from
  (In Thousands, except Per Share Data)
  March 31   June 30   September 30   October 1,
2014 through
November 11,
2014
  November 12,
2014 through
December 31,
2014
Total Revenue   $ 36,087     $ 38,128     $ 38,166     $ 19,466     $  
Investment income   $     $     $     $     $ 1,976  
Income (loss) before income taxes   $ 2,216     $ 2,289     $ 4,523     $ (1,228 )    $  
Net investment loss before income tax   $     $     $     $     $ (2,329 ) 
Net income available to common stockholders   $ 1,391     $ 1,394     $ 2,644     $ (1,415 )    $  
Net increase in net assets resulting from operations   $     $     $     $     $ 681  
Income (loss) per share – Basic   $ 0.20     $ 0.20     $ 0.35     $ (0.19 )    $  
Income (loss) per share – Diluted   $ 0.18     $ 0.18     $ 0.34     $ (0.19 )    $  
Net increase in net assets per share   $     $     $     $     $ 0.09  

20


 
 

TABLE OF CONTENTS

FINANCIAL HIGHLIGHTS

The financial highlights for the Company are as follows:

       
Per share data(2)   Six Months Ended
June 30,
2017
  Year ended
December 31,
2016
  Year ended
December 31,
2015
  November 12,
2014 through
December 31,
2014
Net asset value at beginning of period   $ 14.30     $ 14.06     $ 16.31     $ 13.49  
Issuance of common stock                    2.43       2.73  
Distributions to common stockholders from capital gains     (0.40 )      (1.53 )      (1.76 )       
Dividends to common stockholders from net investment income     (0.36 )                            
Special dividend                    (2.69 )       
Net investment loss     (0.22 )      (0.64 )      (0.57 )      (0.33 ) 
Net realized gain on investments     1.04       2.17       3.14       0.08  
Net unrealized (depreciation) appreciation on investments     (0.03 )      0.85       0.95       0.36  
Change in provision for deferred taxes     0.02       (0.35 )      (0.06 )       
Stock compensation expense     0.04       0.04              
Net unrealized depreciation on servicing assets     (0.06 )      (0.16 )      (0.12 )      (0.02 ) 
Exponential of New York LLC distributions to members                 (0.25 )       
Consolidation of Exponential Business Development Co., Inc.           (0.03 )             
Reversal of deferred tax asset                 (0.19 )       
Out of period adjustment related to BDC Conversion                 (0.06 )       
Impact of restricted stock awards           (0.11 )             
Dilutive effect of special dividend                    (3.07 )       
Other(5)     0.03                             
Net asset value at end of period   $ 14.36     $ 14.30     $ 14.06     $ 16.31  
Per share market value at end of period   $ 16.29     $ 15.90     $ 14.32     $ 14.76  
Total return based on market value(3)     7.23 %      24.51 %      24.46 %      13.10 % 
Total return based on average net asset
value(4)(6)
    11.47 %      12.59 %      13.52 %      20.87 % 
Shares outstanding at end of period     17,432       14,624       14,509       10,206  
Ratios/Supplemental Data:
                                   
Ratio of expenses to average net assets(6)     19.74 %      19.48 %      17.42 %      20.46 % 
Ratio of net investment loss to average
net assets
    (3.29 )%      (4.48 )%      (3.34 )%      (11.99 )% 
Net assets at end of period   $ 250,244     $ 209,094     $ 203,949     $ 166,418  
Average debt outstanding   $ 187,485     $ 151,502     $ 128,680     $ 108,483  
Average debt outstanding per share   $ 10.76     $ 10.36     $ 8.87     $ 10.63  
Asset coverage ratio     223 %      222 %      249 %      223 % 
Portfolio turnover     52.63 %      109.64 %      103.50 %      5.08 % 

(1) Years prior to becoming a business development company are not presented in the financial highlights as the information would not be meaningful.
(2) 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.

21


 
 

TABLE OF CONTENTS

(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 shareholders during the period, divided by the beginning net asset value. The total return does not reflect any sales load that may be paid by shareholders.
(5) Includes the impact of the different share amounts as a result of calculating per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.
(6) Annualized for the six months ended June 30, 2017.

22


 
 

TABLE OF CONTENTS

RISK FACTORS

You should carefully consider the risk factors described below and under the caption “Risk Factors” in any accompanying prospectus supplement, together with all of the other information included in this prospectus and any accompanying prospectus supplement, including our consolidated financial statements and the related notes thereto, before you decide whether to make an investment in our securities. The risks set out below are not the only risks we face. Additional risks and uncertainties 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. If any of the following events occur, our business, financial condition and results of operations could be materially adversely affected. In such case, our net asset value and the trading price of our common stock could decline, and you may lose all or part of your investment.

RISKS RELATING TO OUR BUSINESS AND STRUCTURE

Throughout our 19 year history we have never operated as a BDC until we converted on November 12, 2014.

Although Newtek has operated since 1998, we have limited operating history as a BDC. As a result, we can offer no assurance that we will achieve our investment objective and that the value of any investment in our Company will not decline substantially. As a BDC, we are subject to the regulatory requirements of the SEC, in addition to the specific regulatory requirements applicable to BDCs under the 1940 Act and RICs under the Code. Prior to our BDC Conversion, our management did not have any prior experience operating under this BDC regulatory framework, and we may incur substantial additional costs, and expend significant time or other resources, to do so. In addition, we may be unable to generate sufficient revenue from our operations to make or sustain distributions to our shareholders.

Our investment portfolio is recorded at fair value, with our Board having final responsibility for overseeing, reviewing and approving, in good faith, its estimate of fair value and, as a result, there is uncertainty as to the value of our portfolio investments.

Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us, with our Board having final responsibility for overseeing, reviewing and approving, in good faith, our estimate of fair value. Typically, there is not a public market for the securities of the privately held companies in which we invest. As a result, we value these securities annually and quarterly at fair value based on various inputs, including management, third-party valuation firms and our audit committee, and with the oversight, review and approval of our Board.

The determination of fair value and consequently, the amount of unrealized gains and losses in our portfolio, are to a certain degree, subjective and dependent on a valuation process approved by our Board. Certain factors that may be considered in determining the fair value of our investments include external events, such as private mergers, sales and acquisitions involving comparable companies. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. Our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to this uncertainty, our fair value determinations may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize on one or more of our investments. As a result, investors purchasing our common stock based on an overstated net asset value would pay a higher price than the value of our investments might warrant. Conversely, investors selling stock during a period in which the net asset value understates the value of our investments will receive a lower price for their stock than the value of our investments might warrant.

Our financial condition and results of operations will depend on our ability to manage and deploy capital effectively.

Our ability to achieve our investment objective will depend on our ability to manage and deploy capital, which will depend, in turn, on our management’s ability to identify, evaluate and monitor, and our ability to finance and invest in, companies that meet our investment criteria.

Accomplishing our investment objective on a cost-effective basis will largely be a function of our management’s handling of the investment process, its ability to provide competent, attentive and efficient

23


 
 

TABLE OF CONTENTS

services and our access to investments offering acceptable terms. In addition to monitoring the performance of our existing investments, our Senior Lending Team and our Executive Committee is called upon, from time to time, to provide managerial assistance to some of our portfolio companies.

These demands on their time may distract them or slow the rate of investment. Even if we are able to grow and build upon our investment operations, any failure to manage our growth effectively could have a material adverse effect on our business, financial condition, results of operations and prospects. The results of our operations will depend on many factors, including the availability of opportunities for investment, readily accessible short and long-term funding alternatives in the financial markets and economic conditions. Furthermore, if we cannot successfully operate our business or implement our investment policies and strategies as described herein, it could negatively impact our ability to pay dividends.

We are dependent upon our Senior Lending Team and our Executive Committee for our future success, and if we are unable to hire and retain qualified personnel or if we lose any member of our Senior Lending Team or our Executive Committee our ability to achieve our investment objective could be significantly harmed.

We depend on our Senior Lending Team and Executive Committee as well as other key personnel for the identification, final selection, structuring, closing and monitoring of our investments. These executive officers and employees have critical industry experience and relationships that we rely on to implement our business plan. Our future success depends on the continued service of our Senior Lending Team and our Executive Committee and the replacement of any departing individuals with others of comparable skills and experience. The departure of any of the members of our Senior Lending Team, our Executive Committee or a significant number of our senior personnel could have a material adverse effect on our ability to achieve our investment objective. As a result, we may not be able to operate our business as we expect, and our ability to compete could be harmed, which could cause our operating results to suffer.

We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses.

We compete for investments with other financial institutions and various SMB lenders, as well as other sources of funding. Additionally, competition for investment opportunities has emerged among alternative investment vehicles, such as CLOs, some of which are sponsored by other alternative asset investors, as these entities have begun to focus on making investments in SMBs. As a result of these new entrants, competition for our investment opportunities may intensify. Many of our competitors will be substantially larger and have considerably greater financial, technical and marketing resources than us. For example, some competitors may have a lower cost of capital and access to funding sources that will not be available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments than we will have. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer better pricing and more flexible structuring than we will be able to offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we are forced to match our competitors’ pricing, terms and structure, we may not be able to achieve acceptable returns on our investments or may bear substantial risk of capital loss. Furthermore, many of our competitors will have greater experience operating under, or will not be subject to, the regulatory restrictions that the 1940 Act will impose on us as a BDC, or the source-of-income, asset diversification, and distribution requirements we must satisfy to maintain our tax treatment as a RIC.

If we are unable to source investments effectively, we may be unable to achieve our investment objective.

Our ability to achieve our investment objective depends on our Senior Lending Team’s and our Executive Committee’s ability to identify, evaluate and invest in suitable companies that meet our investment criteria. Accomplishing this result on a cost-effective basis is largely a function of our marketing capabilities, our management of the investment process, our ability to provide efficient services and our access to financing sources on acceptable terms. In addition to monitoring the performance of our existing investments, members of our Senior Lending Team, our Executive Committee and our other investment professionals may also be called upon to provide managerial assistance to our portfolio companies. These demands on their time may distract them or slow the rate of investment. To grow, we need to continue to hire, train, supervise and

24


 
 

TABLE OF CONTENTS

manage new employees and to implement computer and other systems capable of effectively accommodating our growth. However, we cannot provide assurance that any such employees will contribute to the success of our business or that we will implement such systems effectively. Failure to manage our future growth effectively could have a material adverse effect on our business, financial condition and results of operations.

Our business model depends to a significant extent upon strong referral relationships, and our inability to maintain or further develop these relationships, as well as the failure of these relationships to generate investment opportunities, could adversely affect our business.

We expect that members of our Senior Lending Team and our Executive Committee will maintain their relationships with intermediaries, financial institutions, investment bankers, commercial bankers, financial advisors, attorneys, accountants, consultants, alliance partners, and other individuals within their networks, and we will rely, to a significant extent, upon these relationships to provide us with potential investment opportunities. If our Senior Lending Team and our Executive Committee fail to maintain its existing relationships or develop new relationships with sources of investment opportunities, we may not be able to grow our investment portfolio. In addition, individuals with whom members of our Senior Lending Team and our Executive Committee have relationships are not obligated to provide us with investment opportunities, and, therefore, there is no assurance that such relationships will generate investment opportunities for us.

Any failure on our part to maintain our status as a BDC would reduce our operating flexibility.

We have elected to be regulated as a BDC under the 1940 Act. The 1940 Act imposes numerous constraints on the operations of BDCs. For example, BDCs are required to invest at least 70% of their gross assets in specified types of securities, primarily in private companies or thinly-traded U.S. public companies, cash, cash equivalents, U.S. government securities and other high quality debt investments that mature in one year or less. Furthermore, any failure to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against us and/or expose us to claims of private litigants. In addition, upon approval of a majority of our shareholders, we may elect to withdraw our status as a BDC. If we decide to withdraw our election, or if we otherwise fail to maintain our qualification, as a BDC, we may be subject to the substantially greater regulation under the 1940 Act as a closed-end investment company. Compliance with such regulations would significantly decrease our operating flexibility, and could significantly increase our costs of doing business.

Regulations governing our operation as a BDC affect our ability to raise additional capital and the way in which we do so. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage.

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 200% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common shareholders. Continuing to expand our debt financing activities in SBA 7(a) loans will require us to raise additional capital. The failure to continue to generate such loans on a consistent basis could have a material impact on our results of operations, and accordingly, our ability to make distributions to our shareholders.

We generally may not issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock if our Board determines that such sale is in our best interests and in the best interests of our shareholders, and our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common stock or senior securities

25


 
 

TABLE OF CONTENTS

convertible into, or exchangeable for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and you may experience dilution.

Because we intend to distribute substantially all of our income to our shareholders to maintain our tax treatment as a RIC, we will continue to need additional capital to finance our growth, and regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital and make distributions.

As a RIC, we generally are required to distribute substantially all of our ordinary income to meet the Annual Distribution Requirement and the Excise Tax Avoidance Requirement (discussed below), which consequently increases the need to raise additional debt and equity capital. Furthermore, as a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss. If we issue preferred stock, the preferred stock would rank “senior” to common stock in our capital structure, preferred shareholders would have separate voting rights on certain matters and might have other rights, preferences, or privileges more favorable than those of our common shareholders, and the issuance of preferred stock could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in your best interest.

Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.

Borrowings, also known as leverage, magnify the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative investment technique.

Illustration:  The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below:

Assumed Return on Our Portfolio(1)
(net of expenses)

         
  (10)%   (5)%   0%   5%   10%
Corresponding net return to shareholders(2)     (23.09 )%      (13.60 )%      (4.11 )%      5.38 %      14.86 % 

(1) Assumes $474,895,000 in total assets, $203,728,000 in debt outstanding, $250,244,000 in net assets as of June 30, 2017, and an average cost of funds of 4.95%. Actual interest payments may be different.
(2) In order for us to cover our annual interest payments on indebtedness, we must achieve annual returns on our June 30, 2017 total assets of at least 2.17%.

Our ability to achieve our investment objective may depend in part on our ability to access additional leverage on favorable terms, and there can be no assurance that such additional leverage can in fact be achieved.

To the extent we borrow money to finance our investments, changes in interest rates will affect our cost of capital and net investment income.

To the extent we borrow money to finance investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates will not have a

26


 
 

TABLE OF CONTENTS

material adverse effect on our net investment income in the event we borrow money to finance our investments. In periods of rising interest rates, our cost of funds would increase, which could reduce our net investment income. We expect that our long-term fixed-rate investments will be financed primarily with equity and/or long-term debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. If we do not implement these techniques properly, we could experience losses on our hedging positions, which could be material. In addition, depending on the frequency and magnitude of rising interest rates, these interest rate increases could negatively impact premiums received on the sale of guaranteed SBA loans, and further, could increase prepayment speeds on outstanding SBA loans, potentially negatively impacting the Company’s financial results.

We may experience fluctuations in our quarterly and annual results.

We may experience fluctuations in our quarterly and annual operating results due to a number of factors, including our ability or inability to make investments in companies that meet our investment criteria, the interest rate payable on the debt securities we acquire, the default rate of such securities, the level of portfolio dividend and fee income, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

Our Board may change our investment objective, operating policies and strategies without prior notice or shareholder approval, the effects of which may be adverse.

Although we must obtain shareholder approval to cease to be, or withdraw our election as, a BDC, our Board has the authority to modify or waive our investment objective, current operating policies, investment criteria and strategies without prior notice and without shareholder approval. We cannot predict the effect any changes to our current operating policies, investment criteria and strategies would have on our business, net asset value, operating results and value of our stock. However, the effects might be adverse, which could negatively impact our ability to make distributions and cause shareholders to lose all or part of their investment.

We will be subject to corporate-level income tax if we are unable to maintain our treatment as a RIC or are unable to make the distributions required to maintain RIC tax treatment.

Although we have elected to be treated as a RIC commencing with our tax year ending December 31, 2015, no assurance can be given that we will be able to maintain our tax treatment as a RIC in the future. To maintain our tax treatment as a RIC, we must meet certain source-of-income, asset diversification, and distribution requirements.

The income source requirement will be satisfied if we obtain at least 90% of our income for each year from dividends, interest, gains from the sale of stock or securities or similar sources.

The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. Failure to meet those requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of our qualification as a RIC. Because most of our investments will be in private companies, and therefore will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses. The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our shareholders on an annual basis at least 90% of our net ordinary income and net short-term capital gains in excess of our net long-term capital losses, if any. Because we use debt financing, we are subject to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirement. If we are unable to obtain cash from other sources, we could fail to qualify for tax treatment as a RIC.

If we fail to qualify for RIC tax treatment for any reason and remain or become subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions. Although we have elected to be treated as a RIC

27


 
 

TABLE OF CONTENTS

commencing with our tax year ending December 31, 2015, no assurance can be given that we will be able to maintain our tax treatment as a RIC in the future.

We may not be able to pay distributions to our shareholders, our distributions may not grow over time and a portion of our distributions may be a return of capital.

We intend to pay distributions to our shareholders out of assets legally available for distribution. We cannot assure investors that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by, among other things, the impact of one or more of the risk factors described in this prospectus. In addition, the inability to satisfy the asset coverage test applicable to us as a BDC can limit our ability to pay distributions. All distributions will be paid at the discretion of our Board and will depend on our earnings, our financial condition, maintenance of our RIC status, compliance with applicable BDC regulations and such other factors as our Board may deem relevant from time to time. We cannot assure investors that we will pay distributions to our shareholders in the future.

When we make distributions, we will be required to determine the extent to which such distributions are paid out of current or accumulated earnings and profits. Distributions in excess of current and accumulated earnings and profits will be treated as a non-taxable return of capital to the extent of an investor’s basis in our stock and, assuming that an investor holds our stock as a capital asset, thereafter as a capital gain. Generally, a non-taxable return of capital will reduce an investor’s basis in our stock for federal tax purposes, which will result in higher tax liability when the stock is sold. Stockholders should read any written disclosure accompanying a distribution carefully and should not assume that the source of any distribution is our ordinary income or gains.

We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

For U.S. federal income tax purposes, we are required to include in our taxable income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we receive warrants in connection with the origination of a loan or possibly in other circumstances, or PIK interest. Such original issue discount or increases in loan balances as a result of contractual PIK arrangements will be included in our taxable income before we receive any corresponding cash payments. We also may be required to include in our taxable income certain other amounts that we will not receive in cash. Since, in certain cases, we may recognize taxable income before or without receiving corresponding cash payments, we may have difficulty meeting the Annual Distribution Requirement necessary to maintain our tax treatment as a RIC. Accordingly, to satisfy our RIC distribution requirements, we may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities. If we are not able to obtain cash from other sources, we may fail to qualify for tax treatment as a RIC and thus become subject to corporate-level income tax.

We may in the future choose to pay dividends in our own stock, in which case investors may be required to pay tax in excess of the cash they receive.

We may distribute taxable dividends that are payable in part in our stock. In accordance with certain applicable Treasury regulations and published guidance issued by the Internal Revenue Service, a RIC may treat a distribution of its own stock as fulfilling the RIC distribution requirements if each shareholder may elect to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all shareholders must be at least 20% of the aggregate declared distribution. If too many shareholders elect to receive cash, the cash available for distribution must be allocated among the shareholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any shareholder, electing to receive cash, receive less than the lesser of (a) the portion of the distribution such shareholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. Taxable shareholders receiving such dividends will be required to include the amount of the dividends as ordinary income (or as long-term

28


 
 

TABLE OF CONTENTS

capital gain to the extent such distribution is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for United States federal income tax purposes. As a result, a U.S. shareholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. shareholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. shareholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our shareholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.

Internal control deficiencies could impact the accuracy of our financial results or prevent the detection of fraud. As a result, shareholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Any failure by us to identify future deficiencies in our internal control over financial reporting in a timely manner or remediate any such deficiencies, could prevent us from accurately and timely reporting our financial results. Inferior internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

We are required to disclose changes made in our internal control and procedures on a quarterly basis and our management is required to assess the effectiveness of these controls annually. An independent assessment of the effectiveness of our internal controls could detect problems that our management’s assessment might not. Undetected material weaknesses in our internal controls could lead to financial statement restatements and require us to incur the expense of remediation. In the event that we are unable to maintain or achieve compliance with Section 404 of the Sarbanes-Oxley Act and related rules, the market price of our common stock may be adversely affected.

Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.

We and our portfolio companies will be subject to applicable local, state and federal laws and regulations, including, without limitation, federal immigration laws and regulations. New legislation may be enacted or new interpretations, rulings or regulations could be adopted, including those governing the types of investments we are permitted to make, any of which could harm us and our shareholders, potentially with retroactive effect. Additionally, any changes to the laws and regulations governing our operations relating to permitted investments may cause us to alter our investment strategy in order to avail ourselves of new or different opportunities. Such changes could result in material differences to the strategies and plans set forth herein and may result in our investment focus shifting from the areas of expertise of our Senior Lending Team and our Executive Committee to other types of investments in which our Senior Lending Team and our Executive Committee may have less expertise or little or no experience. Thus, any such changes, if they occur, could have a material adverse effect on our results of operations and the value of your investment.

NSBF, our wholly-owned subsidiary, is subject to regulation by the SBA.

Our wholly-owned subsidiary, NSBF, is licensed by the SBA as a Small Business Lending Company (“SBLC”). In order to operate as an SBLC, a licensee is required to maintain a minimum regulatory capital (as defined by SBA regulations) of the greater of (1) 10% of its outstanding loans receivable and other investments or (2) $1.0 million. Moreover, before consenting to a securitization, NSBF and other securitizers must be considered well capitalized by the SBA. For NSBF and other SBLC securitizers, the SBA will consider it well capitalized if it maintains a minimum unencumbered paid in capital and paid in surplus equal to at least 10 percent of its assets, excluding the guaranteed portion of 7(a) loans. In addition, an SBLC is

29


 
 

TABLE OF CONTENTS

subject to certain other regulatory restrictions. Among other things, SBLCs are required to: establish, adopt, and maintain a formal written capital plan; submit to the SBA for review a credit policy that demonstrates the SBLC’s compliance with the applicable regulations and the SBA’s Standard Operating Procedures for origination, servicing and liquidation of 7(a) loans; submit to the SBA for review and approval annual validation, with supporting documentation and methodologies, demonstrating that any scoring model used by the SBLC is predictive of loan performance; obtain SBA approval for loan securitization and borrowings; and adopt and fully implement an internal control policy which provides adequate direction for effective control over and accountability for operations, programs, and resources.

We have specific risks associated with SBA loans.

We have generally sold the guaranteed portion of SBA loans in the secondary market. Such sales have resulted in our earning premiums and creating a stream of servicing income. There can be no assurance that we will be able to continue originating these loans, or that a secondary market will exist for, or that we will continue to realize premiums upon the sale of the guaranteed portions of the SBA 7(a) loans.

If NSBF fails to comply with SBA regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, liability on the SBA guaranty, in whole or part, could be transferred to NSBF.

Since we sell the guaranteed portion of substantially all of our SBA 7(a) loan portfolio, we retain credit risk on the non-guaranteed portion of the SBA loans. We share pro rata with the SBA in any recoveries. In the event of default on an SBA loan, our pursuit of remedies against a borrower is subject to SBA approval.

If we fail to comply with certain of the SBA’s regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, the SBA may be released from liability on its guaranty of a 7(a) loan, and may refuse to honor a guaranty purchase request in full (referred to by SBA as a “denial”) or in part (referred to by SBA as a “repair”), or recover all or part of the funds already paid in connection with a guaranty purchase. In the event of a repair or denial, liability on the guaranty, in whole or part, would be transferred to NSBF. In addition, the growth in the number of loans made by NSBF, changes in SBA regulations and economic factors may adversely impact our current repair and denial rate.

Curtailment of the government-guaranteed loan programs could adversely affect our results of operations.

Although the program has been in existence since 1953, there can be no assurance that the federal government will maintain the SBA 7(a) loan program, or that it will continue to guarantee loans at current levels. If we cannot continue originating and selling government-guaranteed loans, we will generate fewer origination fees and our ability to generate gains on the sale of loans will decrease. From time-to-time, the government agencies that guarantee these loans reach their internal budgeted limits and cease to guarantee loans for a stated time period. In addition, these agencies may change their rules for extending loans. Also, Congress may adopt legislation that would have the effect of discontinuing or changing the SBA’s programs. Non-governmental programs could replace government programs for some borrowers, but the terms might not be equally acceptable. If these changes occur, the volume of loans to SMBs and industrial borrowers of the types that now qualify for government-guaranteed loans could decline, as could the profitability of these loans.

Additionally, under current law, SBA 7(a) lenders must share equally with the SBA any SBA 7(a) loan premium in excess of 110% of the par value of such loans. Legislation pending in the U.S. Senate would, among other things, require SBA 7(a) lenders to share equally with the SBA any SBA 7(a) loan premium in excess of 108% of the par value of such loans, thereby decreasing the share of loan premium received by the SBA 7(a) lender. Such legislation also would impose a new fee of 3 basis points on the guaranteed portion of the SBA 7(a) loan. If passed in its present form, the legislation could serve to negatively impact the profitability of SBA 7(a) loans and our financial performance and results of operations.

Curtailment of our ability to utilize the SBA 7(a) Loan Program by the Federal government could adversely affect our results of operations.

We are dependent upon the federal government to maintain the SBA 7(a) Program. There can be no assurance that the program will be maintained or that loans will continue to be guaranteed at current levels. From time-to-time the SBA has reached its internal budgeted limits and ceased to guarantee loans for a stated

30


 
 

TABLE OF CONTENTS

period of time. In addition, the SBA may change its rules regarding loans or Congress may adopt legislation or fail to approve a budget that would have the effect of discontinuing, reducing availability of funds for, or changing loan programs. Non-governmental programs could replace government programs for some borrowers, but the terms might not be equally acceptable. If these changes occur, the volume of loans to small businesses that now qualify for government guaranteed loans could decline, as could the profitability of these loans.

NSBF’s failure to maintain PLP status or maintain its SBA 7(a) license could adversely affect our results of operation.

NSBF has been granted PLP status and originates, sells and services small business loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national lender, PLP status allows NSBF to expedite loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status could adversely impact our marketing efforts and ultimately loan origination volume which could negatively impact our results of operations.

There can be no assurance that NSBF will be able to maintain its status as a PLP or that NSBF can maintain its SBA 7(a) license. If NSBF cannot continue originating and selling government guaranteed loans at current levels, we could experience a decrease in future servicing spreads and earned premiums and negatively impact our results of operations.

Our loans under the Section 7(a) Loan Program involve a high risk of default and such default could adversely impact our results of operations.

Loans to small businesses involve a high risk of default. Such loans are generally not rated by any statistical rating organization. Small businesses usually have smaller product lines and market shares than larger companies and therefore may be more vulnerable to competition and general economic conditions. These businesses’ success typically depends on their management talents and efforts of one person or a small group of persons whose death, disability or resignation would adversely affect the business. Because these businesses frequently have highly leveraged capital structures, reduced cash flow resulting from economic downturns can severely impact the businesses’ ability to meet their obligations, which could impact our results of operations. The portions of Section 7(a) loans to be retained by the Company do not benefit directly from any SBA guarantees; in an event of default, however, the Company and the SBA typically cooperate in collateral foreclosure or other work-out efforts and share in any resulting collections.

The loans we make under the Section 7(a) Loan Program face competition.

There are several other non-bank lenders as well as a large number of banks that participate in the SBA Section 7(a) Loan Program. All of these participants compete for the business of eligible borrowers. In addition, pursuant to the 1940 Act, the Company is limited as to the amount of indebtedness it may have. Accordingly, the Company may be at a competitive disadvantage with regard to other lenders or financial institutions that may be able to achieve greater leverage at a lower cost.

Our business is subject to increasingly complex corporate governance, public disclosure and accounting requirements that are costly and could adversely affect our business and financial results.

We are subject to changing rules and regulations of federal and state government as well as the stock exchange on which our common stock is listed. These entities, including the Public Company Accounting Oversight Board, the SEC and the Nasdaq Global Market, have issued a significant number of new and increasingly complex requirements and regulations over the course of the last several years and continue to develop additional regulations and requirements in response to laws enacted by Congress. Our efforts to comply with existing requirements, or any revised or amended requirements, have resulted in, and may continue to result in, an increase in expenses and a diversion of management’s time from other business activities.

In addition, our failure to keep pace with any such rules, or for our management to appropriately address compliance with such rules fully and in a timely manner, exposes us to an increasing risk of inadvertent non-compliance. While our management team takes reasonable efforts to ensure that the Company is in full

31


 
 

TABLE OF CONTENTS

compliance with all laws applicable to its operations, the increasing rate and extent of regulatory change increases the risk of a failure to comply, which may result in our ability to operate our business in the ordinary course or may subject us to potential fines, regulatory findings or other matters that may materially impact our business.

If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending and investment activities, our net asset value could decrease and our level of distributions and liquidity could be affected adversely.

Our ability to secure additional financing and satisfy our financial obligations under indebtedness outstanding from time to time will depend upon our future operating performance, which is subject to the prevailing general economic and credit market conditions, including interest rate levels and the availability of credit generally, and financial, business and other factors, many of which are beyond our control. The prolonged continuation or worsening of current economic and capital market conditions could have a material adverse effect on our ability to secure financing on favorable terms, if at all.

If we are unable to obtain additional debt capital, then our equity investors will not benefit from the potential for increased returns on equity resulting from leverage to the extent that our investment strategy is successful and we may be limited in our ability to make new commitments or fundings to our portfolio companies.

Capital markets may experience periods of disruption and instability and we cannot predict when these conditions will occur. Such market conditions could materially and adversely affect debt and equity capital markets in the United States and abroad, which could have a negative impact on our business, financial condition and results of operations.

As a BDC, we must maintain our ability to raise additional capital for investment purposes. Without sufficient access to the capital markets or credit markets, we may be forced to curtail our business operations or we may not be able to pursue new business opportunities.

The U.S. and global capital markets experienced extreme volatility and disruption during the economic downturn that began in mid-2007, and the U.S. economy was in a recession for several consecutive calendar quarters during the same period. In 2010, a financial crisis emerged in Europe, triggered by high budget deficits and rising direct and contingent sovereign debt, which created concerns about the ability of certain nations to continue to service their sovereign debt obligations. Risks resulting from such debt crisis, including any austerity measures taken in exchange for the bail out of certain nations, and any future debt crisis in Europe or any similar crisis elsewhere could have a detrimental impact on the global economic recovery, sovereign and non-sovereign debt in certain countries and the financial condition of financial institutions generally. In June 2016, the United Kingdom held a referendum in which voters approved an exit from the European Union (“Brexit”), and, accordingly, on February 1, 2017, the U.K. Parliament voted in favor of allowing the U.K. government to begin the formal process of Brexit. Brexit created political and economic uncertainty and instability in the global markets (including currency and credit markets), and especially in the United Kingdom and the European Union, and this uncertainty and instability may last indefinitely. There is continued concern about national-level support for the Euro and the accompanying coordination of fiscal and wage policy among European Economic and Monetary Union member countries. In addition, the fiscal and monetary policies of foreign nations, such as Russia and China, may have a severe impact on the worldwide and U.S. financial markets.

Additionally, as a result of the 2016 U.S. election, the Republican Party currently controls both the executive and legislative branches of government, which increases the likelihood that legislation may be adopted that could significantly affect the regulation of U.S. financial markets. Areas subject to potential change, amendment, or repeal include the Dodd-Frank Act and the authority of the Federal Reserve and the Financial Stability Oversight Council. The U.S. may also potentially withdraw from or renegotiate various trade agreements and take other actions that would change current trade policies of the U.S. We cannot predict which, if any, of these actions will be taken or, if taken, their effect on the financial stability of the U.S. Such actions could have a significant adverse effect on our business, financial condition and results of operations. We cannot predict the effects of these or similar events in the future on the U.S. economy and securities

32


 
 

TABLE OF CONTENTS

markets or on our investments. We monitor developments and seek to manage our investments in a manner consistent with achieving our investment objective, but there can be no assurance that we will be successful in doing so.

A failure or the perceived risk of a failure to raise the statutory debt limit of the U.S. could have a material adverse effect on our business, financial condition and results of operations.

Recent U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the U.S. In the future, the U.S. government may not be able to meet its debt payments unless the federal debt ceiling is raised. If legislation increasing the debt ceiling is not enacted, as needed, and the debt ceiling is reached, the U.S. federal government may stop or delay making payments on its obligations, which could negatively impact the U.S. economy and our portfolio companies. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time. Continued adverse political and economic conditions could have a material adverse effect on our business, financial condition and results of operations.

We are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our securities and our ability to make distributions to our shareholders.

Our business is highly dependent on our communications and information systems. Certain of these systems are provided to us by third party service providers. Any failure or interruption of such systems, including as a result of the termination of an agreement with any such third party service provider, could cause delays or other problems in our activities. This, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our securities and our ability to make distributions to our shareholders.

Terrorist attacks, acts of war or natural disasters may affect any market for our securities, impact the businesses in which we invest and harm our business, operating results and financial condition.

Terrorist acts, acts of war or natural disasters may disrupt our operations, as well as the operations of the businesses in which we invest. Such acts have created, and continue to create, economic and political uncertainties and have contributed to global economic instability. Future terrorist activities, military or security operations, or natural disasters could further weaken the domestic/global economies and create additional uncertainties, which may negatively impact the businesses in which we invest directly or indirectly and, in turn, could have a material adverse impact on our business, operating results and financial condition. Losses from terrorist attacks and natural disasters are generally uninsurable.

We could be adversely affected by information security breaches or cyber security attacks.

Our business operations and our portfolio companies’ business operations rely upon secure information technology systems for data processing, storage and reporting. Despite careful security and controls design, implementation and updating, such information technology systems could become subject to cyber-attacks. Network, system, application and data breaches could result in operational disruptions or information misappropriation, which could have a material adverse effect on our business, results of operations and financial condition.

In addition, our business operations and our portfolio companies’ business operations involve the storage and transmission of Newtek, portfolio company, customer and employee proprietary information. Our businesses rely on our digital technologies, computer and email systems, software, and networks to conduct operations. Our technologies, systems and networks may become the target of criminal cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information of us, our portfolio companies, or third parties with whom we and our portfolio companies deal, or otherwise disrupt our or our customers’ or other third parties’ business operations. It is critical to our business strategy that our facilities and infrastructure remain secure and are perceived by the marketplace to be secure. Although we employ appropriate security technologies (including data encryption processes, intrusion detection systems), and conduct comprehensive

33


 
 

TABLE OF CONTENTS

risk assessments and other internal control procedures to assure the security of our and our customers’ data, we cannot guarantee that these measures will be sufficient for this purpose. If our security measures are breached as a result of third-party action, employee error or otherwise, and as a result our or our customers’ data becomes available to unauthorized parties, we could incur liability and our reputation would be damaged, which could lead to the loss of current and potential customers. If we experience any breaches of our network security or sabotage, we might be required to expend significant capital and other resources to detect, remedy, protect against or alleviate these and related problems, and we may not be able to remedy these problems in a timely manner, or at all. Because techniques used by outsiders to obtain unauthorized network access or to sabotage systems change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures. As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities. Although we have insurance in place that covers such incidents, the cost of a breach or cyber-attack could well exceed any such insurance coverage.

The failure in cyber-security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.

The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in our disaster recovery systems, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on our results of operations and financial condition, particularly if those events affect our computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of our managers were unavailable in the event of a disaster, our ability to effectively conduct our business could be severely compromised.

We and our portfolio companies depend heavily upon computer systems to perform necessary business functions. Despite our portfolio companies implementation of a variety of security measures, our computer systems could be subject to cyber-attacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. Like other companies, we and our portfolio companies may experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our and our portfolio company computer systems and networks, or otherwise cause interruptions or malfunctions in our operations, which could result in damage to our and our portfolio companies’ reputation, financial losses, litigation, increased costs, regulatory penalties and/or customer dissatisfaction or loss.

RISKS RELATING TO OUR INVESTMENTS GENERALLY

Our investments are very risky and highly speculative.

We invest primarily in senior secured term loans and select equity investments issued by companies, some of which are highly leveraged. The majority of senior secured loans are SBA 7(a) loans and the majority of equity investments are comprised of controlled affiliate equity investments.

Senior Secured Loans.  There is a risk that the collateral securing our loans, in most cases real estate, may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital, and, in some circumstances, our lien could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company’s financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies. In some cases we may take second lien position on additional business or personal assets to secure further our first lien positions.

Equity Investments.  We occasionally invest directly in the equity securities of portfolio companies. The equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we

34


 
 

TABLE OF CONTENTS

may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

In addition, investing in SMBs involves a number of significant risks, including:

these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees we may have obtained in connection with our investment;
they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns;
they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us;
they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;
they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity; and
our executive officers and directors may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies.

An investment strategy focused primarily on smaller privately held companies involves a high degree of risk and presents certain challenges, including the lack of available information about these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns.

Our portfolio consists primarily of debt and equity investments in smaller privately-owned companies. Investing in these types of companies involves a number of significant risks. Typically, the debt in which we invest is not initially rated by any rating agency; however, we believe that if such investments were rated, they would be below investment grade. Below investment grade securities, which are often referred to as “high yield” or “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Compared to larger publicly-owned companies, these small companies may be in a weaker financial position and experience wider variations in their operating results, which may make them more vulnerable to economic downturns. Typically, these companies need more capital to compete; however, their access to capital is limited and their cost of capital is often higher than that of their competitors. Our portfolio companies often face intense competition from larger companies with greater financial, technical and marketing resources and their success typically depends on the managerial talents and efforts of an individual or a small group of persons. Therefore, any loss of its key employees could affect a portfolio company’s ability to compete effectively and harm its financial condition. Further, some of these companies conduct business in regulated industries that are susceptible to regulatory changes. These factors could impair the cash flow of our portfolio companies and result in other events, such as bankruptcy. These events could limit a portfolio company’s ability to repay its obligations to us, which may have an adverse effect on the return on, or the recovery of, our investment in these businesses. Deterioration in a borrower’s financial condition and prospects may be accompanied by deterioration in the value of the loan’s collateral.

Generally, little public information exists about these companies, and we are required to rely on the ability of our Senior Lending Team and our Executive Committee to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investments. Also, privately held companies frequently have less diverse product lines and smaller market

35


 
 

TABLE OF CONTENTS

presence than larger competitors. These factors could adversely affect our investment returns as compared to companies investing primarily in the securities of public companies.

Our investments in leveraged portfolio companies may be risky, and you could lose all or part of your investment.

Investment in leveraged companies involves a number of significant risks. Leveraged companies in which we invest may have limited financial resources and may be unable to meet their obligations under their loans and debt securities that we hold. Such developments may be accompanied by deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees that we may have obtained in connection with our investment. Smaller leveraged companies also may have less predictable operating results and may require substantial additional capital to support their operations, finance their expansion or maintain their competitive position.

Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

Our portfolio companies may have, or may be permitted to incur, other debt that ranks equally with, or in some cases senior to, the debt in which we invest. By their terms, such debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have sufficient remaining assets to repay its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

Second priority liens on collateral securing loans that we make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us.

Certain loans that we make are secured by a second priority security interest in the same collateral pledged by a portfolio company to secure senior first lien debt owed by the portfolio company to commercial banks or other traditional lenders. Often the senior lender has procured covenants from the portfolio company prohibiting the incurrence of additional secured debt without the senior lender’s consent. Prior to and as a condition of permitting the portfolio company to borrow money from us secured by the same collateral pledged to the senior lender, the senior lender will require assurances that it will control the disposition of any collateral in the event of bankruptcy or other default. In many such cases, the senior lender will require us to enter into an “intercreditor agreement” prior to permitting the portfolio company to borrow from us. Typically the intercreditor agreements we will be requested to expressly subordinate our debt instruments to those held by the senior lender and further provide that the senior lender shall control: (1) the commencement of foreclosure or other proceedings to liquidate and collect on the collateral; (2) the nature, timing and conduct of foreclosure or other collection proceedings; (3) the amendment of any collateral document; (4) the release of the security interests in respect of any collateral; and (5) the waiver of defaults under any security agreement. Because of the control we may cede to senior lenders under intercreditor agreements we may enter, we may be unable to realize the proceeds of any collateral securing some of our loans.

If we make subordinated investments, the obligors or the portfolio companies may not generate sufficient cash flow to service their debt obligations to us.

We may make subordinated investments that rank below other obligations of the obligor in right of payment. Subordinated investments are subject to greater risk of default than senior obligations as a result of adverse changes in the financial condition of the obligor or economic conditions in general. If we make a subordinated investment in a portfolio company, the portfolio company may be highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that its operations might not generate sufficient cash flow to service all of its debt obligations.

36


 
 

TABLE OF CONTENTS

The disposition of our investments may result in contingent liabilities.

We currently expect that substantially all of our investments will involve loans and private securities. In connection with the disposition of an investment in loans and private securities, we may be required to make representations about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business. We may also be required to indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate or with respect to potential liabilities. These arrangements may result in contingent liabilities that ultimately result in funding obligations that we must satisfy through our return of distributions previously made to us.

There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.

Even though we may have structured certain of our investments as secured loans, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, and based upon principles of equitable subordination as defined by existing case law, a bankruptcy court could subordinate all or a portion of our claim to that of other creditors and transfer any lien securing such subordinated claim to the bankruptcy estate. The principles of equitable subordination defined by case law have generally indicated that a claim may be subordinated only if its holder is guilty of misconduct or where the senior loan is re-characterized as an equity investment and the senior lender has actually provided significant managerial assistance to the bankrupt debtor. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender’s liability claim, including as a result of actions taken in rendering significant managerial assistance or actions to compel and collect payments from the borrower outside the ordinary course of business.

Economic recessions could impair our portfolio companies and harm our operating results.

Certain of our portfolio companies may be susceptible to an economic downturn and may be unable to repay our loans during this period. Therefore, assets may become non-performing and the value of our portfolio may decrease during this period. The adverse economic conditions also may decrease the value of collateral securing some of our loans and the value of our equity investments. A recession could lead to financial losses in our portfolio and a decrease in revenues, net income and the value of our assets.

The lack of liquidity in our investments may adversely affect our business.

We generally invest in companies whose securities are not publicly traded, and whose securities will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. There is no established trading market for the securities in which we invest. The illiquidity of these investments may make it difficult for us to sell these investments when desired. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded these investments. As a result, we do not expect to achieve liquidity in our investments in the near-term. Further, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public information regarding such portfolio company.

Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” investments, in order to: (1) increase or maintain in whole or in part our equity ownership percentage; (2) exercise warrants, options or convertible securities that were acquired in the original or a subsequent financing; or (3) attempt to preserve or enhance the value of our investment. We may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments. We will have the discretion to make any follow-on investments, subject to the availability of capital resources. The failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our

37


 
 

TABLE OF CONTENTS

participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we do not want to increase our concentration of risk, we prefer other opportunities, we are subject to BDC requirements that would prevent such follow-on investments, or the follow-on investment would affect our qualification as a RIC.

Our portfolio may lack diversification among portfolio companies which may subject us to a risk of significant loss if one or more of these companies default on its obligations under any of its debt instruments.

Our portfolio holds a limited number of controlled affiliate portfolio companies. Beyond the asset diversification requirements associated with our qualification as a RIC under the Code, we do not have fixed guidelines for diversification, and our investments may be concentrated in relatively few companies. As our portfolio is less diversified than the portfolios of some larger funds, we are more susceptible to failure if a single loan fails. Similarly, the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment.

We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we may invest a significant portion of our assets in a relatively small number of issuers, which subjects us to a risk of significant loss if any of these issuers defaults on its obligations under any of its debt instruments or as a result of a downturn in the particular industry.

We are classified as a non-diversified investment company within the meaning of the 1940 Act, and therefore we may invest a significant portion of our assets in a relatively small number of issuers in a limited number of industries. As of June 30, 2017, our three largest investments, Newtek Merchant Solutions, Newtek Technology Solutions and Newtek Payments Solutions equaled approximately 13%, 4% and 4%, respectively, of the fair value of our total assets. Beyond the asset diversification requirements associated with our qualification as a RIC, we do not have fixed guidelines for diversification, and while we are not targeting any specific industries, relatively few industries may become significantly represented among our investments. To the extent that we assume large positions in the securities of a small number of issuers, our net asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer, changes in fair value over time or a downturn in any particular industry. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company.

Our portfolio may be concentrated in a limited number of industries, which may subject us to a risk of significant loss if there is a downturn in a particular industry in which a number of our investments are concentrated.

Our portfolio may be concentrated in a limited number of industries. A downturn in any particular industry in which we are invested could significantly impact the aggregate returns we realize. If an industry in which we have significant investments suffers from adverse business or economic conditions, as these industries have to varying degrees, a material portion of our investment portfolio could be affected adversely, which, in turn, could adversely affect our financial position and results of operations.

Because we may not hold controlling equity interests in certain of our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.

We do not currently hold controlling equity positions in the majority of our portfolio companies where our investments are in the form of debt, particularly SBA loans. As a result, we are subject to the risk that a portfolio company may make business decisions with which we disagree, and that the management and/or shareholders of a portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity of the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company and may therefore suffer a decrease in the value of our investments.

Defaults by our portfolio companies will harm our operating results.

A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured assets, which

38


 
 

TABLE OF CONTENTS

could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. Any extension or restructuring of our loans could adversely affect our cash flows. In addition, if one of our portfolio companies were to go bankrupt, even though we may have structured our interest as senior debt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt holding and subordinate all or a portion of our claim to that of other creditors. If any of these occur, it could materially and adversely affect our operating results and cash flows.

If we and our portfolio companies are unable to protect our intellectual property rights, our business and prospects could be harmed, and if we and our portfolio companies are required to devote significant resources to protecting their intellectual property rights, the value of our investment could be reduced.

The proprietary software essential to our business and that of our controlled portfolio companies is owned by us and made available to them for their use. Our future success and competitive position will depend in part upon our ability to maintain and protect proprietary technology used in our products and services. We will rely, in part, on patent, trade secret and trademark law to protect that technology, but competitors may misappropriate our intellectual property, and disputes as to ownership of intellectual property may arise. We may, from time to time, be required to institute litigation to enforce the patents, copyrights or other intellectual property rights, protect trade secrets, determine the validity and scope of the proprietary rights of others or defend against claims of infringement. Such litigation could result in substantial costs and diversion of resources.

Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.

We will be subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity; most of our SBA loans do not carry prepayment penalties. When this occurs, we will generally reinvest these proceeds in temporary investments or repay outstanding debt, depending on future investment in new portfolio companies. Temporary investments will typically have substantially lower yields than the debt being prepaid and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our securities.

We may not realize gains from our equity investments.

Certain investments that we may make in the future include warrants or other equity securities. Investments in equity securities involve a number of significant risks, including the risk of further dilution as a result of additional issuances, inability to access additional capital and failure to pay current distributions. Investments in preferred securities involve special risks, such as the risk of deferred distributions, credit risk, illiquidity and limited voting rights. In addition, we may from time to time make non-control, equity investments in portfolio companies. Our goal is ultimately to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the underlying equity interests. We will often seek puts or similar rights to give us the right to sell our equity securities back to the portfolio company issuer. We may be unable to exercise these puts rights for the consideration provided in our investment documents if the issuer is in financial distress.

We may expose ourselves to risks if we engage in hedging transactions.

If we engage in hedging transactions, we may expose ourselves to certain risks associated with such transactions. We may utilize instruments such as forward contracts, currency options and interest rate swaps,

39


 
 

TABLE OF CONTENTS

caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates and market interest rates. Hedging against a decline in the values of our portfolio positions does not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions decline. However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions may also limit the opportunity for gain if the values of the underlying portfolio positions increase. It may not be possible to hedge against an exchange rate or interest rate fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at an acceptable price. Moreover, for a variety of reasons, we may not seek to establish a perfect correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a result of factors not related to currency fluctuations.

An increase in non-performing assets would reduce our income and increase our expenses.

If our level of non-performing assets in our SBA lending business rises in the future, it could adversely affect our investment income and earnings. Non-performing assets are primarily loans on which borrowers are not making their required payments. Non-performing assets also include loans that have been restructured to permit the borrower to have smaller payments and real estate that has been acquired through foreclosure of unpaid loans. To the extent that our financial assets are non-performing, we will have less cash available for lending and other activities.

If the assets securing the loans that we make decrease in value, then we may lack sufficient collateral to cover losses.

To attempt to mitigate credit risks, we will typically take a security interest in the available assets of our portfolio companies. There is no assurance that we will obtain or properly perfect our liens. There is a risk that the collateral securing our loans may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of a portfolio company to raise additional capital. In some circumstances, our lien could be subordinated to claims of other creditors. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or that we will be able to collect on the loan should we be forced to enforce our remedies.

In addition, because we may invest in technology-related companies, a substantial portion of the assets securing our investment may be in the form of intellectual property, if any, inventory and equipment and, to a lesser extent, cash and accounts receivable. Intellectual property, if any, that is securing our loan could lose value if, among other things, the company’s rights to the intellectual property are challenged or if the company’s license to the intellectual property is revoked or expires, the technology fails to achieve its intended results or a new technology makes the intellectual property functionally obsolete. Inventory may not be adequate to secure our loan if our valuation of the inventory at the time that we made the loan was not accurate or if there is a reduction in the demand for the inventory.

Similarly, any equipment securing our loan may not provide us with the anticipated security if there are changes in technology or advances in new equipment that render the particular equipment obsolete or of limited value, or if the company fails to adequately maintain or repair the equipment. Any one or more of the preceding factors could materially impair our ability to recover principal in a foreclosure.

We could be adversely affected by weakness in the residential housing and commercial real estate markets.

Continued weakness in residential home and commercial real estate values could impair our ability to collect on defaulted SBA loans as real estate is pledged in many of our SBA loans as part of the collateral package.

40


 
 

TABLE OF CONTENTS

RISKS RELATING TO OUR CONTROLLED PORTFOLIO COMPANIES — NEWTEK MERCHANT SOLUTIONS (NMS) AND NEWTEK PAYMENT SOLUTIONS (PREMIER PAYMENTS)

We could be adversely affected if either of NMS’ two bank sponsors is terminated.

Because NMS is not a bank, it is unable to belong to and directly access the Visa® and MasterCard® bankcard associations. The Visa® and MasterCard® operating regulations require NMS to be sponsored by a bank in order to process bankcard transactions. A bank sponsorship is an agreement under which a financial institution that has a membership with MasterCard®, Visa® or American Express sponsors an independent sales organization, like NMS, that markets credit card processing services to merchants who accept credit cards as a form of payment, gains access to the Visa®, MasterCard®, and American Express networks. NMS is currently sponsored by two banks. If either of the sponsorships is terminated, and NMS is not able to secure or transfer the respective merchant portfolio to a new bank sponsor or sponsors, the business, financial condition, results of operations and cash flows of the electronic payment processing business could be materially adversely affected. If both the sponsorships are terminated and NMS is unable to secure a bank sponsor for the merchant portfolios, it will not be able to process bankcard transactions for the affected portfolios. Consequently, the loss of both of NMS’ sponsorships would have a material adverse effect on our business. Furthermore, NMS’ agreements with sponsoring banks gives the sponsoring banks substantial discretion in approving certain elements of its business practices, including its solicitation, application and qualification procedures for merchants, the terms of their agreements with merchants, the processing fees that they charge, their customer service levels and its use of independent sales organizations and independent sales agents. We cannot guarantee that NMS’ sponsoring banks’ actions under these agreements would not be detrimental to us.

Other service providers, some of whom are NMS’ competitors, are necessary for the conduct of NMS’ business. The termination by service providers of these arrangements with NMS or their failure to perform these services efficiently and effectively may adversely affect NMS’ relationships with the merchants whose accounts it serves and may cause those merchants to terminate their processing agreements with NMS.

If NMS or its processors or bank sponsors fail to adhere to the standards of the Visa® and MasterCard® bankcard associations, its registrations with these associations could be terminated and it could be required to stop providing payment processing services for Visa® and MasterCard®.

Substantially all of the transactions NMS processes involve Visa® or MasterCard®. If NMS, its bank sponsors or its processors fail to comply with the applicable requirements of the Visa® and MasterCard® bankcard associations, Visa® or MasterCard® could suspend or terminate its registration. The termination of NMS’ registration or any changes in the Visa® or MasterCard® rules that would impair its registration could require it to stop providing payment processing services, which would have a material adverse effect on its business and could be detrimental to us.

On occasion, NMS experiences increases in interchange and sponsorship fees. If it cannot pass along these increases to its merchants, its profit margins will be reduced.

NMS pays interchange fees or assessments to bankcard associations for each transaction it processes using their credit, debit and gift cards. From time to time, the bankcard associations increase the interchange fees that they charge processors and the sponsoring banks, which generally pass on such increases to NMS. From time to time, the sponsoring banks increase their fees as well. If NMS is not able to pass these fee increases along to merchants through corresponding increases in its processing fees, its profit margins in this line of business will be reduced.

Unauthorized disclosure of merchant or cardholder data, whether through breach of our computer systems or otherwise, could expose us to liability and business losses.

Through NMS, we collect and store sensitive data about merchants and cardholders, and we maintain a database of cardholder data relating to specific transactions, including payment, card numbers and cardholder addresses, in order to process the transactions and for fraud prevention and other internal processes. If anyone penetrates our network security or otherwise misappropriates sensitive merchant or cardholder data, we could be subject to liability or business interruption. While we subject these systems to periodic independent testing

41


 
 

TABLE OF CONTENTS

and review, we cannot guarantee that our systems will not be penetrated in the future. If a breach of our system occurs, we may be subject to liability, including claims for unauthorized purchases with misappropriated card information, impersonation or other similar fraud claims. Similar risks exist with regard to the storage and transmission of such data by our processors. In the event of any such a breach, we may also be subject to a class action lawsuit. SMBs are less prepared for the complexities of safeguarding cardholder data than their larger counterparts. In the event of noncompliance by a customer of card industry rules, we could face fines from payment card networks. There can be no assurance that we would be able to recover any such fines from such customer.

NMS is liable if its processing merchants refuse or cannot reimburse charge-backs resolved in favor of their customers.

If a billing dispute between a merchant and a cardholder is not ultimately resolved in favor of the merchant, the disputed transaction is “charged back” to the merchant’s bank and credited to the account of the cardholder. If NMS or its processing banks are unable to collect the charge-back from the merchant’s account, or if the merchant refuses or is financially unable due to bankruptcy or other reasons to reimburse the merchant’s bank for the charge-back, NMS must bear the loss for the amount of the refund paid to the cardholder’s bank. Most of NMS’ merchants deliver products or services when purchased, so a contingent liability for charge-backs is unlikely to arise, and credits are issued on returned items. However, some of its merchants do not provide services until sometime after a purchase, which increases the potential for contingent liability and future charge backs. NMS and the sponsoring bank can require that merchants maintain cash reserves under its control to cover charge back liabilities but such reserves may not be sufficient to cover the liability or may not even be available to them in the event of a bankruptcy or other legal action.

NMS has potential liability for customer or merchant fraud.

Credit card fraud occurs when a merchant’s customer uses a stolen card (or a stolen card number in a card-not-present transaction) to purchase merchandise or services. In a traditional card-present transaction, if the merchant swipes the card, receives authorization for the transaction from the card issuing bank and verifies the signature on the back of the card against the paper receipt signed by the customer, the card issuing bank remains liable for any loss. In a fraudulent card-not-present transaction, even if the merchant receives authorization for the transaction, the merchant is liable for any loss arising from the transaction. Many NMS customers are small and transact a substantial percentage of their sales over the Internet or by telephone or mail orders. Because their sales are card-not-present transactions, these merchants are more vulnerable to customer fraud than larger merchants, and NMS could experience charge-backs arising from cardholder fraud more frequently with these merchants.

Merchant fraud occurs when a merchant, rather than a customer, knowingly uses a stolen or counterfeit card or card number to record a false sales transaction or intentionally fails to deliver the merchandise or services sold in an otherwise valid transaction. Anytime a merchant is unable to satisfy a charge-back, NMS is ultimately responsible for that charge-back unless it has required that a cash reserve be established. We cannot assure that the systems and procedures NMS has established to detect and reduce the impact of merchant fraud are or will be effective. Failure to effectively manage risk and prevent fraud could increase NMS charge-back liability and adversely affect its results of operations.

NMS payment processing systems may fail due to factors beyond its control, which could interrupt its business or cause it to lose business and likely increase costs.

NMS depends on the uninterrupted operations of our computer network systems, software and our processors’ data centers. Defects in these systems or damage to them due to factors beyond its control could cause severe disruption to NMS’ business and other material adverse effects on its payment processing businesses.

The electronic payment processing business is undergoing very rapid technological changes which may make it difficult or impossible for NMS or Premier Payments to compete effectively.

The introduction of new technologies, primarily mobile payment capabilities, and the entry into the payment processing market of new competitors, Apple, Inc., for example, could dramatically change the

42


 
 

TABLE OF CONTENTS

competitive environment and require significant changes and costs for NMS to remain competitive. There is no assurance that NMS or Premier will have the capability to stay competitive with such changes.

NMS and others in the payment processing industry have come under increasing pressures from various regulatory agencies seeking to use the leverage of the payment processing business to limit or modify the practices of merchants which could lead to increased costs.

Various agencies, particularly the Federal Trade Commission, have within the past few years attempted to pressure merchants to discontinue or modify various sales or other practices. As a part of the payment processing industry, processors such as NMS could experience pressure and/or litigation aimed at restricting access to credit card sales by such merchants. These efforts could cause an increase in the cost to NMS of doing business or otherwise make its business less profitable and may subject NMS to assess penalties for not taking actions deemed sufficiently aggressive to limit such practices.

Increased regulatory focus on the payments industry may result in costly new compliance burdens on NMS’ clients and on NMS itself, leading to increased costs and decreased payments volume and revenues.

Regulation of the payments industry has increased significantly in recent years. Complying with these and other regulations increases costs and can reduce revenue opportunities. Similarly, the impact of such regulations on clients may reduce the volume of payments processed. Moreover, such regulations can limit the types of products and services that are offered. Any of these occurrences can materially and adversely affect NMS’ business, prospects for future growth, financial condition and results of operations.

Examples include:

Data Protection and Information Security.  Aspects of NMS’ operations and business are subject to privacy and data protection regulation. NMS’ financial institution clients are subject to similar requirements under the guidelines issued by the federal banking agencies. In addition, many individual states have enacted legislation requiring consumer notification in the event of a security breach.
Anti-Money Laundering and Anti-Terrorism Financing.  The U.S.A. PATRIOT Act requires NMS to maintain an anti-money laundering program. Sanctions imposed by the U.S. Treasury Office of Foreign Assets Control, or OFAC, restrict NMS from dealing with certain parties considered to be connected with money laundering, terrorism or narcotics. NMS has controls in place designed to ensure OFAC compliance, but if those controls should fail, it could be subject to penalties, reputational damage and loss of business.
Money Transfer Regulations.  As NMS expands its product offerings, it may become subject to money transfer regulations, increasing regulatory oversight and costs of compliance.
Formal Investigation.  If NMS is suspected of violating government statutes, such as the Federal Trade Commission Act or the Telemarketing and Consumer Fraud and Abuse Prevention Act, governmental agencies may formally investigate NMS. As a result of such a formal investigation, criminal or civil charges could be filed against NMS and it could be required to pay significant fines or penalties in connection with such investigation or other governmental investigations. Any criminal or civil charges by a governmental agency, including any fines or penalties, could materially harm NMS’ business, results of operations, financial position and cash flows. Currently, NMS is operating under an order for injunctive relief it voluntarily entered into with the Federal Trade Commission.

RISKS RELATING TO OUR CONTROLLED PORTFOLIO COMPANIES — NEWTEK TECHNOLOGY SOLUTIONS (NTS)

NTS operates in a highly competitive industry in which technological change can be rapid.

The information technology business and its related technology involve a broad range of rapidly changing technologies. NTS equipment and the technologies on which it is based may not remain competitive over time, and others may develop superior technologies that render its products non-competitive, without significant additional capital expenditures. Some of NTS’ competitors are significantly larger and have

43


 
 

TABLE OF CONTENTS

substantially greater market presence as well as greater financial, technical, operational, marketing and other resources and experience than NTS. In the event that such a competitor expends significant sales and marketing resources in one or several markets, NTS may not be able to compete successfully in such markets. We believe that competition will continue to increase, placing downward pressure on prices. Such pressure could adversely affect NTS gross margins if it is not able to reduce its costs commensurate with such price reductions. There can be no assurances that NTS will remain competitive.

NTS’ technology solutions business depends on the efficient and uninterrupted operation of its computer and communications hardware systems and infrastructure.

Despite precautions taken by NTS against possible failure of its systems, interruptions could result from natural disasters, power loss, the inability to acquire fuel for its backup generators, telecommunications failure, terrorist attacks and similar events. NTS also leases telecommunications lines from local, regional and national carriers whose service may be interrupted. NTS’ business, financial condition and results of operations could be harmed by any damage or failure that interrupts or delays its operations. There can be no assurance that NTS’ insurance will cover all of the losses or compensate NTS for the possible loss of clients occurring during any period that NTS is unable to provide service.

NTS’ inability to maintain the integrity of its infrastructure and the privacy of confidential information would materially affect its business.

The NTS infrastructure is potentially vulnerable to physical or electronic break-ins, viruses or similar problems. If its security measures are circumvented, it could jeopardize the security of confidential information stored on NTS’ systems, misappropriate proprietary information or cause interruptions in NTS’ operations. We may be required to make significant additional investments and efforts to protect against or remedy security breaches. Security breaches that result in access to confidential information could damage our reputation and expose us to a risk of loss or liability. The security services that NTS offers in connection with customers’ networks cannot assure complete protection from computer viruses, break-ins and other disruptive problems. The occurrence of these problems may result in claims against NTS or us or liability on our part. These claims, regardless of their ultimate outcome, could result in costly litigation and could harm our business and reputation and impair NTS’ ability to attract and retain customers.

NTS could be adversely affected by information security breaches or cyber security attacks.

NTS’ web and cloud services involve the storage and transmission of our customers’, employees’, and portfolio companies’ proprietary information. NTS’ business relies on its digital technologies, computer and email systems, software, and networks to conduct its operations. NTS’ technologies, systems and networks may become the target of criminal cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information of NTS or third parties with whom NTS deals, or otherwise disrupt our or our customers’ or other third parties’ business operations. It is critical to NTS’ business strategy that its facilities and infrastructure remain secure and are perceived by the marketplace to be secure. Although NTS employs appropriate security technologies (including data encryption processes, intrusion detection systems), and conduct comprehensive risk assessments and other internal control procedures to assure the security of our customers’ data, we cannot guarantee that these measures will be sufficient for this purpose. If NTS’ security measures are breached as a result of third-party action, employee error or otherwise, and as a result its customers’ data becomes available to unauthorized parties, NTS and our other portfolio companies could incur liability and its reputation would be damaged, which could lead to the loss of current and potential customers. If NTS experiences any breaches of its network security or sabotage, NTS might be required to expend significant capital and other resources to detect, remedy, protect against or alleviate these and related problems, and it may not be able to remedy these problems in a timely manner, or at all. Because techniques used by outsiders to obtain unauthorized network access or to sabotage systems change frequently and generally are not recognized until launched against a target, NTS may be unable to anticipate these techniques or implement adequate preventative measures. As cyber threats continue to evolve, NTS may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities. Although NTS has insurance in place that covers such incidents, the cost of a breach or cyber-attack could well exceed any such insurance coverage.

44


 
 

TABLE OF CONTENTS

NTS’ business depends on Microsoft Corporation and others for the licenses to use software as well as other intellectual property in the managed technology solutions business.

NTS’ managed technology business is built on technological platforms relying on the Microsoft Windows® products and other intellectual property that NTS currently licenses. As a result, if NTS is unable to continue to have the benefit of those licensing arrangements or if the products upon which its platform is built become obsolete, its business could be materially and adversely affected.

RISKS RELATING TO OUR CONTROLLED PORTFOLIO COMPANIES — NEWTEK INSURANCE AGENCY (NIA)

NIA depends on third parties, particularly property and casualty insurance companies, to supply the products marketed by its agents.

NIA contracts with property and casualty insurance companies typically provide that the contracts can be terminated by the supplier without cause. NIA’s inability to enter into satisfactory arrangements with these suppliers or the loss of these relationships for any reason would adversely affect the results of its insurance business. Also, NIA’s inability to obtain these products at competitive prices could make it difficult for it to compete with larger and better capitalized providers of such insurance services.

If NIA fails to comply with government regulations, its insurance agency business would be adversely affected.

NIA insurance agency business is subject to comprehensive regulation in the various states in which it conducts business. NIA’s success will depend in part upon its ability to satisfy these regulations and to obtain and maintain all required licenses and permits. NIA’s failure to comply with any statutes and regulations could have a material adverse effect on it. Furthermore, the adoption of additional statutes and regulations, changes in the interpretation and enforcement of current statutes and regulations could have a material adverse effect on it.

NIA does not have any control over the commissions it earns on the sale of insurance products which are based on premiums and commission rates set by insurers and the conditions prevalent in the insurance market.

NIA earns commissions on the sale of insurance products. Commission rates and premiums can change based on the prevailing economic and competitive factors that affect insurance underwriters. In addition, the insurance industry has been characterized by periods of intense price competition due to excessive underwriting capacity and periods of favorable premium levels due to shortages of capacity. We cannot predict the timing or extent of future changes in commission rates or premiums or the effect any of these changes will have on the operations of NIA.

RISKS RELATING TO OUR CONTROLLED PORTFOLIO COMPANIES — NEWTEK PAYROLL AND BENEFIT SOLUTIONS (NPS)

Unauthorized disclosure of employee data, whether through a cyber-security breach of our computer systems or otherwise, could expose NPS to liability and business losses.

NPS collects and stores sensitive data about individuals in order to process the transactions and for other internal processes. If anyone penetrates its network security or otherwise misappropriates sensitive individual data, NPS could be subject to liability or business interruption. NPS is subject to laws and rules issued by different agencies concerning safeguarding and maintaining the confidentiality of this information. Its activities have been, and will continue to be, subject to an increasing risk of cyber-attacks, the nature of which is continually evolving. Cyber-security risks include unauthorized access to privileged and sensitive customer information, including passwords and account information of NPS’ customers. While it subjects its data systems to periodic independent testing and review, NPS cannot guarantee that its systems will not be penetrated in the future. Experienced computer programmers and hackers may be able to penetrate NPS’ network security, and misappropriate or compromise our confidential information, create system disruptions, or cause shutdowns. As a result, NPS’ customers’ information may be lost, disclosed, accessed or taken without its customers’ consent. If a breach of NPS’ system occurs, it may be subject to liability, including claims for

45


 
 

TABLE OF CONTENTS

impersonation or other similar fraud claims. In the event of any such breach, NPS may also be subject to a class action lawsuit. Any significant violations of data privacy could result in the loss of business, litigation and regulatory investigations and penalties that could damage NPS’ reputation, and the growth of its business could be adversely affected.

NPS is subject to risks surrounding Automated Clearing House (“ACH”) payments.

Credit risk in ACH payments arises when a party to a contract fails to deposit funds required to settle the contract. This can occur if a client of NPS suffers losses, enters into bankruptcy or defrauds NPS. In such an event, NPS could bear the financial burden of settling the customer’s contract.

NPS’ systems may be subject to disruptions that could adversely affect its business and reputation.

NPS’ payroll business relies heavily on its payroll, financial, accounting and other data processing systems. If any of these systems or any of the vendors which supply them fails to operate properly or becomes disabled even for a brief period of time, NPS could suffer financial loss, a disruption of its business, liability to clients, regulatory intervention or damage to its reputation. NPS has disaster recovery plans in place to protect its businesses against natural disasters, security breaches, military or terrorist actions, power or communication failures or similar events. Despite NPS’ preparations, its disaster recovery plans may not be successful in preventing the loss of client data, service interruptions, and disruptions to its operations or damage to its important facilities.

If NPS fails to adapt its technology to meet client needs and preferences, the demand for its services may diminish.

NPS operates in industries that are subject to rapid technological advances and changing client needs and preferences. In order to remain competitive and responsive to client demands, NPS continually upgrades, enhances and expands its existing solutions and services. If NPS fails to respond successfully to technological challenges, the demand for its services may diminish.

NPS could incur unreimbursed costs or damages due to delays in processing inherent in the banking system.

NPS generally determines the availability of customer (employer) funds prior to making payments to employees or taxing authorities, and such employer funds are generally transferred in to its accounts prior to making payments out. Due to the structure of the banking system however, there are times when NPS may make payroll or tax payments and not immediately receive the funds to do so from the employer. There can be no assurance that the procedures NPS has in place to prevent these occurrences or mitigate the damages will be sufficient to prevent loss to its business. In addition, NPS could incur unreimbursed costs or damages due to delays in processing customer payrolls or payroll taxes in a timely manner.

RISKS RELATING TO OUR CONTROLLED PORTFOLIO COMPANIES — NEWTEK BUSINESS CREDIT SOLUTIONS (NBC)

An unexpected level of defaults in NBC’s accounts receivables, inventory or SBA 504 loan portfolios would reduce its income and increase its expenses.

If NBC’s level of non-performing assets in its receivable financing, inventory financing or SBA 504 lending business rises in the future, it could adversely affect its revenue, earnings and cash flow. Non-performing assets primarily consist of receivables for which the customer has not made timely payment. In certain situations, NBC may restructure the receivable to permit such a customer to have smaller payments over a longer period of time. Such a restructuring or non-payment by a receivables or inventory customer will result in lower revenue and less cash available for NBC’s operational activities.

NBC’s reserve for credit losses may not be sufficient to cover unexpected losses.

NBC’s business depends on the behavior of its customers. In addition to its credit practices and procedures, NBC maintains a reserve for credit losses on its accounts receivable and inventory portfolios, which it has judged to be adequate given the receivables it purchases. NBC periodically reviews its reserve

46


 
 

TABLE OF CONTENTS

for adequacy considering current economic conditions and trends, charge-off experience and levels of non-performing assets, and adjusts its reserve accordingly. However, because of recent unstable economic conditions, its reserves may prove inadequate, which could have a material adverse effect on its financial condition and results of operations.

NBC depends on outside financing to support its receivables financing and inventory business.

NBC’s receivables and inventory financing business depends on outside financing to support its acquisition of receivables. Termination of the credit lines for any reason would have a material adverse effect on its business, including but not limited to, the liquidation of its receivables portfolios to pay down the lines. If funds from such sale were insufficient to completely pay down the line of credit, NBC would be responsible for any short fall. We are a guarantor on a bank line of credit held at NBC to fund receivables and inventory financing, with maximum borrowings under the line of credit of $15,000,000. At June 30, 2017, total principal owed by NBC was $11,311,000. NBC also entered into an additional line of credit to fund SBA 504 loans extended by NBC (the “504 Facility”). The maximum amount of the 504 Facility is up to $35,000,000, depending upon syndication. At June 30, 2017, total principal owed by NBC was $3,695,000. The 504 Facility specifies certain events of default, pursuant to which all outstanding amounts under the 504 Facility could become immediately due and payable. We have guaranteed NBC’s obligations under the 504 Facility. If NBC defaults on these lines of credit, we would be required to make payments under the guarantees, which could have a material adverse effect on our financial condition and results of operations.

In addition, if NBC loses either of these lines of credit and NBC is unable to renew or replace these lines of credit, it would materially impact the business of NBC and have a material adverse effect on its financial condition and results of operations.

LEGAL PROCEEDINGS — PORTFOLIO COMPANIES

Our portfolio companies may, from time to time, be involved in various legal matters, including the currently pending case — Federal Trade Commission v. WV Universal Management, LLC et al., which may have an adverse effect on their operations and/or financial condition.

During the quarter ended June 30, 2013, the Federal Trade Commission (the “FTC”) amended an existing complaint in the matter Federal Trade Commission v. WV Universal Management, LLC et al., in the United States District Court for the Middle District of Florida (the “Court”), to add UPSW as an additional defendant on one count of providing substantial assistance in violation of the Telemarketing Sales Rule. On November 18, 2014, the Court issued an Order granting the FTC’s motion for summary judgment against UPSW on the single count. Subsequently, the FTC filed motions for a permanent injunction and equitable monetary relief against UPSW and the other remaining defendants. Prior to the Court hearing on the motions, UPSW and the FTC reached a settlement on the FTC’s motion for a permanent injunction. On May 19, 2015, the Court entered an equitable monetary judgment against UPSW for $1,735,000. The $1,735,000 was fully expensed in 2014 by UPSW.

On June 14, 2016, the United States Court of Appeals for the Eleventh Circuit vacated the Court’s order awarding joint and several liability for equitable monetary relief in the amount of $1,735,000 against UPSW, and remanded the case to the Court for findings of fact and conclusions of law as to whether and why UPSW should be jointly and severally liable for restitution, and in what amount, if any. On October 26, 2016, the Court entered an equitable monetary judgment against UPSW for $1,735,000. UPSW’s appeal of the judgment is pending.

UPSW instituted an action against a former independent sales agent in Wisconsin state court for, among other things, breach of contract. The former sales agent answered the complaint and filed counterclaims against UPSW. Following UPSW’s successful appeal of several of the court’s rulings, the action has been assigned to a new judge for further proceedings. UPSW intends to vigorously pursue its claims against the former sales agent and defend the counterclaims asserted.

47


 
 

TABLE OF CONTENTS

RISKS RELATING TO OUR CAPCO BUSINESS

The Capco programs and the tax credits they provide are created by state legislation and implemented through regulation, and such laws and rules are subject to possible action to repeal or retroactively revise the programs for political, economic or other reasons. Such an attempted repeal or revision would create substantial difficulty for the Capco programs and could, if ultimately successful, cause us material financial harm.

The tax credits associated with the Capco programs and provided to our Capcos’ investors are to be utilized by the investors over a period of time, which is typically ten years. Much can change during such a period and it is possible that one or more states may revise or eliminate the tax credits. Any such revision or repeal could have a material adverse economic impact on our Capcos, either directly or as a result of the Capco’s insurer’s actions. Any such final state action that jeopardizes the tax credits could result in the provider of our Capco insurance assuming partial or full control of the particular Capco in order to minimize its liability under the Capco insurance policies issued to our investors.

Because our Capcos are subject to requirements under state law, a failure of any of them to meet these requirements could subject the Capco and our shareholders to the loss of one or more Capcos.

Despite the fact that we have met all applicable minimum requirements of the Capco programs in which we still participate, each Capco remains subject to state regulation until it has invested 100% of its funds and otherwise remains in full legal compliance. There can be no assurance that we will continue to be able to do so. A major regulatory violation, while not fatal to our Capco business, would materially increase the cost of operating the Capcos.

We know of no other publicly-held company that sponsors and operates Capcos as a part of its business. As such, there are, to our knowledge, no other companies against which investors may compare our Capco business and its operations, results of operations and financial and accounting structures.

In the absence of any meaningful peer group comparisons for our Capco business, investors may have a difficult time understanding and judging the strength of our business. This, in turn, may have a depressing effect on the value of our stock.

RISKS RELATING TO OUR SECURITIES

As of June 30, 2017, Barry Sloane, our CEO, beneficially owned approximately 6% of our common stock, and may be able to exercise significant influence over the outcome of most shareholder actions.

Because of his ownership of our stock, Barry Sloane, our Chairman, Chief Executive Officer and President, may be able to exercise significant influence over actions requiring shareholder approval, including the election of directors, the adoption of amendments to the certificate of incorporation, approval of stock incentive plans and approval of major transactions such as a merger or sale of assets. This could delay or prevent a change in control of the Company, deprive our shareholders of an opportunity to receive a premium for their common stock as part of a change in control and have a negative effect on the market price of our common stock.

Our common stock price may be volatile and may decrease substantially.

The trading price of our common stock may fluctuate substantially. The price of our common stock may be higher or lower depending on many factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include, but are not limited to, the following:

price and volume fluctuations in the overall stock market from time to time;
investor demand for our stock;
significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies;

48


 
 

TABLE OF CONTENTS

changes in regulatory policies or tax guidelines with respect to RICs, BDCs, or SBLCs;
failure to qualify as a RIC, or the loss of RIC status;
any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;
changes, or perceived changes, in the value of our portfolio investments;
departures of key Company personnel;
operating performance of companies comparable to us; or
general economic conditions and trends and other external factors.

In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Due to the potential volatility of our stock price once a market for our stock is established, we may become the target of securities litigation in the future. Securities litigation could result in substantial costs and divert management’s attention and resources from our business.

Future issuances of our common stock or other securities, including preferred shares, may dilute the per share book value of our common stock or have other adverse consequences to our common shareholders.

Our Board has the authority, without the action or vote of our shareholders, to issue all or part of the approximately 182,598,952 authorized but unissued shares of our common stock. Our business strategy relies upon investments in and acquisitions of businesses using the resources available to us, including our common stock. Additionally, we anticipate granting additional options or restricted stock awards to our employees and directors in the future. Absent exemptive relief, a BDC generally may not issue restricted stock to its directors, officers and employees. In May 2016, the SEC issued an order granting the Company’s request for exemptive relief to allow us to amend our equity compensation plan and make such grants and awards, subject to shareholder approval. We may also issue additional securities, through public or private offerings, in order to raise capital. Future issuances of our common stock will dilute the percentage of ownership interest of current shareholders and could decrease the per share book value of our common stock. In addition, option holders may exercise their options at a time when we would otherwise be able to obtain additional equity capital on more favorable terms. In July 2016, our shareholders approved the amendments to our equity compensation plan, and certain restricted stock awards granted thereunder.

We may also issue additional securities, through public or private offerings, in order to raise capital. Future issuances of our common stock will dilute the percentage of ownership interest of current shareholders and could decrease the per share book value of our common stock. In addition, option holders may exercise their options at a time when we would otherwise be able to obtain additional equity capital on more favorable terms.

Pursuant to our amended and restated charter, our Board is authorized to classify any unissued shares of stock and reclassify any previously classified but unissued shares of stock of any class or series from time to time, into one or more classes or series of stock, including preferred stock. If we issue preferred stock, the preferred stock would rank “senior” to common stock in our capital structure, preferred shareholders would have separate voting rights on certain matters and might have other rights, preferences, or privileges more favorable than those of our common shareholders, and the issuance of preferred stock could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in your best interest. We will not generally be able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then current net asset value per share of our common stock if our Board determines that such sale is in our best interests and in the best interests of our shareholders, and our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). If we

49


 
 

TABLE OF CONTENTS

raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our shareholders at that time will decrease, and you may experience dilution.

Our shareholders may experience dilution upon the repurchase of common shares.

The Company has instituted programs which allow the Company to repurchase the Company’s outstanding common shares on the open market. Under the programs, purchases may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. On May 11, 2016, the Company announced that its Board approved a new share repurchase program under which the Company was able to repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016. 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. The program terminated on May 21, 2017 but our Board may authorize a new repurchase program in the future. If we were to repurchase shares at a price above net asset value, such repurchases would result in an immediate dilution to existing common shareholders due to a reduction in our earnings and assets due to the repurchase that is greater than the reduction in total shares outstanding. During the year ended December 31, 2016, the Company repurchased and retired 70,000 common shares in open market transactions for approximately $866,000.

The authorization and issuance of “blank check” preferred shares could have an anti-takeover effect detrimental to the interests of our shareholders.

Our certificate of incorporation allows our Board to issue preferred shares with rights and preferences set by the Board without further shareholder approval. The issuance of these “blank check” preferred shares could have an anti-takeover effect detrimental to the interests of our shareholders. For example, in the event of a hostile takeover attempt, it may be possible for management and the Board to impede the attempt by issuing the preferred shares, thereby diluting or impairing the voting power of the other outstanding common shares and increasing the potential costs to acquire control of us. Our Board has the right to issue any new shares, including preferred shares, without first offering them to the holders of common shares, as they have no preemptive rights. The Company does not currently intend to issue preferred shares.

Our business and operation could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price.

In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Stockholder activism, which could take many forms or arise in a variety of situations, has been increasing in the BDC space recently. While we are currently not subject to any securities litigation or shareholder activism, due to the potential volatility of our stock price and for a variety of other reasons, we may in the future become the target of securities litigation or shareholder activism. Securities litigation and shareholder activism, including potential proxy contests, could result in substantial costs and divert management’s and our board of directors’ attention and resources from our business. Additionally, such securities litigation and shareholder activism could give rise to perceived uncertainties as to our future, adversely affect our relationships with service providers and make it more difficult to attract and retain qualified personnel. Also, we may be required to incur significant legal fees and other expenses related to any securities litigation and activist shareholder matters. Further, our stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any securities litigation and shareholder activism.

Provisions of the Maryland General Corporation Law and of our charter and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.

The Maryland General Corporation Law and our charter and bylaws contain provisions that may discourage, delay or make more difficult a change in control of Newtek or the removal of our directors. We are subject to the Maryland Business Combination Act, subject to any applicable requirements of

50


 
 

TABLE OF CONTENTS

the 1940 Act. Our Board has adopted a resolution exempting from the Business Combination Act any business combination between us and any other person, subject to prior approval of such business combination by our Board, including approval by a majority of our independent directors. If the resolution exempting business combinations is repealed or our Board does not approve a business combination, the Business Combination Act may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer. Our bylaws exempt from the Maryland Control Share Acquisition Act acquisitions of our stock by any person.

The SEC staff has taken the position that, under the 1940 Act, an investment company may not avail itself of the Control Share Act. As a result, we will amend our bylaws to be subject to the Control Share Act only if the board of directors determines that it would be in our best interests and, after notification, the SEC staff does not object to our determination that our being subject to the Control Share Act does not conflict with the 1940 Act. If such conditions are met, and we amend our bylaws to repeal the exemption from the Control Share Acquisition Act, the Control Share Acquisition Act also may make it more difficult for a third party to obtain control of us and increase the difficulty of consummating such a transaction.

We have also adopted measures that may make it difficult for a third party to obtain control of us, including provisions of our charter classifying our Board in three classes serving staggered three-year terms and authorizing our Board to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock, to amend our charter without shareholder approval and to increase or decrease the number of shares of stock that we have authority to issue. These provisions, as well as other provisions of our charter and bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our shareholders.

Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.

All of the common stock held by our executive officers and directors, represents approximately 1,131,729 shares, or approximately 7% of our total outstanding shares as of June 30, 2017. Such shares are generally freely tradable in the public market. Sales of substantial amounts of our common stock, or the availability of such common stock for sale, could adversely affect the prevailing market prices for our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of securities should we desire to do so.

If we issue preferred stock, the net asset value and market value of our common stock will likely become more volatile.

We cannot assure you that the issuance of preferred stock would result in a higher yield or return to the holders of our common stock. The issuance of preferred stock would likely cause the net asset value and market value of the common stock to become more volatile. If the dividend rate on the preferred stock were to approach the net rate of return on our investment portfolio, the benefit of leverage to the holders of the common stock would be reduced. If the dividend rate on the preferred stock were to exceed the net rate of return on our portfolio, the leverage would result in a lower rate of return to the holders of common stock than if we had not issued preferred stock. Any decline in the net asset value of our investments would be borne entirely by the holders of common stock. Therefore, if the market value of our portfolio were to decline, the leverage would result in a greater decrease in net asset value to the holders of common stock than if we were not leveraged through the issuance of preferred stock. This greater net asset value decrease would also tend to cause a greater decline in the market price for the common stock. We might be in danger of failing to maintain the required asset coverage of the preferred stock or of losing our ratings, if any, on the preferred stock or, in an extreme case, our current investment income might not be sufficient to meet the dividend requirements on the preferred stock. To counteract such an event, we might need to liquidate investments to fund a redemption of some or all of the preferred stock. In addition, we would pay (and the holders of common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock, including higher advisory fees if our total return exceeds the dividend rate on the preferred stock. Holders of preferred stock may have different interests than holders of common stock and may at times have disproportionate influence over our affairs.

51


 
 

TABLE OF CONTENTS

Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current net asset value per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.

The 1940 Act prohibits us from selling shares of our common stock at a price below the current net asset value per share of such stock, with certain exceptions. One such exception is prior shareholder approval of issuances below net asset value provided that our Board makes certain determinations. On August 11, 2017, at our Special Meeting of Shareholders, our shareholders approved a proposal that authorizes us to sell up to 20% of our common stock at a price below the Company’s then-current net asset value per share, subject to certain conditions. Any decision to sell shares of our common stock below the then current net asset value per share of our common stock or securities to subscribe to, convert to, or purchase shares of our common stock would be subject to the determination by our Board that such issuance is in our and our shareholders’ best interests.

If we were to sell shares of our common stock below net asset value per share, such sales would result in an immediate dilution to the net asset value per share. This dilution would occur as a result of the sale of shares at a price below the then current net asset value per share of our common stock and a proportionately greater decrease in a shareholder’s interest in our earnings and assets and voting interest in us than the increase in our assets resulting from such issuance. In addition, if we issue securities to subscribe to, convert to or purchase shares of common stock, the exercise or conversion of such securities would increase the number of outstanding shares of our common stock. Any such exercise would be dilutive on the voting power of existing shareholders, and could be dilutive with regard to dividends and our net asset value, and other economic aspects of the common stock. Because the number of shares of common stock that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted; however, the example below illustrates the effect of dilution to existing shareholders resulting from the sale of common stock at prices below the net asset value of such shares.

RISKS RELATING TO OUR PUBLICLY-TRADED DEBT

The 7.50% Notes due 2022 (the “2022 Notes”) and the 7.00% Notes due 2021 (the “2021 Notes,” and together with the 2022 Notes, the “Notes”) are unsecured and therefore are effectively subordinated to any secured indebtedness we have outstanding or may incur in the future.

In September 2015 and April 2016, we issued $8,324,000 and $40,250,000 in aggregate principal amount of the 2022 Notes and 2021 Notes, respectively. The Notes are not secured by any of our assets or any of the assets of our subsidiaries. As a result, the Notes are effectively subordinated to any secured indebtedness we or our subsidiaries have outstanding or may incur in the future (or any indebtedness that is initially unsecured to which we subsequently grant security). In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness and the existing or future secured indebtedness of our subsidiaries may assert rights against the assets pledged to secure that indebtedness to receive full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the Notes.

The Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.

The Notes are obligations exclusively of the Company and not of any of our subsidiaries. None of our subsidiaries is a guarantor of the Notes and the Notes are not required to be guaranteed by any subsidiaries we may acquire or create in the future. Any assets of our subsidiaries will not be directly available to satisfy the claims of our creditors, including holders of the Notes.

Except to the extent we are a creditor with recognized claims against our subsidiaries, all claims of creditors (including trade creditors) and holders of preferred stock, if any, of our subsidiaries will have priority over our equity interests in such subsidiaries (and therefore the claims of our creditors, including holders of the Notes) with respect to the assets of such subsidiaries. Even if we are recognized as a creditor of one or more of our subsidiaries, our claims would still be effectively subordinated to any security interests in the assets of any such subsidiary and to any indebtedness or other liabilities of any such subsidiary senior to our claims. Consequently, the Notes are structurally subordinated to all indebtedness and other liabilities

52


 
 

TABLE OF CONTENTS

(including trade payables) of any of our subsidiaries and any subsidiaries that we may in the future acquire or establish as financing vehicles or otherwise.

The indenture under which the Notes were issued contains limited protection for holders of the Notes.

The indentures under which the Notes were issued offers limited protection to holders of the Notes. The terms of the indentures and the Notes do not restrict our or any of our subsidiaries’ ability to engage in, or otherwise be a party to, a variety of corporate transactions, circumstances or events that could have a material adverse impact on your investment in the Notes. In particular, the terms of the indentures and the Notes do not place any restrictions on our or our subsidiaries’ ability to:

issue securities or otherwise incur additional indebtedness or other obligations, including (1) any indebtedness or other obligations that would be equal in right of payment to the Notes, (2) any indebtedness or other obligations that would be secured and therefore rank effectively senior in right of payment to the Notes, (3) indebtedness of ours that is guaranteed by one or more of our subsidiaries and which therefore is structurally senior to the Notes and (4) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior to our equity interests in our subsidiaries and therefore rank structurally senior to the Notes with respect to the assets of our subsidiaries, in each case other than an incurrence of indebtedness or other obligation that would cause a violation of Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the SEC. Currently, these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 200% after such borrowings;
with respect to the 2021 Notes, pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the 2021 Notes, including subordinated indebtedness, in each case other than dividends, purchases, redemptions or payments that would cause a violation of Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act as in effect immediately prior to the issuance of the 2021 Notes, we will not declare any dividend (except a dividend payable in stock of the issuer), or declare any other distribution, upon a class of the capital stock of the Company, or purchase any such capital stock, unless, in every such case, at the time of the declaration of any such dividend or distribution, or at the time of any such purchase, the Company has an asset coverage (as defined in the 1940 Act) of at least 200% after deducting the amount of such dividend, distribution or purchase price, as the case may be, and giving effect, in each case, (i) to any exemptive relief granted to the Company by the SEC and (ii) to any no-action relief granted by the SEC to another business development company (or to the Company if it determines to seek such similar no-action or other relief) permitting the business development company to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act in order to maintain such business development company’s status as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended;
with respect to the 2022 Notes, pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the Notes, including subordinated indebtedness, in each case other than dividends, purchases, redemptions or payments that would cause a violation of Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, giving effect to (i) any exemptive relief granted to us by the SEC and (ii) no-action relief granted by the SEC to another BDC (or to the Company if it determines to seek such similar no-action or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act in order to maintain the BDC’s status as a RIC under Subchapter M of the Code (these provisions generally prohibit us from declaring any cash dividend or

53


 
 

TABLE OF CONTENTS

distribution upon any class of our capital stock, or purchasing any such capital stock if our asset coverage, as defined in the 1940 Act, is below 200% at the time of the declaration of the dividend or distribution or the purchase and after deducting the amount of such dividend, distribution or purchase);
sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all of our assets);
enter into transactions with affiliates;
create liens (including liens on the shares of our subsidiaries) or enter into sale and leaseback transactions;
make investments; or
create restrictions on the payment of dividends or other amounts to us from our subsidiaries.

In addition, the indentures does not require us to offer to purchase the Notes in connection with a change of control, asset sale or any other event. Furthermore, the terms of the indentures and the Notes do not protect holders of the Notes in the event that we experience changes (including significant adverse changes) in our financial condition, results of operations or credit ratings, as they do not require that we or our subsidiaries adhere to any financial tests or ratios or specified levels of net worth, revenues, income, cash flow or liquidity. Our ability to recapitalize, incur additional debt and take a number of other actions that are not limited by the terms of the Notes may have important consequences for you as a holder of the Notes, including making it more difficult for us to satisfy our obligations with respect to the Notes or negatively affecting the trading value of the Notes.

Other debt we issue or incur in the future could contain more protections for its holders than the indentures and the Notes, including additional covenants and events of default. The issuance or incurrence of any such debt with incremental protections could affect the market for and trading levels and prices of the Notes.

If we default on our obligations to pay other indebtedness that we may incur in the future, we may not be able to make payments on the Notes.

In the future, we may enter into agreements to incur additional indebtedness, including a secured credit facility. A default under such agreements to which we may be a party that is not waived by the required lenders or holders, and the remedies sought by the holders of such indebtedness could make us unable to pay principal, premium, if any, and interest on the Notes and substantially decrease the market value of the Notes. If we are unable to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, and interest on such future additional indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants, in the instruments governing such future additional indebtedness, we could be in default under the terms of the agreements governing such indebtedness. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest, the lenders of other debt we may incur in the future could elect to terminate their commitments, cease making further loans and institute foreclosure proceedings against our assets, and we could be forced into bankruptcy or liquidation. If we are unable to repay debt, lenders having secured obligations could proceed against the collateral securing the debt. Because any future credit facilities likely will have customary cross-default provisions, if the indebtedness under any future credit facility is accelerated, we may be unable to repay or finance the amounts due.

We may choose to redeem the Notes when prevailing interest rates are relatively low.

On or after April 22, 2017 and September 23, 2018, we may choose to redeem the 2021 Notes and the 2022 Notes, respectively, from time to time, especially when prevailing interest rates are lower than the interest rate on the 2021 Notes or 2022 Notes. If prevailing rates are lower at the time of redemption, you may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the interest rate on the Notes being redeemed. Our redemption right also may adversely impact your ability to sell the Notes as the optional redemption date or period approaches.

54


 
 

TABLE OF CONTENTS

In addition, on November 21, 2016, the Company announced that its Board approved a repurchase program under which the Company may repurchase up to 10%, or $832,400 in aggregate principal amount, of its 7.50% Notes due 2022 and up to 10%, or $4,025,000 in aggregate principal amount, of its 7.00% Notes due 2021 through open market purchases, including block purchases, in such manner as will comply with the provisions of the 1940 Act and the Exchange Act. The repurchase plan expired on May 21, 2017, however, the Company may institute a new repurchase plan in the future.

The trading market or market value of our publicly traded debt securities may fluctuate.

The 2022 Notes and the 2021 Notes are new issues of debt securities listed on the Nasdaq Global Market under the symbols “NEWTZ” and “NEWTL,” respectively. Although the Notes are listed on Nasdaq, we cannot assure you that a trading market for our publicly issued debt securities will be maintained. In addition to our creditworthiness, many factors may materially adversely affect the trading market for, and market value of, our publicly issued debt securities. These factors include, but are not limited to, the following:

the time remaining to the maturity of these debt instruments;
the outstanding principal amount of debt securities with terms identical to these debt securities;
the ratings assigned by the national statistical rating agencies;
the general economic environment;
the supply of debt securities trading in the secondary market, if any;
the level, direction and volatility of market interest rates generally; and
market rates of interest higher or lower than rates borne by the debt securities.

You should be aware that there may be a limited number of buyers when you decide to sell your securities. This too may materially adversely affect the market value of the debt securities of the trading market for the debt securities.

Pending legislation may allow us to incur additional leverage.

As a BDC, under the 1940 Act we generally are not permitted to incur indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). Pending legislation in the U.S. House of Representatives, if passed, would modify this section of the 1940 Act and increase the amount of debt that BDCs may incur by modifying the asset coverage percentage from 200% to 150%. As a result, we may be able to incur additional indebtedness in the future and therefore your risk of an investment in us may increase.

55


 
 

TABLE OF CONTENTS

CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS AND PROJECTIONS

This prospectus contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about the Company, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this prospectus involve risks and uncertainties, including statements as to:

our future operating results;
our business prospects and the prospects of our portfolio companies;
the impact of investments that we expect to make;
our contractual 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;
the ability of our portfolio companies to achieve their objectives;
our expected financings and investments;
our ability to obtain exemptive relief from the SEC to co-invest and to engage in joint restructuring transactions or joint follow-on investments;
the adequacy of our cash resources and working capital; and
the timing of cash flows, if any, from the operations of our portfolio companies.

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 forward-looking statements, including without limitation:

an economic downturn could impair our portfolio companies’ ability to continue to operate or repay their borrowings, which could lead to the loss of some or all of our investments in such portfolio companies;
a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities;
interest rate volatility could adversely affect our results, particularly if we use leverage as part of our investment strategy; and
the risks, uncertainties and other factors we identify in “Risk Factors” and elsewhere in this prospectus and in our filings with the SEC.

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 our ability to originate new loans and investments, 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 prospectus should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in “Risk Factors” and elsewhere in this prospectus. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this prospectus. However, we will update this prospectus to reflect any material changes to the information contained herein. The forward-looking statements in this prospectus are excluded from the safe harbor protection provided by Section 27A of the Securities Act and Section 21E of the Exchange Act.

56


 
 

TABLE OF CONTENTS

USE OF PROCEEDS

We intend to use the net proceeds from selling our securities for funding investments in debt and equity securities in accordance with our investment objective and strategies described in this prospectus. Additionally, we may use net proceeds for general corporate purposes, which include funding investments, repaying any outstanding indebtedness, acquisitions, and other general corporate purposes. The supplement to this prospectus relating to an offering will more fully identify the use of proceeds from such offering.

We anticipate that substantially all of the net proceeds of any offering of our securities will be used for the above purposes within six to nine months from the consummation of the offering, depending on the availability of appropriate investment opportunities consistent with our investment objective and market conditions. We cannot assure you we will achieve our targeted investment pace. We expect that it may take more than three months to invest all of the net proceeds of an offering of our securities, in part because investments in private companies often require substantial research and due diligence.

Pending such investments, we will invest the net proceeds primarily in cash, cash equivalents, U.S. government securities and other high-quality temporary investments that mature in one year or less from the date of investment. See “Regulation — Temporary Investments” for additional information about temporary investments we may make while waiting to make longer-term investments in pursuit of our investment objective.

57


 
 

TABLE OF CONTENTS

PRICE RANGE OF COMMON STOCK AND DISTRIBUTIONS

Our common stock is traded on the Nasdaq Global Market under the symbol “NEWT.” The following table sets forth, for the two most recent fiscal years and the current fiscal year, the range of high and low sales prices of our common stock as reported on the Nasdaq Global Market:

         
Period   Price Range(3)   NAV(1)   Premium
(Discount) of
High Sales
Price to
NAV(2)
  Premium
(Discount) of
Low Sales
Price to
NAV(2)
  High   Low
2015
                                            
First Quarter: January 1, 2015 Through March 31, 2015   $ 19.95     $ 14.06     $ 16.61       20 %      (15 )% 
Second Quarter: April 1, 2015 Through June 30, 2015   $ 18.85     $ 16.42     $ 16.62       13 %      (1 )% 
Third Quarter: July 1, 2015 Through September 30, 2015   $ 19.82     $ 14.66     $ 16.88       17 %      (13 )% 
Fourth Quarter: October 1, 2015 Through December 31, 2015   $ 19.18     $ 12.80     $ 14.06       36 %      (9 )% 
2016
                                            
First Quarter: January 1, 2016 Through March 31, 2016   $ 14.51     $ 9.37     $ 14.10       3 %      (34 )% 
Second Quarter: April 1, 2016 Through June 30, 2016   $ 13.36     $ 11.83     $ 14.11       (6 )%      (19 )% 
Third Quarter: July 1, 2016 Through September 30, 2016   $ 14.44     $ 12.26     $ 14.26       1 %      (14 )% 
Fourth Quarter: October 1, 2016 Through December 31, 2016   $ 16.09     $ 13.76     $ 14.30       13 %      (4 )% 
2017
                                            
First Quarter: January 1, 2017 Through March 31, 2017   $ 17.58     $ 15.15     $ 14.31       23 %      6 % 
Second Quarter: April 1, 2017 Through June 30, 2017   $ 18.00     $ 15.68     $ 14.36       25 %      9 % 
Third Quarter: July 1, 2017 Through August 21, 2017   $ 17.34     $ 15.68           *%      *% 

(1) Net asset value per share is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per share on the date of the high and low sales prices. The values reflect stockholders equity per share/net asset value and are based on outstanding shares at the end of each period.
(2) Calculated as the respective high or low sales price divided by net asset value and subtracting 1.
(3) The information presented in the table has been adjusted to reflect a 1 for 5 Reverse Stock Split effectuated on October 22, 2014.
* Not determinable at time of filing.

The last reported price for our common stock on August 21, 2017 was $17.15 per share. As of August 21, 2017 Newtek Business Services Corp. had approximately 138 stockholders of record.

Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that our shares of common stock will trade at a discount from net asset value or at premiums that are unsustainable over the long term are separate and distinct from the risk that our net asset value will decrease. It is not possible to predict whether the shares offered hereby will trade at, above, or below net asset value. As of August 21, 2017, our common stock closed at $17.15 per share. Our net asset value was $14.36 per share as of June 30, 2017.

58


 
 

TABLE OF CONTENTS

Distributions

In order to receive tax treatment as a RIC, we must distribute to our shareholders, in respect of each taxable year, dividends for U.S. federal income tax purposes of an amount generally at least equal to the Annual Distribution Requirement. Upon satisfying this requirement in respect of a taxable year, we generally will not be subject to corporate taxes on any income we distribute to our shareholders as dividends for U.S. federal income tax purposes.

However, as a RIC we will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income and gains unless we make distributions treated as dividends for U.S. federal income tax purposes in a timely manner to our shareholders in respect of each calendar year of an amount at least equal to the sum of (1) 98% of our net ordinary income for each calendar year, (2) 98.2% of our capital gain net income for the one-year period ending October 31 in that calendar year and (3) any income recognized, but not distributed, in preceding years and on which we paid no corporate-level income tax (the “Excise Tax Avoidance Requirement”). We will not be subject to this excise tax on any amount on which we incurred U.S. federal corporate income tax (such as the tax imposed on a RIC’s retained net capital gains).

Depending on the level of taxable income earned in a taxable year, we may choose to carry over taxable income in excess of current taxable year distributions treated as dividends for U.S. federal income tax purposes from such taxable income into the next taxable year and incur a 4% excise tax on such taxable income, as required. The maximum amount of excess taxable income that may be carried over for distribution in the next taxable year under the Code is the total amount of distributions treated as dividends for U.S. federal income tax purposes paid in the following taxable year, subject to certain declaration and payment guidelines. To the extent we choose to carry over taxable income into the next taxable year, distributions declared and paid by us in a taxable year may differ from our taxable income for that taxable year as such distributions may include the distribution of current taxable year taxable income, the distribution of prior taxable year taxable income carried over into and distributed in the current taxable year, or returns of capital.

We can offer no assurance that we will achieve results that will permit the payment of any cash distributions and, if we issue senior securities, we will be prohibited from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if distributions are limited by the terms of any of our borrowings. Our ability to make distributions will be limited by the asset coverage requirements under the 1940 Act. See “Regulation.”

The following table summarizes the Company’s dividend declarations and distributions during the six months ended June 30, 2017 and during the years ended December 31, 2016 and 2015. There were no dividend declarations or distributions for the periods November 12, 2014 through December 31, 2014 or January 1, 2014 through November 11, 2014.

   
Record Date   Payment Date   Distribution Declared
March 30, 2015     April 13, 2015     $ 0.39  
June 29, 2015     July 15, 2015     $ 0.47  
October 22, 2015     November 3, 2015     $ 0.50  
November 18, 2015     December 31, 2015     $ 2.69  
January 7, 2016     January 19, 2016     $ 0.40  
March 22, 2016     March 31, 2016     $ 0.35  
June 20, 2016     June 30, 2016     $ 0.35  
September 20, 2016     September 30, 2016     $ 0.43  
December 15, 2016     December 30, 2016     $ 0.40  
March 20, 2017     March 31, 2017     $ 0.36  
May 31, 2017     June 30, 2017     $ 0.40  
September 22, 2017     September 29, 2017     $ 0.44  
           $ 7.18  

(1) The Special dividend was declared as a result of the Company’s RIC election for tax year 2015 and represents the distribution of 100% of the Company’s accumulated earnings and profits through December 31, 2014. Pursuant to applicable Treasury Regulation and IRS guidance, the dividend was payable up to 27% in cash and at least 73% in newly issued shares of our common stock.

59


 
 

TABLE OF CONTENTS

Our Board maintains a variable distribution policy with the objective of distributing four quarterly distributions in an amount that approximates 90 – 100% of our taxable quarterly income or potential annual income for a particular taxable year. In addition, at the end of our taxable year, our Board may choose to pay an additional special distribution, or fifth distribution, so that we may distribute approximately all of our annual taxable income in the taxable year in which it was earned, or may elect to maintain the option to spill over our excess taxable income into the following taxable year as part of any future distribution payments.

Distributions in excess of our current and accumulated earnings and profits would generally be treated first as a return of capital to the extent of a shareholder’s tax basis in our shares, and any distributions paid in excess of a shareholder’s tax basis in our shares would generally be treated as a capital gain. The determination of the tax attributes of our distributions is made annually as of the end of our taxable year and is generally based upon our taxable income for the full taxable year and distributions paid for the full taxable year. Of the distributions declared during the years ended December 31, 2016 and 2015, 100% were distributions derived from our current and accumulated earnings and profits. There can be no certainty to shareholders that this determination is representative of the tax attributes of the 2017 distributions that we anticipate would be made to shareholders.

We maintain an “opt-out” dividend reinvestment plan for our common shareholders. As a result, if we declare a distribution, cash distributions will be automatically reinvested in additional shares of our common stock unless the shareholder specifically “opts out” of the dividend reinvestment plan and chooses to receive cash distributions. During 2016 and 2015, the Company issued 57,500 and 16,600 shares, respectively, of common stock to shareholders in connection with the dividend reinvestment plan.

Securities authorized for issuance under equity compensation plans as of June 30, 2017:

     
Plan Category   (a)
Number of
securities to be
issued upon exercise
of outstanding
options, warrants
and rights
  (b)
Weighted-average
exercise price of
outstanding options,
warrants and rights
  (c)
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in
column (a))
Equity compensation plans approved by security holders     None       None       2,876,469 shares  
Equity compensation plans not approved by security holders     None       None       None  

60


 
 

TABLE OF CONTENTS

RATIO OF EARNINGS TO FIXED CHARGES

The following table contains our ratio of earnings to fixed charges for the periods indicated, computed as set forth below. You should read these ratios of earnings to fixed charges in connection with our consolidated financial statements, including the notes to those statements, included in this prospectus.

             
  As a Business Development Company   Prior to Becoming a
Business Development Company
     For the
Six Months Ended
June 30,
2017
  For the
Year Ended
December 31,
2016
  For the
Year Ended
December 31,
2015
  For the Period
November 11,
2014 through
December 31,
2014
  For the Period
January 1,
2014 through
November 10,
2014
  For the
Year Ended
December 31,
2013
  For the
Year Ended
December 31,
2012
Earnings to Fixed Charges     3.49       4.24       6.52       2.20       1.98       2.89       3.10  

For purposes of computing the ratios of earnings to fixed charges, earnings represent net increase in stockholders’ equity resulting from operations plus (or minus) income tax expense (benefit), including excise tax expense, plus fixed charges. Fixed charges include interest and credit facility fees expense and amortization of deferred financing costs.

61


 
 

TABLE OF CONTENTS

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our financial statements and related notes and other financial information appearing elsewhere in this prospectus. In addition to historical information, the following discussion and other parts of this prospectus contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under “Risk Factors” and “Forward-Looking Statements” appearing elsewhere herein.

Overview

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) that provide a wide range of business and financial products to small- and medium-sized businesses (“SMBs”). Newtek’s products and services include: Business Lending, including U.S. Small Business Administration (“SBA”) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), eCommerce, Accounts Receivable and Inventory Financing, The Secure Gateway, The Newtek Advantage®, personal and commercial Insurance Services, Web Services, Data Backup, Store and Retrieval and Payroll and Benefits Solutions to SMB accounts nationwide across all industries. We have an established 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 state in the U.S and across a variety of different industries. In addition, we have developed a financial and technology based business model that enables us and our controlled portfolio companies to acquire and process our SMB clients 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 but we believe better than the system popularized by Salesforce.com. We believe that this technology and business model distinguishes us from 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.

62


 
 

TABLE OF CONTENTS

Newtek LSP Holdco, LLC
Newtek Business Services Holdco 1, Inc.
Newtek Business Services Holdco 2, Inc.

Set forth is a diagram of our current organizational structure:

[GRAPHIC MISSING]

(1) Consolidated subsidiary that is part of the Company’s small business finance platform, and operates as a nationally licensed SBA lender under the federal Section 7(a) program with preferred lender program status.
(2) Consists of indirect and direct SBA 7(a) Loans to small businesses.
(3) Wholly-owned portfolio company that is part of the Company’s small business finance platform. Provides receivables and inventory financing, management services, and managerial assistance to SMBs.
(4) Wholly-owned portfolio company that markets credit and debit card processing services, check approval services, processing equipment, and software.
(5) Wholly-owned portfolio company that provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage and backup, and other related services.
(6) Wholly-owned portfolio company that is part of the Company’s small business finance platform. Provides third-party loan services for SBA and non-SBA loans.
(7) Wholly-owned portfolio company that markets credit and debit card processing services, check approval services, processing equipment, and software.
(8) Includes: (i) Newtek Insurance Agency, LLC, a wholly-owned portfolio company which is a retail and wholesale brokerage insurance agency specializing in the sale of commercial and health/benefits lines insurance products to the SMB market as well as various personal lines of insurance. It is licensed in all 50 states; (ii) Newtek Payroll and Benefits Solutions, a wholly-owned portfolio company which offers an array of industry standard and competitively priced payroll management, payment and tax reporting services to SMBs; (iii) banc-serv Partners, LLC, a wholly-owned portfolio company, provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing; and (iv) IPM a wholly-owned portfolio company which consults, strategizes, designs, and implements technology solutions for enterprise and commercial clients across the U.S.

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

NSBF has been granted Preferred Lender Program (“PLP”) status and originates, sells and services SBA 7(a) small business loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national lender, PLP status allows NSBF to expedite the origination of loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status could adversely impact our marketing efforts and ultimately our loan origination volume which could negatively impact our results of operations.

63


 
 

TABLE OF CONTENTS

As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance platform and our equity investments in certain portfolio companies that we control.

We target our debt investments, which are principally made through our business finance platform under the SBA 7(a) program, to produce a coupon rate of prime plus 2.75% which enables us to generate rapid sales of loans in the secondary market. We typically structure our debt investments with the maximum seniority 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% or more of the portfolio company’s equity.

We typically structure our debt investments 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 investments 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 have in the past and expect in the future to make selective equity investments primarily as either strategic investments to enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments 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, there can be no assurance that any such transaction would be consummated. Any of these transactions or funds may require significant management resources either during the transaction phase or on an ongoing basis depending on the terms of the transaction.

In June 2016, we invested $5,400,000 in exchange for 100% of the membership interests in BSP, a new wholly owned and controlled portfolio company. BSP provides over 350 lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing.

Revenues

We generate revenue in the form of interest, dividend, servicing and other fee income on debt and equity investments. Our debt investments typically have a term of 10 to 25 years and bear interest at prime plus a margin. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We receive servicing income related to the guaranteed portions of SBA investments which we sell into the secondary market. These

64


 
 

TABLE OF CONTENTS

recurring fees are earned daily and recorded when earned. In addition, we may generate revenue in the form of packaging, prepayment, legal and late fees. We record 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 are evaluated to determine if the distribution is income, return of capital or realized gain. We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments and assets that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments or servicing assets, as appropriate, in the consolidated statements of operations.

Expenses

Our primary operating expenses are salaries and benefits, interest expense and other general and administrative costs, such as professional fees, marketing, loan related costs and rent. Since we are an internally-managed BDC with no outside adviser or management company, the BDC incurs all the related costs to operate the Company.

Loan Portfolio Asset Quality and Composition

The following table sets forth distribution by business type of the Company’s SBA 7(a) unguaranteed loan portfolio at June 30, 2017 and December 31, 2016 (in thousands):

As of June 30, 2017

Distribution by Business Type

       
Business Type   # of
Loans
  Balance   Average
Balance
  % of
Balance
Existing Business     1,061     $ 199,381     $ 188       80.9 % 
Business Acquisition     175       33,858       193       13.7 % 
Start-Up Business     137       13,489       98       5.4 % 
Total     1,373     $ 246,728     $ 180       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 % 

65


 
 

TABLE OF CONTENTS

The following table sets forth distribution by borrower’s credit score of the Company’s SBA 7(a) unguaranteed loan portfolio at June 30, 2017 and December 31, 2016 (in thousands):

As of June 30, 2017

Distribution by Borrower Credit Score

       
Credit Score   # of
Loans
  Balance   Average
Balance
  % of
Balance
500 to 550     18     $ 2,581     $ 143       1.0 % 
551 to 600     40       7,629       191       3.1 % 
601 to 650     189       37,803       200       15.3 % 
651 to 700     400       77,290       193       31.3 % 
701 to 750     414       74,477       180       30.2 % 
751 to 800     264       41,507       157       16.9 % 
801 to 850     38       3,642       96       1.5 % 
Not available     10       1,799       180       0.7 % 
Total     1,373     $ 246,728     $ 180       100.0 % 

As of December 31, 2016

Distribution by Borrower Credit Score

       
Credit Score   # of
Loans
  Aggregate
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 table sets forth distribution by primary collateral type of the Company’s SBA 7(a) unguaranteed loan portfolio at June 30, 2017 and December 31, 2016 (in thousands):

As of June 30, 2017

Distribution by Primary Collateral Type

       
Collateral Type   # of
Loans
  Balance   Average
Balance
  % of
Balance
Commercial Real Estate     671     $ 149,623     $ 223       60.6 % 
Machinery and Equipment     217       41,121       189       16.7 % 
Residential Real Estate     290       23,665       82       9.6 % 
Other     51       17,137       336       6.9 % 
Accounts Receivable and Inventory     96       13,132       137       5.4 % 
Liquid Assets     13       659       51       0.3 % 
Furniture and Fixtures     12       583       49       0.2 % 
Unsecured     23       808       35       0.3 % 
Total     1,373     $ 246,728     $ 180       100.0 % 

66


 
 

TABLE OF CONTENTS

As of December 31, 2016

Distribution by Primary Collateral Type

       
Collateral Type   # of
Loans
  Aggregate
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 table sets forth distribution by days delinquent of the Company’s SBA 7(a) unguaranteed loan portfolio at June 30, 2017 and December 31, 2016 (in thousands):

As of June 30, 2017

Distribution by Days Delinquent

       
Delinquency Status   # of
Loans
  Balance   Average
Balance
  % of
Balance
Current     1,238     $ 219,274     $ 177       88.9 % 
1 to 30 days     48       8,464       176       3.4 % 
31 to 60 days     15       1,596       106       0.7 % 
61 to 90 days     7       1,240       177       0.5 % 
91 days or greater     65       16,154       249       6.5 % 
Total     1,373     $ 246,728     $ 180       100.0 % 

As of December 31, 2016

Distribution by Days Delinquent

       
Delinquency Status   # of
Loans
  Aggregate
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 % 

Comparison of the three months ended June 30, 2017 and 2016

Investment Income

     
(in thousands)   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Change
Investment income:
                          
Interest income   $ 4,756     $ 2,447     $ 2,309  
Dividend income     2,475       2,493       (18 ) 
Servicing income     1,723       1,659       64  
Other income     950       624       326  
Total investment income   $ 9,904     $ 7,223     $ 2,681  

67


 
 

TABLE OF CONTENTS

Interest Income

The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $220,691,000 from $172,659,000 for the three months ended June 30, 2017 and 2016, respectively, combined with an increase in the Prime Rate from 3.50% to 4.00%. 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 three months ended June 30, 2017, we recognized $852,000 of interest income related to accrued non-performing interest owed by one borrower who paid their accrued interest balance in full.

Dividend Income

     
(in thousands)   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Change
Universal Processing Services of Wisconsin, LLC (UPSW)   $ 1,750     $ 1,500     $ 250  
Premier Payments LLC (Premier)     375       450       (75 ) 
Newtek Technology Solutions, Inc. (NTS)           330       (330 ) 
International Professional Marketing, Inc. (IPM)     350             350  
Small Business Lending, LLC (SBL)           200       (200 ) 
The Secure CyberGateway, LLC           13       (13 ) 
Total dividend income   $ 2,475     $ 2,493     $ (18 ) 

Dividend income decreased from $2,493,000 to $2,475,000, period over period. We earned $1,750,000 of dividend income from UPSW, representing a $250,000 increase over dividend income earned during the three months ended June 30, 2016. We also earned $350,000 of dividend income from IPM, a new wholly-owned controlled portfolio company. These increases were offset by decreases in dividend income earned from Premier, NTS and SBL. 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 NSBF originated servicing portfolio and servicing income earned for the three months ended June 30, 2017 and 2016:

     
(in thousands):   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Change
Total NSBF originated servicing portfolio(1)   $ 1,054,583     $ 845,126     $ 209,457  
Total servicing income earned   $ 1,723     $ 1,659     $ 64  

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $755,690,000 and $613,964,000 for the three months ended June 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 $141,726,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from June 30, 2017 to June 30, 2016.

Other Income

Other income relates primarily to legal, packaging, prepayment and late fees earned from SBA loans. The increase was related to an increase in legal and packaging fees earned as a result of the larger dollar volume of loans funded.

68


 
 

TABLE OF CONTENTS

Expenses:

     
(in thousands)   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Change
Expenses:
                          
Salaries and benefits   $ 4,980     $ 3,629     $ 1,351  
Interest     2,617       1,975       642  
Depreciation and amortization     96       85       11  
Professional fees     602       954       (352 ) 
Origination and servicing     1,269       1,392       (123 ) 
Other general and administrative costs     2,020       3,269       (1,249 ) 
Total expenses   $ 11,584     $ 11,304     $ 280  

Salaries and Benefits

Salaries and benefits increased $1,351,000 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.

During the three months ended June 30, 2017, we recognized $367,000 of stock-based compensation expense related to the grant of restricted stock awards in 2016. No stock-based compensation expense was recognized during the three months ended June 30, 2016.

Interest Expense

The following is a summary of interest expense by facility for the three months ended June 30, 2017 and 2016:

     
(in thousands)   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Change
Notes payable – Securitization trusts   $ 1,391     $ 921     $ 470  
Bank notes payable     222       230       (8 ) 
Notes due 2022     177       176       1  
Notes due 2021     791       579       212  
Notes payable – related parties     31       55       (24 ) 
Other     5       14       (9 ) 
Total interest expense   $ 2,617     $ 1,975     $ 642  

In April 2016, we issued $40,250,000 of 7.0% Notes due 2021 (the “2021 Notes”). The Company incurred $791,000 in related interest expense during the three months ended June 30, 2017 on the 2021 Notes. During the three months ended June 30, 2016, we incurred only a partial quarter worth of interest expense.

Interest expense related to Notes payable — Securitization trusts increased as a result of an additional securitization transaction completed in November 2016.

Professional Fees

Professional fees consist of audit and accounting, legal and other consulting fees. The decrease in professional fees was attributed to a one time consulting fee incurred at NSBF during the three months ended June 30, 2016 which did not recur during the three months ended June 30, 2017. The decrease was also attributed to a decrease in audit and accounting fees period over period.

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

69


 
 

TABLE OF CONTENTS

West Hempstead, New York. During the three months ended June 30, 2016, we incurred a loss of $1,487,000 related to the remaining liabilities under the lease. No such expense was incurred during the three months ended June 30, 2017.

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 sale and the cost basis 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 three months ended June 30, 2017 and 2016 were $8,914,000 and $7,534,000, respectively. Realized losses were $69,000 and $0 during the three months ended June 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

       
  Three Months Ended
     June 30, 2017   June 30, 2016
(in thousands)   # of Debt
Investments
  $ Amount   # of Debt
Investments
  $ Amount
SBA non-affiliate investments funded during the quarter     134     $ 80,525       100     $ 75,827  
SBA guaranteed non-affiliate investments sold during the quarter     121     $ 61,072       90     $ 51,225  
Realized gains recognized on sale of SBA guaranteed non-affiliate investments         $ 8,983           $ 7,515  
Average sale price as a percent of principal balance(1)           112.44 %            112.17 % 

(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)   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Change
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments   $ (63 )    $ 706     $ (769 ) 
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments     1,817       478       1,339  
Net unrealized appreciation (depreciation) on controlled investments     (2,674 )      2,034       (4,708 ) 
Change in provision for deferred taxes on unrealized gains on investments     976       (833 )      1,809  
Net unrealized depreciation on non-control/non-affiliate investments           (27 )      27  
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash           (1 )      1  
Total net unrealized appreciation on investments   $ 56     $ 2,357     $ (2,301 ) 

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 to the cost basis of the guaranteed portions of loans to reflect the expected sale price of those loans. Unrealized depreciation represents the reversal of unrealized appreciation when the loans are sold.

70


 
 

TABLE OF CONTENTS

The increase in net unrealized appreciation on SBA unguaranteed non-affiliate investments was driven by an increase in the Prime Rate and assumed Prime Rate increases combined with a decrease in the discount rate on non-performing SBA unguaranteed investments. The Prime Rate increased from 3.50% to 4.25% period over period. The discount rate on non-performing SBA unguaranteed investments decreased from 7.32% to 5.71%.

Net Unrealized Appreciation (Depreciation) on Controlled Investments

     
(in thousands)   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Change
Universal Processing Services of Wisconsin, LLC (UPSW)   $     $ 900     $ (900 ) 
Newtek Technology Solutions, Inc. (NTS)     (2,209 )            (2,209 ) 
Premier Payments LLC (Premier)           2,259       (2,259 ) 
CDS Business Services, Inc. (NBCS)     1,000       (125 )      1,125  
PMTWorks Payroll, LLC (PMT)     (650 )            (650 ) 
Small Business Lending, LLC (SBL)     (800 )      (1,000 )      200  
Titanium Asset Management LLC     (15 )      (27 )      12  
Total net unrealized appreciation (depreciation)   $ (2,674 )    $ 2,007     $ (4,681 ) 

The primary driver of the increase of NBCS was a result of growth in its SBA 504 lending program and growth in Account Receivable and Inventory Financing programs. The decreases of NTS, PMT and SBL were the result of weaker than projected financial performance.

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. We recognized a benefit from deferred taxes of $976,000 related to unrealized depreciation of certain controlled portfolio companies during the three months ended June 30, 2017. During the three months ended June 30, 2016, we recognized a provision for deferred taxes of $833,000 related to unrealized appreciation of certain controlled portfolio companies.

Comparison of the six months ended June 30, 2017 and 2016

Investment Income

     
(in thousands)   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
  Change
Investment income:
                          
Interest income   $ 9,138     $ 4,980     $ 4,158  
Dividend income     4,775       4,786       (11 ) 
Servicing income     3,369       3,030       339  
Other income     1,615       1,221       394  
Total investment income   $ 18,897     $ 14,017     $ 4,880  

Interest Income

The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $214,132,000 from $165,399,000 for the six months ended June 30, 2017 and 2016, respectively, combined with an increase in the Prime Rate from 3.50% to 4.00%. 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 six months ended June 30, 2017, we recognized $1,493,000 of interest income related to accrued non-performing interest owed by two borrowers who paid their accrued interest balances in full.

71


 
 

TABLE OF CONTENTS

Dividend Income

     
(in thousands)   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
  Change
Universal Processing Services of Wisconsin, LLC (UPSW)   $ 3,500     $ 2,800     $ 700  
Premier Payments LLC (Premier)     825       900       (75 ) 
Newtek Technology Solutions, Inc. (NTS)           660       (660 ) 
International Professional Marketing, Inc. (IPM)     350             350  
Small Business Lending, LLC (SBL)     100       400       (300 ) 
The Secure CyberGateway, LLC           26       (26 ) 
Total dividend income   $ 4,775     $ 4,786     $ (11 ) 

Dividend income was flat period over period. We earned $3,500,000 of dividend income from UPSW, representing a $700,000 increase over dividend income earned during the six months ended June 30, 2016. We also earned $350,000 of dividend income from IPM, a new wholly-owned controlled portfolio company. These increases were offset by decreases in dividend income earned from Premier, NTS and SBL. 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 NSBF originated servicing portfolio and servicing income earned for the six months ended June 30, 2017 and 2016:

     
(in thousands):   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
  Change
Total NSBF originated servicing portfolio(1)   $ 1,054,583     $ 845,126     $ 209,457  
Total servicing income earned   $ 3,369     $ 3,030     $ 339  

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $741,785,000 and $602,463,000 for the six months ended June 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 $139,322,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from June 30, 2017 to June 30, 2016.

Other Income

Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA loans. The increase was related to an increase in legal and packaging fees earned as a result of the larger dollar volume of loans funded.

72


 
 

TABLE OF CONTENTS

Expenses:

     
(in thousands)   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
  Change
Expenses:
                          
Salaries and benefits   $ 9,631     $ 6,973     $ 2,658  
Interest     5,147       3,463       1,684  
Depreciation and amortization     185       125       60  
Professional fees     1,449       1,712       (263 ) 
Origination and servicing     2,653       2,653        
Other general and administrative costs     3,605       4,552       (947 ) 
Total expenses   $ 22,670     $ 19,478     $ 3,192  

Salaries and Benefits

Salaries and benefits increased $2,658,000 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.

During the six months ended June 30, 2017, we recognized $752,000 of stock-based compensation expense related to the grant of restricted stock awards in 2016. No stock-based compensation expense was recognized during the six months ended June 30, 2016.

Interest Expense

The following is a summary of interest expense by facility for the six months ended June 30, 2017 and 2016:

     
(in thousands)   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
  Change
Notes payable – Securitization trusts   $ 2,803     $ 1,879     $ 924  
Bank notes payable     360       447       (87 ) 
Notes due 2022     353       354       (1 ) 
Notes due 2021     1,581       579       1,002  
Notes payable – related parties     40       177       (137 ) 
Other     10       27       (17 ) 
Total interest expense   $ 5,147     $ 3,463     $ 1,684  

In April 2016, we issued $40,250,000 of 7.0% Notes due 2021 (the “2021 Notes”). We incurred $1,581,000 in related interest expense during the six months ended June 30, 2017 on the 2021 Notes. During the six months ended June 30, 2016, we incurred only a partial quarter worth of interest expense.

Interest expense related to Notes payable — Securitization trusts increased as a result of an additional securitization transaction completed in November 2016.

Professional Fees

Professional fees consist of audit and accounting, legal and other consulting fees. The decrease in professional fees was attributed to a one time consulting fee incurred at NSBF during the six months ended June 30, 2016 which did not recur during the six months ended June 30, 2017. The decrease was also attributed to a decrease in audit and accounting fees period over period.

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 six months ended June 30, 2016, we incurred a loss of $1,487,000 related

73


 
 

TABLE OF CONTENTS

to the remaining liabilities under the lease. No such expense was incurred during the six months ended June 30, 2017. This was offset by $674,000 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 or sale and the cost basis 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 six months ended June 30, 2017 and 2016 were $17,599,000 and $13,820,000, respectively. Realized losses were $43,000 and $0 during the six months ended June 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

       
  Six Months Ended
     June 30, 2017   June 30, 2016
(in thousands)   # of Debt
Investments
  $
Amount
  # of Debt
Investments
  $
Amount
SBA non-affiliate investments funded during the period     217     $ 159,169       199     $ 131,884  
SBA guaranteed non-affiliate investments sold during the period     205     $ 120,884       189     $ 93,718  
Realized gains recognized on sale of SBA guaranteed non-affiliate investments         $ 17,642           $ 13,791  
Average sale price as a percent of principal balance(1)           112.24 %            112.28 % 

(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)   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
  Change
Net unrealized appreciation on SBA guaranteed non-affiliate investments   $ 50     $ 768     $ (718 ) 
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments     1,261       (549 )      1,810  
Net unrealized (depreciation) appreciation on controlled investments     (1,743 )      5,724       (7,467 ) 
Change in provision for deferred taxes on unrealized gains and losses on investments     410       (2,441 )      2,851  
Net unrealized depreciation on non-control/non-affiliate investments           (43 )      43  
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash           (1 )      1  
Total net unrealized (depreciation) appreciation on investments   $ (22 )    $ 3,458     $ (3,480 ) 

Net unrealized appreciation 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 to the cost basis of the guaranteed portions of loans to reflect the expected sale price of those loans. Unrealized depreciation represents the reversal of unrealized appreciation when the loans are sold.

74


 
 

TABLE OF CONTENTS

The increase in net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments was driven by an increase in the Prime Rate and assumed Prime Rate increases combined with a decrease in the discount rate on non-performing SBA unguaranteed investments. The Prime Rate increased from 3.50% to 4.25% period over period. The discount rate on non-performing SBA unguaranteed investments decreased from 7.32% to 5.71%.

Net Unrealized (Depreciation) Appreciation on Controlled Investments

     
(in thousands)   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
  Change
Universal Processing Services of Wisconsin, LLC (UPSW)   $ 1,000     $ 3,700     $ (2,700 ) 
Newtek Technology Solutions, Inc. (NTS)     (2,559 )            (2,559 ) 
Premier Payments LLC (Premier)           3,247       (3,247 ) 
CDS Business Services, Inc. (NBCS)     2,750       (225 )      2,975  
PMTWorks Payroll, LLC (PMT)     (2,045 )            (2,045 ) 
Small Business Lending, LLC (SBL)     (800 )      (1,000 )      200  
The Secure CyberGateway, LLC           2       (2 ) 
Titanium Asset Management LLC     (42 )      (43 )      1  
Excel WebSolutions, LLC     (47 )            (47 ) 
Total net unrealized (depreciation) appreciation   $ (1,743 )    $ 5,681     $ (7,424 ) 

The primary driver of the increase of NBCS was a result of growth in its SBA 504 lending program and growth in Account Receivable and Inventory Financing programs. The decreases of NTS, PMT and SBL were the result of weaker than projected financial performance.

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. We recognized a benefit from deferred taxes of $410,000 related to unrealized depreciation of certain controlled portfolio companies during the six months ended June 30, 2017. During the six months ended June 30, 2016, we recognized a provision for deferred taxes of $2,441,000 related to unrealized appreciation of certain controlled portfolio companies.

Comparison of the year ended December 31, 2016 and 2015

Investment Income

     
(in thousands)   December 31,
2016
  December 31,
2015
  Change
Investment income:
                          
Interest income   $ 11,518     $ 9,201     $ 2,317  
Dividend income     10,573       10,218       355  
Servicing income     6,160       4,611       1,549  
Other income     2,714       2,040       674  
Total investment income   $ 30,965     $ 26,070     $ 4,895  

Interest Income

The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $176,210,000 from $136,964,000 for the years ended December 31, 2016 and 2015, respectively, as well as the increase in the Prime Rate from 3.25% to 3.50% in December 2015. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments year over year.

75


 
 

TABLE OF CONTENTS

Dividend Income

Dividend income is dependent on portfolio company earnings. Current year dividend income may not be indicative of future year dividend income.

The increase in dividend income is primarily related to an increase of dividends generated from Premier of $1,135,000, an increase of $682,000 in dividends generated from NTS, an increase of $348,000 in dividends generated from SBL, an increase of $210,000 in dividends generated from UPSW, and $300,000 of dividends generated from BSP, a new wholly owned controlled portfolio company investment we made in June 2016. These increases were offset by one-time dividends of $1,080,000 and $1,162,000 received from Exponential Business Development Co., Inc. and Summit Systems and Designs, LLC, respectively in 2015, both of which are no longer operating portfolio company businesses.

NSBF Servicing Portfolio and Related Servicing Income

The following table represents NSBF originated servicing portfolio and servicing income earned for the years ended December 31, 2016 and 2015:

     
(in thousands):   December 31,
2016
  December 31,
2015
  Change
Total NSBF originated servicing portfolio(1)   $ 960,517     $ 768,588     $ 191,929  
Total servicing income earned   $ 6,160     $ 4,611     $ 1,549  

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $633,126,000 and $520,794,000 for the years ended December 31, 2016 and 2015, 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 $112,332,000 year over year. The increase was a direct result of increased investments in SBA 7(a) non-affiliate investments from 2015 to 2016.

Other Income

Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA loans. The increase is related to the increase in the number of loans funded to 402 for the year ended December 31, 2016 from 292 during the year ended December 31, 2015. This increase resulted in an increase in legal and packaging fees earned on such loans.

Expenses:

     
(in thousands)   December 31,
2016
  December 31,
2015
  Change
Salaries and benefits   $ 15,234     $ 12,753     $ 2,481  
Interest     8,440       6,479       1,961  
Depreciation and amortization     296       326       (30 ) 
Other general and administrative costs     16,255       12,697       3,558  
Total expenses   $ 40,225     $ 32,255     $ 7,970  

Salaries and Benefits

Salaries and benefits increased $2,481,000 primarily due to an increase in employees at NSBF performing underwriting, processing, closing and servicing functions as a result of the increase in annual loan originations. The increase was also attributable to $577,000 of stock based compensation expense incurred during the year ended December 31, 2016 related to the issuance of restricted stock awards to employees. No stock based compensation expense was incurred during the year ended December 31, 2016.

76


 
 

TABLE OF CONTENTS

Interest Expense

The following is a summary of interest expense by facility for the years ended December 31, 2016 and 2015:

     
(in thousands)   December 31,
2016
  December 31,
2015
  Change
Notes payable – Securitization Trusts   $ 3,976     $ 3,810     $ 166  
Bank notes payable     1,267       1,166       101  
Capital One term loan and line of credit (NBS)           564       (564 ) 
Notes due 2022     708       192       516  
Notes due 2021     2,181             2,181  
Notes payable – related parties     260       621       (361 ) 
Notes payable in credits in lieu of cash     43       80       (37 ) 
Other     5       46       (41 ) 
Total interest expense   $ 8,440     $ 6,479     $ 1,961  

In September 2015 and April 2016, the Company issued $8,324,000 of 7.50% Notes due 2022, and $40,250,000 of 7.00% Notes due 2021, respectively. The Company incurred $2,889,000 in related interest expense during the year ended December 31, 2016 on the Notes. The increase is attributed to incurring a full year of interest expense on the Notes due 2022 and the issuance of the Notes due 2021 in 2016. Interest expense on notes payable — related parties was $260,000 and $621,000 during the years ended December 31, 2016 and 2015, respectively, and represents interest on amounts borrowed under an unsecured revolving line of credit extended by UPSW and NTS. The decrease is attributed to a decrease in the average outstanding balance on Notes payable — related parties during the year. In June 2014, the Company entered into a four year $20,000,000 credit agreement with Capital One consisting of a $10,000,000 term loan and a revolving line of credit of up to $10,000,000. The NBS Capital One term loan and line of credit were paid in full and extinguished in June 2015, and as such, no interest expense was incurred during the year ended December 31, 2015.

Other General and Administrative Costs

Other general and administrative costs include professional fees, marketing, loan related costs, rent and loss on lease expense. The increase in other general and administrative costs is primarily related to an increase in loan related costs, rent expense and loss on lease expense. Loan related costs include referral fees, servicing expenses, appraisal fees, legal fees, search fees and other collateral preservation costs. Loan related costs increase as the number of loans we originate and service increase. At December 31, 2016, our loan portfolio consisted of 1,228 SBA 7(a) loans as compared to 948 at December 31, 2015. Loan related costs increased $1,775,000 year over year as a result of the increase in the loan portfolio. Additionally, rent expense increased as a result of the move to our Lake Success offices.

In April 2016, the Company moved its headquarters to Lake Success, New York. As a result, the Company vacated its spaces in West Hempstead, New York and New York, New York. The Company recorded a loss of $604,000 related to the remaining liabilities under the West Hempstead lease, offset by future rental income, during the year ended December 31, 2016. The Company has sublet both spaces.

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 sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. Realized gains for the year ended December 31, 2016 and 2015 were $32,437,000 and $29,575,000, respectively. Realized losses were $925,000 and $1,189,000 during the years ended December 31, 2016 and 2015, 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.

77


 
 

TABLE OF CONTENTS

Net Realized Gains on SBA Non-Affiliate Investments

       
  Year Ended
     December 31, 2016   December 31, 2015
(in thousands)   # of Debt
Investments
  $ Amount   # of Debt
Investments
  $ Amount
SBA non-affiliate investments funded     402     $ 309,147       292     $ 242,496  
SBA guaranteed non-affiliate investments sold     379     $ 226,435       304     $ 211,089  
Realized gains recognized on sale of SBA guaranteed non-affiliate investments         $ 32,437           $ 29,575  
Average sale price as a percent of principal balance(1)              111.91 %               111.72 % 

(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 Realized Gains on Controlled Investments

For the year ended December 31, 2016, realized gains on controlled investments were $108,000 and primarily represented distributions from SBL in excess of our cost basis. For the year ended December 31, 2015, realized gains on controlled investments were $5,473,000 and represent distributions in excess of our cost basis from controlled affiliates. Included in the $5,473,000 is a distribution in excess of basis from UPSW and First Bankcard Alliance of Alabama, LLC of $4,892,000 and $572,000, respectively.

Net Unrealized Appreciation (Depreciation) on Investments

     
(in thousands)   December 31,
2016
  December 31,
2015
  Change
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments   $ 1,035     $ (3,215 )    $ 4,250  
Net unrealized appreciation on SBA unguaranteed non-affiliate investments     18       1,183       (1,165 ) 
Net unrealized appreciation on controlled investments     11,337       12,250       (913 ) 
Change in provision for deferred taxes on net unrealized gains on investments     (5,128 )      (857 )      (4,271 ) 
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash     (5 )      (7 )      2  
Net unrealized depreciation on non-control/non-affiliate investments     (43 )      (24 )      (19 ) 
Total net unrealized appreciation on investments   $ 7,214     $ 9,330     $ (2,116 ) 

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.

The decrease in net unrealized appreciation on SBA unguaranteed non-affiliate investments resulted from an increase in discount rates on performing SBA unguaranteed non-affiliate investments. The discount rate increased from 5.30% to 5.50% year over year on performing SBA unguaranteed non-affiliate investments.

Net unrealized appreciation on controlled investments for the year ended December 31, 2016 consisted of unrealized appreciation of $10,552,000 and $4,562,000 on our investments in UPSW and Premier, respectively offset by unrealized depreciation of $2,200,000, $975,000, and $175,000 on our investments in SBL, NTS, and NBC, respectively. The primary driver of the increases were increases in multiples of comparable companies and increases in revenue growth projections. The decrease in SBL, NTS, and NBC was based on weaker than projected financial performance. Net unrealized appreciation on controlled investments was $12,250,000 for the year ended December 31, 2015. This consisted primarily of $6,948,000 of unrealized

78


 
 

TABLE OF CONTENTS

appreciation on our investment in UPSW and $5,565,000 of unrealized appreciation on our investment in SBL which were offset by unrealized depreciation of approximately $966,000 on our investment in NBC. The primary driver of the increase in UPSW was better than projected financial performance and an increase in multiples of comparable companies. The primary driver for the increase in SBL was the addition of a new third party servicing contract which provides a longer-term stable revenue stream.

Provision for Deferred Taxes on Net Unrealized Appreciation of Investments

Certain consolidated subsidiaries of ours 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 years ended December 31, 2016 and 2015 we recognized a provision for deferred taxes on net unrealized gains of $5,128,000 and $857,000, respectively. The increase is mainly attributed to unrealized gains related to our investments in UPSW and Premier.

Net Unrealized Depreciation on Servicing Assets

     
(in thousands)   December 31, 2016   December 31, 2015   Change
Net unrealized depreciation on servicing assets   $ (2,269 )    $ (1,268 )    $ (1,001 ) 

The increase in unrealized depreciation on servicing assets is primarily related to the increase in the discount rate from 12.03% to 12.20% and an increase in the cumulative prepayment rate from 15.5% to 18.5%.

Consolidated Results of Operations — Year Ended December 31, 2015 Compared to 2014

The discussion of consolidated results of operations below compare the year ended December 31, 2015 to the period November 12, 2014 to December 31, 2014 (as a BDC) and the period ended November 11, 2014 (prior to the BDC Conversion). Where applicable, we have combined the two periods ended December 31, 2014 for comparison to the year ended December 31, 2015 as we believe this provides the most useful comparison of our year over year results.

Investment Income

Investment income for the year ended December 31, 2015 was $26,070,000 compared with total investment income of $1,976,000 for the period November 12, 2014 to December 31, 2014 and operating revenues of $131,847,000 for the period ended November 11, 2014. As a result of the BDC Conversion, there is no electronic payment processing revenue, web hosting and design revenue, servicing fee income from external portfolios, insurance commission revenue, and other income related to our payroll processing and accounts receivable financing and billing services included in the results for the year ended December 31, 2015.

Interest Income

Substantially all interest income for the year ended December 31, 2015 and combined periods ended December 31, 2014 was derived from SBA non-affiliate investments/loans. Interest income derived from SBA non-affiliate investments was $8,879,000 and $6,651,000 for the year ended December 31, 2015 and combined periods ended December 31, 2014, respectively. The increase in interest income is attributable to the average outstanding performing portfolio of SBA non-affiliate investments/loans increasing to $136,964,000 from $104,540,000 for the year ended December 31, 2015 and combined periods ended December 31, 2014, respectively. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period.

79


 
 

TABLE OF CONTENTS

NSBF Servicing Portfolio and Related Servicing Income

The following table represents NSBF originated servicing portfolio and servicing income earned for the year ended December 31, 2015 and combined periods ended December 31, 2014:

       
(In thousands):   Year ended
December 31,
2015
  Combined
periods ended
December 31,
2014
  $ Change   % Change
Total NSBF originated servicing portfolio(1)   $ 768,588     $ 631,285     $ 137,303       22 % 
Total servicing income earned   $ 4,611     $ 3,673     $ 938       26 % 

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $520,794,000 and $421,001,000 for the year ended December 31, 2015 and for the combined periods ended December 31, 2014, respectively.

Servicing fee income from the NSBF originated portfolio increased by $938,000 for the year ended December 31, 2015 compared to the combined periods ended December 31, 2014. The increase was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio increased $137,303,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from 2014 to 2015. There was no servicing fee income recognized for loans serviced for third parties for the year ended December 31, 2015. This third party servicing revenue, which was previously included in consolidated results, is recognized and earned by one of the Company’s controlled portfolio companies, SBL. Total third party servicing fee income earned for the period ended November 11, 2014 was $6,142,000.

Dividend Income

Dividend income earned during the year ended December 31, 2015 was $10,218,000 and was earned from the following portfolio companies:

 
Portfolio Company (in thousands)   Year ended
December 31,
2015
Universal Processing Services of Wisconsin, LLC   $ 6,590  
CrystalTech Web Hosting, Inc.     308  
Small Business Lending, Inc.     348  
Premier Payments LLC     600  
Exponential Business Development Co., Inc.     1,080  
Secure Cybergateway Services, LLC     52  
First Bankcard Alliance of Alabama, LLC     78  
Summit Systems and Design, LLC     1,162  
Total Dividends   $ 10,218  

No dividend income was earned during the combined periods ended December 31, 2014.

Other Income

Other income of $2,040,000 for the year ended December 31, 2015 relates primarily to legal, packaging, prepayment, and late fees earned from SBA loans. Other income is not comparable period over period as 2014 amounts include revenue from certain controlled portfolio companies which were consolidated subsidiaries through November 11, 2014.

80


 
 

TABLE OF CONTENTS

Adjusted Net Investment Income

We utilize adjusted net investment income as a measure of our current and future financial performance. Adjusted net investment income is a non-GAAP financial measure and is not intended as an alternative measure of investment income as determined in accordance with GAAP. In addition, our calculation of adjusted net investment income is not necessarily comparable to similar measures as calculated by other companies that do not use the same definition or implementation guidelines. The table below reconciles net investment loss to adjusted net investment income.

   
(in thousands)   Year ended
December 31,
2015
  Period
November 12,
2014 to
December 31,
2014
Net investment loss   $ (6,185 )    $ (2,523 ) 
Net realized gain on non-affiliate debt investments     28,386       595  
Adjusted net investment income (loss)   $ 22,201     $ (1,928 ) 

For the period ended November 11, 2014, the Company did not operate as a BDC and therefore did not have net investment or adjusted net investment income. We believe this is a useful measure as it depicts the current income generated from our investment activities during the period. We include net realized gains on debt investments because they are recurring income related to the sale of SBA guaranteed non-affiliate investments in the secondary market.

Expenses

Total expenses decreased from $125,341,000 to $32,255,000 for the combined periods ended December 31, 2014 to the year ended December 31, 2015 as a result of the conversion to a BDC in November 2014. Electronic payment processing costs, salaries and benefits, depreciation and amortization, and other general and administrative expenses related to certain subsidiaries in 2014 are not included in 2015 results. As previously discussed, certain consolidated subsidiaries in 2014 are now reflected as investments in controlled portfolio companies and their results of operations are not included in 2015.

Interest Expense

Interest expense decreased by $1,412,000 for the year ended December 31, 2015 compared to the combined periods ended December 31, 2014. The following table highlights the components of interest expense for each period:

     
(in thousands)   Year ended
December 31,
2015
  Combined
periods ended
December 31,
2014
  Change
Securitization trust VIE (NSBF)   $ 3,810     $ 3,081     $ 729  
Summit Partners Credit Advisors, L.P. (NBS)           2,991       (2,991 ) 
Capital One lines of credit (NSBF)     1,166       1,072       94  
Capital One term loan and line of credit (NBS)     565       371       194  
Notes due 2022     192             192  
Related party note     621             621  
Sterling line of credit (NBC)           292       (292 ) 
Other     125       84       41  
Total interest expense   $ 6,479     $ 7,891     $ (1,412 ) 

Interest expense related to securitizations increased as a result of additional securitization transactions completed in December 2014 and September 2015. In June 2014, the Company entered into a four year $20,000,000 credit agreement with Capital One, consisting of a $10,000,000 term loan and a revolving line of credit of up to $10,000,000. The term loan was obtained to pay off the Summit Partners debt which carried a higher interest rate. The net reduction in interest expense was $2,797,000. In June 2015, the Company received $19,119,000 under an unsecured revolving line of credit extended by UPSW and NTS and incurred $621,000 in interest expense for the year ended December 31, 2015. In addition, $192,000 of interest expense

81


 
 

TABLE OF CONTENTS

was incurred on the Notes Due 2022. For the year ended December 31, 2015, the Company did not incur interest expense related to the Sterling line of credit as it relates to Newtek Business Credit, a controlled portfolio company. Prior to the BDC Conversion, Newtek Business Credit was a consolidated subsidiary.

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 sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. Realized gains for the year ended December 31, 2015 were approximately $35,047,000 offset by approximately $1,189,000 of realized losses. 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

       
(In thousands)   Year ended
December 31, 2015
  Combined periods ended December 31, 2014
  # of Debt
Investments
  $ Amount   # of Debt
Investments
  $ Amount
SBA non-affiliate investments originated     292     $ 242,496       193     $ 202,269  
SBA guaranteed non-affiliate investments sold     304     $ 211,089       163     $ 130,356  
Realized gains recognized on sale of SBA guaranteed non-affiliate investments         $ 29,575           $ 869  
Premium income recognized         $           $ 18,623  
Average sale price as a percent of principal balance(1)           111.72 %            112.49 % 

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

Realized gains from the sale of SBA non-affiliate investments for the year ended December 31, 2015 were $29,575,000 compared to $869,000 for the period November 12, 2014 to December 31, 2014. Premium income for the period ended November 11, 2014 was $18,623,000. Realized gains are comparable to premium income. Premium income relates to income earned from the sale of SBA loans. Subsequent to the BDC Conversion, the income related to these sales are recorded as realized gains. The increase is attributed to the increase in SBA investments sold which was partially offset by a decrease in the average sale premium from 112.49% for the combined periods ended December 31, 2014 to 111.72% for the year ended December 31, 2015.

Net Realized Gains on Controlled Investments

For the year ended December 31, 2015, realized gains on controlled investments were $5,473,000 and represent distributions in excess of our cost basis from controlled affiliates. Included in the $5,473,000 is a distribution in excess of basis from UPSW of approximately $4,892,000 and approximately $572,000 in a distribution in excess of basis from First Bankcard Alliance of Alabama, LLC.

Net Unrealized Appreciation (Depreciation) on Investments

Unrealized appreciation on SBA guaranteed non-affiliate investments for the year ended December 31, 2015 was $7,395,000. This appreciation relates to guaranteed portions of SBA investments made for which we sold into a secondary market. Unrealized depreciation of SBA guaranteed investments was $10,610,000 which represents the reversal of the unrealized appreciation of SBA guaranteed non-affiliate investments sold during the year. Net unrealized appreciation on SBA unguaranteed non-affiliate investments resulted from fair value adjustments on new investments.

Net unrealized appreciation on controlled investments was $12,250,000 for the year ended December 31, 2015. This consisted primarily of $6,948,000 of unrealized appreciation on our investment in UPSW and

82


 
 

TABLE OF CONTENTS

$5,565,000 of unrealized appreciation on our investment in SBL which were offset by unrealized depreciation of approximately $966,000 on our investment in NBC. The primary driver of the increase in UPSW was better than projected financial performance and an increase in multiples of comparable companies. The primary driver for the increase in SBL was the addition of a new third party servicing contract which provides a longer-term stable revenue stream.

Provision for Deferred Taxes on Unrealized Appreciation on Investments

Certain consolidated subsidiaries of ours 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. For the years ended December 31, 2015 and 2014, the Company recognized a provision for deferred tax on unrealized gains of $857,000 and $0 for consolidated subsidiaries, respectively.

Net Unrealized Depreciation on Servicing Assets

The unrealized depreciation on servicing assets was $1,268,000 and $120,000 for the year ended December 31, 2015 and the period November 12, 2014 to December 31, 2014, respectively. Until November 11, 2014, servicing assets were recorded using the amortization method. As a result of the BDC Conversion, servicing assets are recorded at fair value at December 31, 2015.

Amortization expense related to servicing assets was $1,366,000 for the period ended November 11, 2014 and is included in depreciation and amortization expense in the consolidated statements of operations.

Liquidity and Capital Resources

Overview

Our liquidity and capital resources are derived from our Capital One Facility, Notes payable — related parties, 2021 Notes, 2022 Notes, securitization transactions and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies 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. We may raise additional equity or debt capital through both registered offerings off a shelf registration, including “At-The-Market”, or ATM, and private offerings of securities.

Public Offerings

ATM Program

In March 2017, we entered into an ATM equity distribution agreement with JMP Securities LLC, Compass Point Research & Trading, LLC, and Ladenburg Thalmann & Co. (each a “Placement Agent” and collectively, the “Placement Agents”). The equity distribution agreement provides that we may offer and sell up to 2,900,000 shares of common stock from time to time through the Placement Agents. During the six months ended June 30, 2017, we sold 140,000 shares of our common stock at a weighted average price of $17.56 per share. Proceeds, net of offering costs and expenses were $2,409,000. The Company may offer up to an additional 2,760,000 shares of common stock under the ATM.

We intend to use 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 we completed a public offering of 2,250,000 shares 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 to the underwriter’s full exercise of the over-allotment option. Proceeds, net of offering costs and expenses were $37,041,000.

83


 
 

TABLE OF CONTENTS

Debt Offerings

In April 2016, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the Second Supplemental Indenture (the “Second 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 aggregate principal amount of 7.0% Notes due 2021 (the “2021 Notes”). The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the Notes generated proceeds of approximately $33,750,000, 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 2021 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 2021 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 2021 Notes will mature on March 31, 2021 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 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. The 2021 Notes bear interest at a rate of 7.0% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on June 30, 2016, and trade on the Nasdaq Global Market under the trading symbol “NEWTL.”

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 Securities Exchange Act of 1934, as amended (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 June 30, 2017, the Company was in compliance with all covenants related to the 2021 Notes.

In September 2015, the Company and the Trustee entered into the Base Indenture and the First Supplemental Indenture relating to the Company’s issuance, offer, and sale of $8,324,000, including the underwriter’s partial exercise of their over-allotment option, in aggregate principal amount of the 7.5% Notes due 2022 (the “2022 Notes”). The 2022 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 2022 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 2022 Notes will mature on September 30, 2022 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, 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 net of offering costs and expenses were $7,747,000.

84


 
 

TABLE OF CONTENTS

The Base Indenture, as supplemented by the First 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 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 the Second 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 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. At June 30, 2017, the Company is in compliance with all covenants related to the 2022 Notes.

Capital One Facilities

In May 2017, NSBF amended its Capital One facility to increase the facility from $50,000,000 to $100,000,000 and provided a reduction in interest rates. The interest rate on the portion of the facility, collateralized by the government guaranteed portion of SBA 7(a) loans, is set at Prime minus 0.25% (previously Prime plus 1.00%), 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 at 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 provides for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originates. In addition, the amendment extended the date on which the facility will convert to a term loan from May 16, 2017 to May 11, 2020 and extended the maturity date of the facility to May 11, 2022.

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 June 30, 2017, we had $19,000,000 and $21,045,000 outstanding under the unguaranteed and guaranteed lines of credit, respectively. At June 30, 2017, we were in full compliance with all applicable loan covenants.

Notes Payable — Related Parties

In June 2015, the Company entered into an unsecured revolving line of credit agreement with UPSW and NTS. Maximum borrowings under the line of credit were $38,000,000. In June 2017, the agreement was amended to increase maximum borrowings under the line to $50,000,000. The outstanding balance bears interest at a rate equal to a) LIBOR plus (b) 6% or at a rate equal to (y) the greater of the Prime Rate or 3.5% plus (z) 5%. At June 30, 2017, the line of credit bears interest at a rate of 7.13%. The amended revolving line of credit has a maturity date of June 21, 2021. Outstanding borrowings at June 30, 2017 were $15,741,000.

Securitization Transactions

Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses 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 in SBA Unguaranteed Non-Affiliate Investments and reflects the associated financing in Notes Payable — Securitization Trusts.

85


 
 

TABLE OF CONTENTS

In November 2016, NSBF completed its seventh securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans to the Newtek Small Business Loan Trust, Series 2016-1 (the “2016-1 Trust”). The 2016-1 Trust in turn issued securitization notes for the par amount of $53,444,000, consisting of $43,632,000 Class A notes and $9,812,000 of Class B notes, against the 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 February 2042.

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 six months ended June 30, 2016, 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 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 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 comply with the provisions of 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 six months ended June 30, 2017.

Cash Flows and Liquidity

As of June 30, 2017, the Company’s unused sources of liquidity consisted of $21,475,000 available through the Capital One facility; $20,812,000 available through notes payable with related parties; $3,550,000 in unrestricted cash and $35,000 in money market funds.

Restricted cash of $23,594,000 as of June 30, 2017 is primarily held at NSBF. The majority, or $22,843,000 of restricted cash includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations, loan principal and interest collected which are due to loan participants and a reserve established as part of a voluntary agreement with the SBA.

The Company generated and used cash as follows:

   
(in thousands)   Six months
ended
June 30,
2017
  Six months
ended
June 30,
2016
Net cash (used in) provided by operating activities   $ (54,754 )    $ 5,068  
Net cash used in investing activities     (284 )      (255 ) 
Net cash provided by (used in) financing activities     56,537       (5,900 ) 
Net increase (decrease) in cash and cash equivalents     1,499       (1,087 ) 
Cash and cash equivalents, beginning of period     2,051       4,308  
Cash and cash equivalents, end of period   $ 3,550     $ 3,221  

86


 
 

TABLE OF CONTENTS

During the six months ended June 30, 2017, operating activities used cash of $54,754,000, consisting primarily of (i) an increase in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded but had not settled before period end and represent the amount of cash due from the purchasing broker; the amount varies depending on loan origination volume and timing of sales at period end, (ii) $159,169,000 of SBA 7(a) loan investments (iii) $11,030,000 of advances to NBCS under a revolving line of credit (iv) $9,752,000 of cash paid 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) a decrease in restricted cash of $1,614,000. These decreases were offset by (i) $138,526,000 of proceeds from the sale of SBA 7(a) investments and (ii) $21,067,000 of principal payments received from controlled and non-affiliate investments.

Net cash provided by financing activities was $56,537,000 consisting primarily of (i) net proceeds $37,042,000 from the sale of 2,857,500 shares of common stock, (ii) net proceeds of $2,409,000 from the sale of 140,000 shares of common stock under an ATM program, (iii) net borrowings of $34,945,000 from our Capital One lines of credit and (iv) $14,341,000 of proceeds under a related party revolving line of credit. These increases were offset by (i) $13,067,000 of dividend payments and (ii) $17,516,000 of principal payments related to securitizations.

2016

For the year ended December 31, 2016, cash and cash equivalents decreased by $2,257,000 which was primarily the net result of $10,912,000 of cash used for operating activities and $9,030,000 of cash provided by financing activities.

During the year we used $10,912,000 of cash for our operating activities consisting primarily of (i) $309,147,000 of SBA 7(a) loan investments, (ii) a $5,400,000 investment in 100% of the membership interests of banc-serv Partners, LLC, (iii) a $2,057,000 repurchase of a loan from the SBA, (iv) a non-controlled/non-affiliate debt investment of $1,020,000 in Excel WebSolutions, LLC and (v) $775,000 of additional investments in PMT. These uses were offset by (i) $258,873,000 of proceeds from the sale of SBA 7(a) investments (ii) the decrease in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded but had not yet settled before period end and represent the amount of cash due from the purchasing broker; the amount varies depending on loan origination volume and timing of sales at period end, (iii) $26,909,000 of principal payments received from affiliate and non-affiliate investments and (iv) a decrease in restricted cash of $3,187,000.

Net cash provided by financing activities was $9,030,000 consisting primarily of (i) proceeds of $38,510,000, net of deferred financing costs from our offer and sale of 7.00% Notes due 2021, (ii) issuance of additional senior notes of $53,444,000 offset by (i) dividend payments of $27,300,000, (ii) principal payments of $24,379,000 related on Notes payable — Securitization Trusts, (iii) $24,000,000 of net repayments on the Capital One line of credit (iv) $4,247,000 of net principal payments on Notes payable — related parties and (v) $866,000 of common share repurchases.

2015

For the year ended December 31, 2015, we experienced a net decrease in cash and cash equivalents of $13,505,000 which is primarily the net result of $37,951,000 of cash used for operating activities and $24,144,000 provided by financing activities.

During the year we used $37,951,000 of cash for our operating activities consisting primarily of (i) new portfolio investments of $262,499,000, of which approximately $14,030,000 was used to purchase Premier Payments LLC, $2,200,000 was used to fund a new debt investment, Titanium Asset Management LLC, and approximately $242,496,000 was used to originate SBA 7(a) loan investments, (ii) increase in broker receivable and servicing assets of $32,083,000 and $4,827,000, respectively, (iii) increase in restricted cash of $12,665,000. The foregoing uses of cash were partially offset by (i) proceeds from the sale of investments of $240,663,000 (ii) principal received from portfolio company investments of $21,638,000 and (iii) distributions from portfolio companies deemed return of investment or capital gains of $9,218,000. In addition, financing activities provided cash of $24,144,000, consisting primarily of (i) net proceeds from a public offering of common stock of $35,290,000, (ii) proceeds from a public bond offering of $8,324,000, (iii) net borrowings from a related party of $5,647,000, (iv) issuance of additional senior notes of $32,029,000 partially offset by (i) cash dividends paid of $24,306,000 and (ii) total principal payments on debt of $33,916,000.

87


 
 

TABLE OF CONTENTS

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.

Fair Value Measurements

We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our Board under our valuation policy and process. We may seek pricing information with respect to certain of our investments from pricing services or brokers or dealers in order to value such investments. We also employ independent third party valuation firms for certain of our investments 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 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 readily available market value existed for such investments 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 2 Observable 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.

88


 
 

TABLE OF CONTENTS

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 3 Unobservable 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.

Valuation of Investments

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 and its earnings and discounted cash flows, the markets 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 net income before net interest expense, income tax expense, depreciation and amortization (“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.

The Board employs independent third party valuation firms for certain of the Company’s investments for which there is not a readily available market value. Specifically, the Board consults with an independent valuation firm on an annual basis to value certain of its controlled portfolio companies, pursuant to the Company’s valuation policy and process. The company also uses a third party valuation firm to consult on an annual basis for the Company’s servicing asset valuation, pursuant to the Company’s valuation policy and process. The Company generally does not use an independent valuation consultant for controlled investments with values under $5.0 million. 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.

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.

89


 
 

TABLE OF CONTENTS

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 method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect 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.

We receive servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.

We receive 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 is recorded when earned.

Dividend income is recorded at the time dividends are declared. Distributions of earnings from a portfolio companies are evaluated to determine if the distribution is income, return of capital or realized gain.

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.

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.

December 31, 2016 and 2015, 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 $5,983,000 and $857,000 at December 31, 2016 and 2015, respectively and are recorded as deferred tax liabilities on the 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 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 require 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 ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

In February 2016, the Financial Accounting Standards Board (“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.

90


 
 

TABLE OF CONTENTS

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 is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

Off Balance Sheet Arrangements

There were no off balance sheet arrangements as of June 30, 2017.

Recent Developments

Elimination and Consolidation of CIO Position

Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. In addition, the Company has recently created the position of Director of Information Technology and retained Jesse H. Davis in this position.

Results of August 11, 2017 Special Meeting of Shareholders

The Company held a Special Meeting of Shareholders on July 26, 2017, which meeting was adjourned to permit the further solicitation of proxies. The Special Meeting of Shareholders was reconvened on August 11, 2017. The proposal considered at the Special Meeting is described in detail in the Company’s definitive proxy statement for the Special Meeting as filed with the Securities and Exchange Commission on June 19, 2017 (the “Special Meeting Proxy”). At the Special Meeting of Shareholders, the Company’s shareholders approved the proposal described in the Special Meeting Proxy. A total of 17,432,330 outstanding shares were entitled to vote at the meeting. The tabulation of votes was:

Proposal:  To authorize the Company to sell shares of its common stock, par value $0.02 per share, at a price below the then current net asset value per share of such common stock in one or multiple offerings, subject to certain limitations described in the proxy statement pertaining thereto (including that the number of shares sold on any given date does not exceed 20% of its outstanding common stock immediately prior to such sale):

ALL VOTES:

   
Votes For   Votes Against   Abstentions
8,237,460
    1,323,322       200,561  

VOTES BY NON-AFFILIATED PERSONS:

   
Votes For   Votes Against   Abstentions
6,913,900
    1,323,322       200,561  

Third Quarter 2017 Dividend

On August 21, 2017, the Company announced that its Board declared a third quarter 2017 cash dividend of $0.44 per share, payable on September 29, 2017 to shareholders of record as of September 22, 2017. In addition, the Company increased its 2017 annual cash dividend forecast by $0.07 per share, to $1.64 per share, which represents an approximate 4.5% increase over the Company’s previous 2017 annual dividend forecast of $1.57 per share.

91


 
 

TABLE OF CONTENTS

SENIOR SECURITIES

Information about our senior securities is shown in the following tables as of the end of each fiscal year for the past ten years and as of June 30, 2017. The information as of December 31, 2016, 2015, 2014, 2013, 2012, 2011, 2010 and 2009 has been derived from Newtek Business Services Corp. and Subsidiaries’, and Newtek Business Services, Inc. and Subsidiaries’, consolidated financial statements, which have been audited by independent registered public accounting firms. RSM US LLP’s report on the senior securities table as of December 31, 2016, 2015, 2014, and 2013 is attached as an exhibit to the registration statement of which this prospectus is a part. Information as of December 31, 2012, 2011, 2010, and 2009 was audited by our previous independent registered public accounting firm.

       
Year   Total Amount
Outstanding
Exclusive of
Treasury Securities(1)
(in thousands)
  Asset Coverage
Ratio Per Unit(2)
  Involuntary
Liquidation
Preference Per Unit(3)
  Average Market
Value Per Unit(4)
Securitization Trust
                                   
2017 (as of June 30, 2017)   $ 103,487     $ 4,427             N/A  
2016     120,945       3,184             N/A  
2015     91,745       3,692             N/A  
2014     79,520       3,634             N/A  
2013     60,140       2,966             N/A  
2012     22,039       5,933             N/A  
2011     26,368       3,758             N/A  
2010     15,104       5,538             N/A  
2009                       N/A  
2008                       N/A  
2007                       N/A  
2006                       N/A  
Bank Notes Payable
                                   
2017 (as of June 30, 2017)   $ 40,045     $ 11,439             N/A  
2016     5,100       75,512             N/A  
2015     29,100       11,641             N/A  
2014     43,023       6,716             N/A  
2013     41,218       4,327             N/A  
2012     39,823       3,284             N/A  
2011     13,565       7,305             N/A  
2010     12,949       6,460             N/A  
2009     16,298       4,315             N/A  
2008     25,998       3,157             N/A  
2007     22,065       4,920             N/A  
2006     16,391       7,229             N/A  
Notes Payable Related Parties
                                   
2017 (as of June 30, 2017)   $ 15,741     $ 29,102             N/A  
2016     1,400       275,081             N/A  
2015     5,647       59,990             N/A  
2014                       N/A  
2013                       N/A  
2012                       N/A  
2011                       N/A  
2010                       N/A  
2009                       N/A  

92


 
 

TABLE OF CONTENTS

       
Year   Total Amount
Outstanding
Exclusive of
Treasury Securities(1)
(in thousands)
  Asset Coverage
Ratio Per Unit(2)
  Involuntary
Liquidation
Preference Per Unit(3)
  Average Market
Value Per Unit(4)
2008                       N/A  
2007                       N/A  
2006                       N/A  
Notes due 2022
                                   
2017 (as of June 30, 2017)   $ 8,324     $ 55,033           $ 1,043  
2016     8,324       46,265             969  
2015     8,324       40,697             1,025  
2014                       N/A  
2013                       N/A  
2012                       N/A  
2011                       N/A  
2010                       N/A  
2009                       N/A  
2008                       N/A  
2007                       N/A  
2006                       N/A  
Notes due 2021
                                   
2017 (as of June 30, 2017)   $ 40,250     $ 11,381           $ 998  
2016     40,250       9,568             972  
2015                       N/A  
2014                       N/A  
2013                       N/A  
2012                       N/A  
2011                       N/A  
2010                       N/A  
2009                       N/A  
2008                       N/A  
2007                       N/A  
2006                       N/A  
Notes Payable Other
                                   
2017 (as of June 30, 2017)   $     $             N/A  
2016                       N/A  
2015                       N/A  
2014                       N/A  
2013                       N/A  
2012                       N/A  
2011                       N/A  
2010                       N/A  
2009                       N/A  
2008                       N/A  
2007                       N/A  
2006     1,000       118,498             N/A  

93


 
 

TABLE OF CONTENTS

       
Year   Total Amount
Outstanding
Exclusive of
Treasury Securities(1)
(in thousands)
  Asset Coverage
Ratio Per Unit(2)
  Involuntary
Liquidation
Preference Per Unit(3)
  Average Market
Value Per Unit(4)
Notes Payable Insurance
                                   
2017 (as of June 30, 2017)   $     $             N/A  
2016                       N/A  
2015                       N/A  
2014                       N/A  
2013                       N/A  
2012                       N/A  
2011                       N/A  
2010                       N/A  
2009                       N/A  
2008                       N/A  
2007     732       148,306             N/A  
2006     5,519       21,471             N/A  
Notes Payable Certified Investors
                                   
2017 (as of June 30, 2017)   $     $             N/A  
2016                       N/A  
2015                       N/A  
2014                       N/A  
2013                       N/A  
2012                       N/A  
2011                       N/A  
2010                       N/A  
2009                       N/A  
2008                       N/A  
2007     3,968       27,359             N/A  
2006     3,923       30,206             N/A  

(1) Total amount of each class of senior securities outstanding at the end of the period presented.
(2) Asset coverage per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.
(3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.
(4) Not applicable for senior securities that are not registered for public trading. The average market values per unit for our Notes due 2022 and for our Notes due 2021 are based on the average daily prices of such notes and are expressed per $1,000 of indebtedness.
(5) The Company had no unfunded commitments as of June 30, 2017, and our asset coverage ratio was 223%.

94


 
 

TABLE OF CONTENTS

BUSINESS
 
Newtek Business Services Corp.

We are an internally managed non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. We have also elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code, as amended (the “Code”) for U.S. federal income tax purposes, beginning with our 2015 tax year. We were formed to continue and expand the business of Newtek Business Services, Inc. We expect that our investments will typically be similar to the investments we made prior to our reincorporation.

As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our business finance platform and our equity investments in certain portfolio companies that we control.

Our Business

We are an internally managed BDC that is a leading national non-bank lender that provides, together with our controlled portfolio companies, a wide range of business services and financial products under the Newtek® brand to the small- and medium-sized business (“SMB”) market. Newtek’s products and services include: Business Lending including U.S. Small Business Administration (“SBA”) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), eCommerce, Accounts Receivable and Inventory Financing, The Secure Gateway, The Newtek Advantage®, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts nationwide across all industries. We have an established 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 state in the U.S. and across a variety of different industries. In addition, we have developed a financial and technology based business model that enables us and our controlled portfolio companies to acquire and process our SMB clients 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 but we believe is better than the system popularized by Salesforce.com. We believe that this technology and low cost business model distinguishes us from our competitors.

We focus on serving the SMB market, which we estimate to be over 27 million businesses in the U.S. We believe that these businesses have historically been underserved by traditional financial institutions and typically lack the capital resources to build a competitive business and marketing infrastructure on their own. Further, in today’s economic climate, we believe SMBs have particular difficulty obtaining capital from traditional lending sources. While we do not compete directly with alternative online lenders such as The Lending Club, Prosper.com, OnDeck Capital, Inc. and Kabbage Inc., we do provide financing solutions as an alternative to traditional lending. We believe there is significant demand for such alternative financing among SMBs. Our lending solutions and our controlled portfolio companies’ outsourced business solutions help clients manage and grow their businesses and compete effectively in today’s marketplace. We obtain our customers through referrals from various business partners, such as banks, insurance companies, credit unions and other affinity groups, as well as through our own direct sales force and advertising campaigns. We source, acquire and process SMB customers in a cost effective manner without reliance on high cost sales staff and time consuming application processes.

In lending, we believe we are a leading capital provider to SMBs based on our loan volume. We originate loans through a variety of sourcing channels and, through a disciplined underwriting process, seek to achieve attractive risk-weighted returns. Our multi-faceted relationships with certain borrowers allow us to closely monitor their credit profile and take an active role in managing our investment. Further, our lending capabilities coupled with the broad outsourced business solutions of our controlled portfolio companies create attractive cross-selling opportunities within our client base. We believe our business model creates powerful network effects which will help drive growth and operating leverage in our business. In addition, our SBA loans are structured so that the government guaranteed portion can be rapidly sold, which, based on our historic ability to securitize the unguaranteed portions and assuming the continuation of current market conditions, allows us to quickly recover our principal and earn excess capital on each loan, usually in less than a year. We may in the future determine to retain the government guaranteed or unguaranteed portions of

95


 
 

TABLE OF CONTENTS

loans pending deployment of excess capital. From 2012 through June 30, 2017, we have consistently been the largest non-bank SBA 7(a) lender and currently are the eighth largest SBA 7(a) lender in the U.S. based on dollar lending volume.

Our proprietary and patented technology platform, The Newtek Advantage®, which we make available to our controlled portfolio companies enables them to provide clients with a real-time management solution that organizes all of a business’ critical transaction and economic, eCommerce and website traffic data on a smartphone, tablet, laptop or personal computer. This technology provides critical consumer and marketing intelligence, including data mining, and provides a range of differentiated solutions and analytical tools that may be easily customized and integrated within their clients’ existing business processes. It also provides clients with seamless connectivity to a payment and managed technology infrastructure that is secure, fully compliant and regularly updated with the latest capabilities, services and functionalities. The platform is scalable to facilitate growth and meet the needs of new clients and consists solely of cloud-based offerings.

Newtek and its controlled portfolio companies all use NewTracker®, our patented and proprietary technology for receiving, processing and monitoring prospective customers. This enables Newtek and its portfolio companies to acquire SMB customers in a cost effective manner as it is all accomplished by skilled staff using state of the art technology without the need for high cost sales staff or applications processors. It also permits our referral partners to have a real time window into the back office processing of their referrals given. The software automatically pre-populates any necessary forms or applications so the processing is efficient and also cost effective. Finally, it also identifies opportunities for the cross-sale of other Newtek branded products or services.

Organizational Overview

On November 12, 2014, our predecessor, Newtek Business Services, Inc. (“Newtek NY”), merged with and into Newtek Business Services Corp. for the purpose of reincorporating the Company in the state of Maryland. Newtek Business Services Corp. had previously elected to be regulated as a BDC under the 1940 Act on October 1, 2013 (the “BDC Conversion”). In addition, on October 22, 2014, we effectuated a 1 for 5 reverse stock split (the “Reverse Stock Split”) to attract institutional investors. As a result of the BDC Conversion, Newtek NY ceased to exist and the Company succeeded to Newtek NY’s operations as the sole surviving entity.

The Company is a Maryland corporation that is an internally managed, non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. As a BDC, we are required to meet regulatory tests, including the requirement to invest at least 70% of our gross assets in “qualifying assets.” Qualifying assets generally include securities of private or thinly traded U.S. companies and cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. See “Regulation” in this prospectus. In addition, we have elected to be treated for U.S. federal income tax purposes, and intend to qualify annually thereafter, as a RIC under the Code. See “Material U.S. Federal Income Tax Considerations” in this prospectus.

96


 
 

TABLE OF CONTENTS

Set forth below is a diagram of our current organizational structure:

[GRAPHIC MISSING]

(1) Consolidated subsidiary that is part of the Company’s business finance platform, and operates as a nationally licensed SBA lender under the federal Section 7(a) program with preferred lender program status.
(2) Consists of indirect and direct SBA 7(a) Loans to small businesses.
(3) Wholly-owned portfolio company that is part of the Company’s business finance platform. Provides receivables and inventory financing, management services, and managerial assistance to SMBs and originates loans under the SBA 504 loan program.
(4) Wholly-owned portfolio company that markets credit and debit card processing services, check approval services, processing equipment, and software.
(5) Wholly-owned 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 services.
(6) Wholly-owned portfolio company that is part of the Company’s business finance platform. Provides third-party loan services for SBA and non-SBA loans.
(7) Wholly-owned portfolio company that markets credit and debit card processing services, check approval services, processing equipment, and software.
(8) Includes: (i) NIA, a wholly-owned portfolio company which is a retail and wholesale brokerage insurance agency specializing in the sale of commercial and health/benefits lines insurance products to the SMB market as well as various personal lines of insurance. It is licensed in all 50 states; (ii) NPS, a wholly-owned portfolio company which offers an array of industry standard and competitively priced payroll management, payment and tax reporting services to SMBs; (iii) BSP, a wholly-owned portfolio company, provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing; and (iv) IPM, a wholly-owned portfolio company which consults, strategizes, designs, and implements technology solutions for enterprise and commercial clients across the U.S.

Business Finance Platform

Our portfolio consists of guaranteed and unguaranteed non-affiliate loan investments that were made through our business finance platform, comprised of Newtek Small Business Finance, LLC (“NSBF”), a nationally licensed SBA lender. NSBF originates, sells and services SBA 7(a) loans made to qualifying SMBs, which are partially guaranteed by the SBA. The business finance platform also includes CDS Business Services, Inc. d/b/a Newtek Business Credit Solutions (“NBC”), a controlled portfolio company, which provides receivables financing, inventory financing and health care receivables financing, and management services to SMBs, which may obtain $10,000 to $2,000,000 per month through the sale of their trade receivables. In addition, NBC funds SBA 504 loans which provide financing of fixed assets such as real estate or equipment. Small Business Lending, LLC d/b/a Newtek Small Business Lending (“SBL”), a wholly owned portfolio company, engages in third party loan servicing for SBA and non-SBA loans. An additional wholly owned portfolio company, ADR Partners d/b/a banc-serv Partners, LLC (“BSP”), provides lending institutions

97


 
 

TABLE OF CONTENTS

with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing.

We intend to continue to expand our business finance platform primarily by expanding senior secured lending through NSBF. NSBF is one of 14 SBA licensed Small Business Lending Companies that provide loans nationwide under the SBA 7(a) loan program. NSBF has received Preferred Lenders Program (“PLP”) status, a designation whereby the SBA authorizes SBA lenders, based on their record with the SBA and proficiency in processing and servicing SBA-guaranteed loans, to place SBA guarantees on loans without seeking prior SBA review and approval. PLP status allows NSBF to serve its clients in an expedited manner since it is not required to present applications to the SBA for concurrent review and approval. We believe NSBF’s SBA license, combined with NSBF’s PLP designation, provides us with a distinct competitive advantage over other SMB lenders that have not overcome these significant barriers-to-entry in our primary loan market. NSBF originated approximately $242,496,000 of SBA 7(a) loans during 2015 and approximately $309,147,000 during 2016. We believe that we will continue to be introduced to a variety of high-quality investment opportunities through our existing loan sourcing channels and our controlled portfolio companies’ relationships with their clients, and our status as a BDC which helps fuel the growth of our loan portfolio by providing us with better access to lower-cost capital.

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. Under the SBA’s 7(a) lending program, a bank or other lender such as NSBF underwrites a loan between $50,000 and $5,000,000 for a variety of general business purposes based on the SBA’s guidelines and the SBA provides a partial guarantee on the loan. Depending on the loan size, the SBA typically guarantees between 75% and 90% of the principal and interest due. The recoveries and expenses on the unguaranteed portions of these loans are shared pari passu between the SBA and the lender, which substantially reduces the loss severity on the unguaranteed portion of a loan for SBA 7(a) loan investors. SBA 7(a) loans are typically between five and 25 years in maturity, four to five years in duration and bear interest at the prime rate plus a spread from 2.25% to 2.75%. Since the guaranteed portions of SBA 7(a) loans carry the full faith and credit of the U.S. government, lenders may, and frequently do, sell the guaranteed portion of SBA 7(a) loans in the capital markets, hold the unguaranteed portion and retain all loan servicing rights.

NSBF has a dedicated capital markets team that sells the guaranteed portions of its SBA 7(a) loans and sells or securitizes the unguaranteed portions of its SBA 7(a) loans. Historically, NSBF has sold the guaranteed portions of its originated SBA 7(a) loans shortly after origination and retained the unguaranteed portions until accumulating sufficient loans for a securitization. Since inception, NSBF has sold SBA guaranteed portions of SBA 7(a) loans at premiums ranging from 106% to 120% of par value and typically any portion of the premium that was above 110% of par value was shared equally between NSBF and the SBA. Since December 2010, NSBF has maintained its securitization program for unguaranteed portions of its SBA 7(a) loans and has successfully completed seven securitization transactions with Standard & Poor’s AA or A ratings and attractive advance rates of approximately 70% of par value. NSBF intends to complete additional securitizations in the future which may be on comparable although not necessarily identical terms and conditions. We may determine to retain the government guaranteed or unguaranteed portions of loans, pending deployment of excess capital.

98


 
 

TABLE OF CONTENTS

NSBF’s senior lending team has focused on making smaller loans, approximately $1,000,000 or less, in order to maintain a diversified pool of loans that are dispersed both geographically and among industries, which limits NSBF’s exposure to regional and industry-specific economic downturns. Specifically, as of June 30, 2017, NSBF’s loan portfolio consisted of 1,373 loans originated across 49 states in 78 different industries as defined by the North American Industry Classification System (“NAICS”). The following charts summarize NSBF’s mix of investment concentrations by industry and geography as of June 30, 2017 (in thousands):

Distribution by NAICS Code Description

       
NAICS Code Description   Number of
Loans
  Aggregate
Balance
($)
  Average
Balance
($)
  Percentage
of Balance
Food Services and Drinking Places     173     $ 23,025     $ 133       9.3 % 
Amusement, Gambling, and Recreation Industries     72       18,370       255       7.5 % 
Professional, Scientific, and Technical Services     81       14,278       176       5.9 % 
Ambulatory Health Care Services     75       14,173       189       5.7 % 
Repair and Maintenance     77       12,844       167       5.2 % 
Truck Transportation     42       11,172       266       4.5 % 
Food Manufacturing     16       9,458       591       3.8 % 
Accommodation     42       9,221       220       3.7 % 
Specialty Trade Contractors     61       8,936       146       3.6 % 
Merchant Wholesalers, Durable Goods     33       6,833       207       2.8 % 
Other     701       118,418       169       48.0 % 
Total     1,373     $ 246,728     $ 180       100.0 % 

Distribution by State

       
State   Number of
Loans
  Aggregate
Balance
($)
  Average
Balance
($)
  Percentage
of Balance
Florida     167     $ 32,087     $ 192       13.0 % 
New York     162       27,068       167       11.0 % 
Connecticut     91       15,699       173       6.4 % 
Texas     75       15,076       201       6.1 % 
California     95       14,488       153       5.8 % 
Pennsylvania     65       14,445       222       5.9 % 
Georgia     60       13,468       224       5.5 % 
New Jersey     83       12,665       153       5.1 % 
Illinois     40       9,847       246       4.0 % 
Ohio     39       9,053       232       3.7 % 
Other     496       82,832       167       33.5 % 
Total     1,373     $ 246,728     $ 180       100.0 % 

99


 
 

TABLE OF CONTENTS

NSBF evaluates the credit quality of its loan portfolio by employing a risk rating system that is similar to the Uniform Classification System, which is the asset classification system adopted by the Federal Financial Institution Examinations Council. NSBF’s risk rating system is granular with multiple risk ratings in both the Acceptable and Substandard categories. Assignment of the ratings are predicated upon numerous factors, including credit risk scores, collateral type, loan to value ratios, industry, financial health of the business, payment history, other internal metrics/analysis, and qualitative assessments. Risk ratings are refreshed as appropriate based upon considerations such as market conditions, loan characteristics, and portfolio trends. NSBF’s gross SBA loans by credit quality indicator are as follows:

Risk Rating

       
Portfolio   Number
of Loans
  Aggregate
Balance
($)
  Average
Balance
($)
  Percentage
of Balance
Risk Rating 1 – 4     1,285     $ 228,429     $ 178       92.6 % 
Risk Rating 5     9       970       108       0.4 % 
Risk Rating 6     74       16,396       222       6.6 % 
Risk Rating 6/7 and 7     5       933       187       0.4 % 
Total     1,373     $ 246,728     $ 180       100.0 % 

The weighted average term to maturity and weighted average interest rate of NSBF’s loan portfolio as of June 30, 2017 was 16.6 years and 6.69%, respectively.

Controlled Portfolio Companies

In addition to our debt investments in portfolio companies, either directly or through our small business finance platform, we also hold controlling interests in certain portfolio companies that, as of June 30, 2017, represented approximately 35% of our total investment portfolio. Specifically, we hold a controlling interest in SBL, NBC, BSP, Universal Processing Services of Wisconsin, LLC d/b/a Newtek Merchant Solutions (“NMS” or “UPSW”), Premier Payments LLC d/b/a Newtek Payment Solutions (“Premier”), Newtek Technology Solutions, Inc. d/b/a Newtek Technology Solutions (“NTS”), PMTWorks Payroll, LLC d/b/a Newtek Payroll and Benefits Solutions (“NPS”) and Newtek Insurance Agency, LLC (“NIA”). We refer to these entities (among others), collectively, as our “controlled portfolio companies.” Our controlled portfolio companies provide us with an extensive network of business relationships that supplement our referral sources and that we believe will help us to maintain a robust pipeline of lending opportunities and expand our business finance platform.

The revenues that our controlled portfolio companies generate, after deducting operational expenses, may be distributed to us. As a BDC, our board of directors (the “Board”) will determine quarterly the fair value of our controlled portfolio companies in a similar manner as our other investments. In particular, our investments in our controlled portfolio companies are valued using a valuation methodology that incorporates both the market approach (guideline public company method) and the income approach (discounted cash flow analysis). In following these approaches, factors that we may take into account in determining the fair value of our investments include, as relevant: available current market data, including relevant and applicable market trading comparables, the portfolio company’s earnings and discounted cash flows, comparisons of financial ratios of peer companies that are public, and enterprise values, among other factors. In addition, the Company has engaged third party valuation firms to provide valuation consulting services for the valuation of certain of our controlled portfolio companies.

Newtek Merchant Solutions and Newtek Payment Solutions

On July 23, 2015, we invested in 100% of the membership interests of Premier, one of the country’s leading electronic payment processing independent sales organizations, which powers billions of dollars of credit card and debit card transactions on an annual basis. We anticipate that this investment will continue to expand our controlled portfolio companies’ presence in the merchant processing space.

100


 
 

TABLE OF CONTENTS

Both NMS and Premier market credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other non-cash forms of payment. They utilize a multi-pronged sales approach of both direct and indirect sales. NMS and Premier’s primary sales efforts focus on direct sales through our Your Business Solutions Company® brand. Their indirect sales channels consist of alliance partners, principally financial institutions (banks, credit unions, insurance companies and other related businesses), and independent sales agents across the U.S. These referring organizations and associations are typically paid a percentage of the processing revenue derived from the respective merchants that they successfully refer to NMS and Premier. In 2016, NMS and Premier processed merchant transactions with sales volumes of over $5.8 billion combined.

NMS and Premier have a number of competitive advantages which we believe will enable them to exceed industry growth averages. These are:

They focus on non-traditional business generation: referral relationships, wholesale solicitations and financial institutions rather than independent agents;
They are a market leader in the implementation of technology in the payment processing business;
They license the rights, through one of our Capco investments (defined below), to a payment processing gateway;
They maintain their own staff of trained and skilled customer service representatives; and
They market and sell the latest in point-of-sale technology hardware, re implementing of the EMV system (Europay, MasterCard, Visa inter-operative integrated circuit cards) and continuous cyber-security services.

NMS and Premier maintain their principal customer service and sales support offices in Milwaukee, Wisconsin and Lake Success, New York, with additional specialists located in Phoenix, Arizona and Brownsville, Texas. NMS’ and Premier’s personnel at these locations assist merchants with initial installation of equipment and on-going service, as well as any other special processing needs that they may have.

NMS’ and Premier’s development and growth are focused on selling their services to internally generated referrals, merchant referrals identified by Newtek alliance partners and by independent sales representatives. We believe NMS and Premier are different than most electronic payment processing companies who acquire their clients primarily through independent agents. NMS and Premier believe that their business models provide them with a competitive advantage by enabling them to acquire new merchant customers at a lower cost level for third-party commissions than the industry average. NMS’ and Premier’s business models allows them to own the customer as well as the stream of residual payments, as opposed to models which rely more heavily on independent sales agents.

Newtek Technology Solutions

NTS offers website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, eCommerce, data storage and backup, and other related services to more than 99,000 customer accounts in 167 countries and manages over 70,000 domain names. While there are many competitors in this space, we believe that NTS is the only technology company with the exclusive focus on the SMB market with products tailored to the specific needs of these business customers.

NTS provides a full suite of outsourced IT infrastructure services, including cloud (virtual) server instances, shared server hosting, and dedicated server hosting, under the Newtek® Technology Solutions, Newtek® Technology Services, Newtek® Web Services, Newtek Web Hosting®, and CrystalTech® brands, for which it receives recurring monthly fees, as well as other fees such as set-up fees, consulting fees, and domain name registration fees, among others. Approximately 90% of all fees are paid in advance by credit card.

101


 
 

TABLE OF CONTENTS

NTS has recognized the continuing decline in Microsoft being utilized in the design of web sites and the market shift to Linux, Nginx and a proliferation of Word Press sites being built on non-Microsoft based platforms. This decline has caused a marked downward trend in the historical site count of NTS Microsoft hosted sites. NTS has responded by launching Linux Apache and Linux Nginx platforms within its environment and created associated control panels, service/support and billing to participate more fully in 100% of the market as compared to the present 33% of the new web design growth represented by Microsoft. All platforms are available within NTS’ cloud and non-cloud environment and are fully managed offerings as compared to NTS’ competitors. In addition, Newtek has created a patented proprietary platform, Newtek Advantage®, which leverages NTS’ underlying technologies to deliver real time information and actionable business intelligence to its existing and new customer base.

NTS has a complete line of cloud based business and eCommerce packages and Cloud Spaces to streamline the decision process for business owners and accommodate designers and developers that wish to build sites in both Microsoft and Linux environments. Included with this service offering is full customer service with a real human interface available on a 24/7/365 basis, which we believe further distinguishes NTS from its competitors who usually offer co-location hosting without the support needed for the SMB market customer.

NTS’ cloud offerings provide for a consumption-based hosting model that allows customers to pay only for the resources they need, which not only saves them money compared to traditional server hosting, but also enables them to scale larger or smaller on demand.

NTS currently operates five data centers in Scottsdale, Arizona, Phoenix, Arizona, Edison, New Jersey, Denver, Colorado and Slough, England.

NTS delivers services not just to customers seeking hosting, but also to wholesalers, resellers, and web developers by offering a range of tools for them to build, resell, and deliver their web content. Depending on the application environment, NTS uses various versions of Microsoft Windows Server 2008 R2 through Windows 2012 R2 as the primary operating system installed in a virtual machine server format. NTS is PCI certified, and Service Organization Control 1 (“SOC 1”) audited, all of which mean that it meets the highest industry standards for data security.

The datacenter facilities NTS employs to host it’s technologies conforms to The Uptime Institute’s 4-Tier Classification System which has become a global standard for 3rd-party validation of data center critical infrastructure. The Tier Classification System defines the requirements and benefits of four distinct Tier classifications for data center infrastructure. Each Tier sets the appropriate criteria for power, cooling, maintenance, and capability to withstand a fault. Tiers is progressive; each Tier incorporates the requirements of all the lower Tiers. NTS operates its critical infrastructure within facilities that have a minimum rating of Tier 3-Certified. NTS datacenters meet and exceed Uptime Institute Tier-3 standards in all categories which allows NTS to pursue and service, compliance-sensitive workloads from the financial services, healthcare, government and military sectors. In addition, NTS includes redundant, carrier-neutral network design for all its communications paths, multiple locations to host services, and a built in DDOS mitigation platform into the design of its datacenter services.

Throughout its affiliation with Newtek, over 70% of new NTS customers have come as a result of internal and external referrals without material expenditures by NTS for marketing or advertising. Many of NTS’ competitors are very price sensitive, offering minimal services at cut-rate pricing. While being cost competitive with most Linux-and Windows-based web hosting services, NTS has emphasized higher quality uptime, service and support as well as multiple control panel environments for the designer and developer community.

NTS has diversified its product offerings to SMBs under different brands, all under Newtek Technology Solutions, including Newtek Web Hosting,® Newtek Web Services, Newtek Data Storage® and Newtek Web Design and Development®. NTS focuses specifically on select markets such as restaurants, financial institutions, medical practices, law firms, accountants, retail and technology service providers for channel business and reselling.

102


 
 

TABLE OF CONTENTS

NTS has also launched a turnkey hosting service to meet financial institution needs for dedicated servers, hosting and/or data storage, enabling these entities to comply with their strict regulatory requirements that demand very high security protocols and practices be in place.

Newtek Insurance Agency

NIA, which is licensed in 50 states, offers SMB and personal lines insurance products and services. NIA serves as a retail and wholesale brokerage insurance agency specializing in the sale of personal, commercial and health/benefits lines insurance products to customers of all of the Newtek portfolio companies as well as Newtek alliance partners. NIA offers insurance products from multiple insurance carriers providing a wide range of choice for its customers. NIA has formed strategic alliances with AIG, E-Insure, Credit Union National Association, Navy Federal Credit Union, the Commercial Transportation Association of America, Pershing and others to provide agent services to SMB clients referred by them. NIA is continuing its efforts to implement programs with alliance partners to market commercial and personal insurance. In December 2012, NIA, working with another Newtek subsidiary, acquired a portfolio of insurance business from a health care insurance agency based in the New York City area. This added approximately 340 group health insurance policies that NIA is servicing and forms the basis on which NIA is growing this aspect of the insurance business. We also expect that recent health care legislation will increase the demand for these services among SMBs. A major sales channel for NIA is the SMB customer base of our lending platform and the other controlled portfolio companies which allow for many opportunities for cross sales between business lines.

Newtek Payroll and Benefits Solutions

NPS offers an array of industry standard and very competitively priced payroll management, benefit, payment and tax reporting services to SMBs. These payroll and benefit solutions are marketed through all of Newtek’s available channels including the alliance partnerships and direct marketing campaigns. NPS also benefits by the access to the SMB customer base of the lending platform and the other controlled portfolio companies.

NPS provides full service payroll and benefit solutions across all industries, processing payroll via SaaS or phone solutions. They have an established and reliable platform that is not limited by client size, industry type or delivery interface. NPS assists clients in managing their payroll processing needs by calculating, collecting and disbursing their payroll funds, remitting payroll taxes and preparing and filing all associated tax returns. In addition, NPS offers clients a range of ancillary service offerings, including workers’ compensation insurance, time and attendance, 401(k) administration, pay cards, employee benefit plans, employee background screening, COBRA services, tax credit recovery, Section 125 and flexible benefits spending plans and expense management services.

Certified Capital Companies (Capcos)

Under state-created Capco programs, states provide a Capco with tax credits generally equal to the amount of funds the Capco raises from insurance company investors. The Capcos then issue the tax credits to its investors — a process which is designed to reduce the Capco’s investors’ state tax liabilities. In exchange for receiving the tax credits, the Capco is obligated to invest the funds raised in certain qualified business, which generally are defined by statute to include only business that meet certain criteria related to the size, location, number of employees, and other characteristics of the business. If a Capco fails to comply with the performance requirements of each state’s different Capco program, the tax credits are subject to forfeiture.

Under state law, a Capco that has invested in qualified businesses an amount equal to 100% of its initial certified capital is able to decertify (i.e., terminate its status as a Capco) and no longer be subject to any state Capco regulation. Upon voluntary decertification, the programs in about half of the states require that a Capco share any distributions to its equity holders with the state sponsoring the Capco. For those states that require a share of distributions, the sharing percentages vary, but are generally from 10% to 30%, usually on distributions above a specified internal rate of return for the equity owners of the Capco.

Based on the above and that the Capcos were formed to make investments in businesses, the entities were determined to be investment companies and are therefore consolidated subsidiaries of Newtek.

103


 
 

TABLE OF CONTENTS

Our Capcos have historically invested in SMBs and, in addition to interest income and investment returns, have generated non-cash income from tax credits and non-cash interest and insurance expenses in addition to cash management fees and expenses. We have de-emphasized our Capco business in favor of growing our controlled portfolio companies and do not anticipate creating any new Capcos. While observing all requirements of the Capco programs and, in particular, financing qualified businesses meeting applicable state requirements as to limitations on the proportion of ownership of qualified businesses, we believe the growth of our controlled portfolio companies produces a strategic focus on providing goods and services to SMBs such as those in which our Capcos invest. We continue to invest in and lend to SMBs through our existing Capcos and intend to meet the goals of the Capco programs.

As the Capcos reach 100% investment we will seek to decertify them as Capcos, liquidate their remaining assets and thereby reduce their operational costs, particularly the legal and accounting costs associated with compliance. Eight of our original sixteen Capcos have reached this stage.

Newtek Branding

We have developed our branded line of products and services to offer a full service suite of business and financial solutions for the U.S. SMB market. Newtek reaches potential customers through its integrated multi-channel approach featuring direct, indirect and direct outbound solicitation efforts. Although we continue to utilize and grow our primary marketing channel of strategic alliance partners, more recently, and consistent with our BDC Conversion, we have initiated a direct marketing strategy to SMB customers through our new “go to market” brand, Your Business Solutions Company®. Through a coordinated radio and television advertising campaign built around this brand, and our web presence, www.newtekone.com, we believe we are establishing ourselves as a preferred “go-to” provider for SMB financing and the services offered by our controlled portfolio companies. In addition, we supplement these efforts with extensive efforts to present the Company as the authority on small businesses.

We market services through referrals from our strategic alliance partners such as AIG, Amalgamated Bank, Credit Union National Association, E-Insure, ENT Federal Credit Union, The Hartford, Legacy Bank, Morgan Stanley Smith Barney, Navy Federal Credit Union, New York Community Bank, Lending Tree, LLC, Randolph Brooks Federal Credit Union, UBS Bank, Meineke Dealers Purchasing Cooperative and True Value Company, among others, (using our patented NewTracker® referral management system) as well as direct referrals from our web presence, www.newtekone.com. Our NewTracker® referral system has a software application patent covering the systems and methods for tracking, reporting and performing processing activities and transactions in association with referral data and related information for a variety of product and service offerings in a business-to-business environment. The NewTracker® system provides for security and transparency between referring parties and has been material in our ability to obtain referrals from a wide variety of sources. This patented system allows us and our alliance partners to review in real time the status of any referral as well as to provide real time compliance oversight by the respective alliance partner, which we believe creates confidence among the referred business client, the referring alliance partner and us. We own the NewTracker® patent, as well as all trademarks and other patented intellectual property used by us and our controlled portfolio companies.

Additional referrals are obtained from individual professionals in geographic markets that have signed up to provide referrals and earn commissions through our BizExec and TechExec Programs. Our BizExecs and TechExecs are traditionally information technology professionals, CPAs, independent insurance agents and sales and/or marketing professionals. In addition, electronic payment processing services are marketed through independent sales agents, and web technology and eCommerce services are marketed through internet-based marketing and third-party resellers. A common thread across all business lines of our controlled portfolio companies relates to acquiring customers at low cost and making strategic alliances primarily where we pay fees only for successful referrals. We seek to bundle our marketing efforts through our brand, our portal, our patented NewTracker® referral system, our web presence as Your Business Solutions Company® and one easy entry point of contact. We expect that this approach will allow us to continue to cross-sell the financing services of our business finance platform to customers of our controlled portfolio companies and build upon our extensive deal sourcing infrastructure. The compensation which we pay for referrals is consistent with industry practices.

104


 
 

TABLE OF CONTENTS

Senior Lending Team and Executive Committee

The key members of our Senior Lending Team, most of which have worked together for more than ten years each have over 25 years of experience in finance-related fields. These investment professionals have worked together to screen opportunities, underwrite new investments and manage a portfolio of investments in SMBs through two recessions, a credit crunch, the dot-com boom and bust and a historic, leverage-fueled asset valuation bubble. Each member brings a complementary component to a team well-rounded in finance, accounting, operations, strategy, business law and executive management.

Because we are internally managed by our Executive Committee, which includes Barry Sloane, Peter Downs, Jennifer C. Eddelson, Michael A. Schwartz, and John Raven, under the supervision of our Board, and do not depend on a third party investment advisor, we do not pay investment advisory fees and all of our income is available to pay our operating costs and to make distributions to our shareholders. While our portfolio companies are independently managed, our Executive Committee also oversees our controlled portfolio companies and, to the extent that we may make additional equity investments in the future, the Executive Committee will also have primary responsibility for the identification, screening, review and completion of such investments. We do not expect to focus our resources on investing in additional stand-alone equity investments, but may elect to do so from time to time on an opportunistic basis, if such opportunities arise. Messrs. Sloane and Downs have been involved together in the structuring and management of equity investments for the past fourteen years.

Market Opportunity

We believe that the limited amount of capital and financial products available to SMBs, coupled with the desire of these companies for flexible and partnership-oriented sources of capital and other financial products, creates an attractive investment environment for us to further expand our business finance platform and overall brand. We believe the following factors will continue to provide us with opportunities to grow and deliver attractive returns to shareholders.

The SMB market represents a large, underserved market.  We estimate the SMB market to include over 27 million businesses in the U.S. We believe that SMBs, most of which are privately-held, are relatively underserved by traditional capital providers such as commercial banks, finance companies, hedge funds and collateralized loan obligation funds. Further, we believe that such companies generally possess conservative capital structures with significant enterprise value cushions, as compared to larger companies with more financing options. While the largest originators of SBA 7(a) loans have traditionally been regional and national banks, from 2012 through June 30, 2017, NSBF was the largest non-bank originator of SBA 7(a) loans by dollar volume and is currently the eighth largest SBA 7(a) lender in the U.S. As a result, we believe we and our controlled portfolio companies are well positioned to provide financing to the types of SMBs that we have historically targeted and we have the technology and infrastructure in place presently to do it cost effectively in all 50 states and across many industries.

Future refinancing activity is expected to create additional investment opportunities.  A high volume of financings completed between 2005 and 2008 will mature in the coming years. We believe this supply of opportunities coupled with limited financing providers focused on SMBs will continue to offer investment opportunities with attractive risk-weighted returns.

The increased capital requirements and other regulations placed on banks may reduce lending by traditional large financial institutions and community banks.  While many SMBs were previously able to raise debt financing through traditional large financial institutions, we believe this approach to financing will continue to be constrained for several years as continued implementation of U.S. and international financial reforms, such as Basel III, phase in and rules and regulations are promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act. We believe that these regulations will increase capital requirements and have the effect of further limiting the capacity of traditional financial institutions to hold non-investment grade loans on their balance sheets. As a result, we believe that many of these financial institutions have de-emphasized their service and product offerings to SMBs, which we believe will make a higher volume of deal flow available to us.

105


 
 

TABLE OF CONTENTS

Increased demand for comprehensive, business-critical SMB solutions.  Increased competition and rapid technological innovation are creating an increasingly competitive business environment that requires SMBs to fundamentally change the way they manage critical business processes. This environment is characterized by greater focus on increased quality, lower costs, faster turnaround and heightened regulatory scrutiny. To make necessary changes and adequately address these needs, we believe that companies are focusing on their core competencies and utilizing cost-effective outsourced solutions to improve productivity, lower costs and manage operations more efficiently. Our controlled portfolio companies provide critical business solutions such as electronic payment processing, managed IT solutions, personal and commercial insurance services and full-service payroll and benefit solutions, receivables financing and funding of SBA 504 loans which provide financing of fixed assets such as real estate or equipment. We believe that each of these market segments are underserved for SMBs and since we are able to provide comprehensive solutions under one platform, we are well positioned to continue to realize growth from these product offerings.

Competitive Advantages

We believe that we are well positioned to take advantage of investment opportunities in SMBs due to the following competitive advantages:

Internally Managed Structure and Significant Management Resources.  We are internally managed by our executive officers under the supervision of our Board and do not depend on an external investment advisor. As a result, we do not pay investment advisory fees and all of our income is available to pay our operating costs, which include employing investment and portfolio management professionals, and to make distributions to our shareholders. We believe that our internally managed structure provides us with a lower cost operating expense structure, when compared to other publicly traded and privately-held investment firms which are externally managed, and allows us the opportunity to leverage our non-interest operating expenses as we grow our investment portfolio. Our senior lending team has developed one of the largest independent loan origination and servicing platforms that focuses exclusively on SMBs.

Business Model Enables Attractive Risk-Weighted Return on Investment in SBA Lending.  Our loans are structured so as to permit rapid sale of the U.S. government guaranteed portions, often within weeks of origination, and the unguaranteed portions have been successfully securitized and sold, usually within a year of origination. The return of principal and premium may result in an advantageous risk-weighted return on our original investment in each loan. We may determine to retain the government guaranteed or unguaranteed portions of loans pending deployment of excess capital.

State of the Art Technology.  Our patented NewTracker® software enables us to board a SMB customer, process the application or inquiry, assemble necessary documents, complete the transaction and create a daily reporting system that is sufficiently unique as to receive a U.S. patent. This system enables us to identify a transaction, similar to a merchandise barcode or the customer management system used by SalesForce.com, then process a business transaction and generate internal reports used by management and external reports for strategic referral partners. It allows our referral partners to have digital access into our back office and follow on a real time, 24/7 basis the processing of their referred customers. This technology has been made applicable to all of the service and product offerings we make directly or through our controlled portfolio companies.

Established Direct Origination Platform with Extensive Deal Sourcing Infrastructure.  We have established a direct origination pipeline for investment opportunities without the necessity for investment banks or brokers as well as broad marketing channels that allow for highly selective underwriting. The combination of our brand, our portal, our patented NewTracker® technology, and our web presence as Your Business Solutions Company® have created an extensive deal sourcing infrastructure. Although we pay fees for loan originations that are referred to us by our alliance partners, our investment team works directly with the borrower to assemble and underwrite loans. We rarely invest in pre-assembled loans that are sold by investment banks or brokers. As a result, we believe that our unique national origination platform allows us to originate attractive credits at a low cost. During 2016 we funded $309,146,000 of SBA 7(a) loans, based on the large volume of loan proposals we received in 2016. We anticipate that our principal source of investment opportunities will continue to be in the same types of SMBs to which we currently provide financing. Our Executive Committee and Senior Lending Team will also seek to leverage their extensive network of

106


 
 

TABLE OF CONTENTS

additional referral sources, including law firms, accounting firms, financial, operational and strategic consultants and financial institutions, with whom we have completed investments. We believe our current infrastructure and expansive relationships will continue to enable us to review a significant amount of high quality, direct (or non-brokered) investment opportunities.

Experienced Senior Lending Team with Proven Track Record.  We believe that our Senior Lending Team is one of the leading capital providers to SMBs. Our Senior Lending Team has expertise in managing the SBA process and has managed a diverse portfolio of investments with a broad geographic and industry mix. While the primary focus of NSBF is to expand its debt financing activities in SBA 7(a) loans, our Executive Committee also has substantial experience in making debt and equity investments through our Capcos.

Flexible, Customized Financing Solutions for Seasoned, Smaller Businesses.  While NSBF’s primary focus is to expand its lending by activities by providing SBA 7(a) loans to SMBs, we also seek to offer SMBs a variety of attractive financing structures, as well as cost effective and efficient business services, to meet their capital needs through our subsidiaries and controlled portfolio companies. In particular, through our subsidiaries and controlled portfolio companies, we offer larger loans, between $5,000,000 and $10,000,000, greater than loans available with the SBA guarantee, but with a higher interest rate to compensate for the increased risk. Unlike many of our competitors, we believe we have the platform to provide a complete package of service and financing options for SMBs, which allows for cross-selling opportunities and improved client retention. We expect that a large portion of our capital will be loaned to companies that need growth capital, acquisition financing or funding to recapitalize or refinance existing debt facilities. Our lending will continue to focus on making loans to SMBs that:

have 3 to 10 years of operational history;
significant experience in management;
credit worthy owners who provide a personal guarantee for our investment;
show a strong balance sheet to collateralize our investments; and
show sufficient cash flow to be able to service the payments on our investments comfortably.

Although we may make investments in start-up businesses, we generally seek to avoid investing in high-risk, early-stage enterprises that are only beginning to develop their market share or build their management and operational infrastructure with limited collateral.

Disciplined Underwriting Policies and Rigorous Portfolio Management.  We pursue rigorous due diligence of all prospective investments originated through our platform. Our senior lending team has developed an extensive underwriting due diligence process, which includes a review of the operational, financial, legal and industry performance and outlook for the prospective investment, including quantitative and qualitative stress tests, review of industry data and consultation with outside experts regarding the creditworthiness of the borrower. These processes continue during the portfolio monitoring process, when we will conduct field examinations, review all compliance certificates and covenants and regularly assess the financial and business conditions and prospects of portfolio companies. In addition, SBL and BSP are servicers for commercial, SBA 7(a) and other government guaranteed whose exceptional servicing capabilities with compact timelines for loan resolutions and dispositions has attracted various third-party portfolios to these controlled portfolio companies.

Business Development Company Conversion

On October 22, 2014, we effectuated the Reverse Stock Split. In conjunction with the completion of a public offering, we merged with and into Newtek Business Services Corp., a newly-formed Maryland corporation, for the purpose of reincorporating in Maryland and we elected to be regulated as a BDC under the 1940 Act in the BDC Conversion. In connection with our election of RIC status beginning with our 2015 tax year, on October 1, 2015 our Board declared a special dividend of $2.69 per share which was paid partially in cash and partially in our common shares on December 31, 2015.

107


 
 

TABLE OF CONTENTS

As a BDC, we are required to meet regulatory tests, including the requirement to invest at least 70% of our gross assets in “qualifying assets.” Qualifying assets generally include debt or equity securities of private or thinly traded public U.S. companies and cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, as a BDC, we are not be permitted to incur indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our total assets). See “Regulation.”

In connection with our election to be regulated as a BDC, we elected to be treated for U.S. federal income tax purposes, beginning with our 2015 tax year, and intend to qualify annually thereafter, as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to pay corporate-level federal income taxes on any ordinary income or capital gains that we distribute to our shareholders. To obtain and maintain our RIC tax treatment, we must meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any.

Investments

We engage in various investment strategies from time to time in order to achieve our overall investment objectives.

Portfolio Company Characteristics

We have and will continue to target investments in future portfolio companies that generate both current income and capital appreciation. In each case, the following criteria and guidelines are applied to the review of a potential investment however, not all criteria are met in every single investment, nor do we guarantee that all criteria will be met in the investments we will make in the future. We have and will continue to limit our investments to the SMB market.

Experienced Senior Investment Teams with Meaningful Investment.  We seek to invest in companies in which senior or key managers have significant company-or industry-level experience and have significant equity ownership. It has been our experience that these senior investment teams are more committed to the portfolio company’s success and more likely to manage the company in a manner that protects our debt and equity investments.

Significant Invested Capital.  We believe that the existence of an appropriate amount of equity beneath our debt capital provides valuable support for our investment. In addition, the degree to which the particular investment is a meaningful one for the portfolio company’s owners (and their ability and willingness to invest additional equity capital as and to the extent necessary) are also important considerations.

Appropriate Capital Structures.  We seek to invest in portfolio companies that are appropriately capitalized. First, we examine the amount of equity that is being invested by the company’s equity owners to determine whether there is a sufficient capital cushion beneath our invested capital. We also analyze the amount of leverage, and the characteristics of senior debt with lien priority over our senior subordinated debt. A key consideration is a strong balance sheet and sufficient free cash flow to service any debt we may invest.

Strong Competitive Position.  We invest in portfolio companies that have developed strong, defensible product or service offerings within their respective market segment(s). These companies should be well positioned to capitalize on organic and strategic growth opportunities, and should compete in industries with strong fundamentals and meaningful barriers to entry. We further analyze prospective portfolio investments in order to identify competitive advantages within their industry, which may result in superior operating margins or industry-leading growth.

Customer and Supplier Diversification.  We expect to invest in portfolio companies with sufficiently diverse customer and supplier bases. We believe these companies will be better able to endure industry consolidation, economic contraction and increased competition than those that are not sufficiently diversified. However, we also recognize that from time to time, an attractive investment opportunity with some concentration among its customer base or supply chain will present itself. We believe that concentration issues can be evaluated and, in some instances (whether due to supplier or customer product or platform diversification, the existence and quality of long-term agreements with such customers or suppliers or other select factors), mitigated, thus presenting a superior risk-weighted pricing scenario.

108


 
 

TABLE OF CONTENTS

Investment Objectives

Debt Investments

We target our debt investments, which are principally made through our business finance platform under the SBA 7(a) program, to produce a coupon rate of prime plus 2.75% which enables us to generate rapid sales of loans in the secondary market historically producing gains and with a yield on investment in excess of 30%. We typically structure our debt investments with the maximum seniority 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% or more of the portfolio company’s equity. As of June 30, 2017, substantially all of our SBA 7(a) portfolio at fair value consisted of debt investments that were secured by first or second priority liens on the assets of the portfolio company.

First Lien Loans.  Our first lien loans generally have terms of one to twenty-five years, provide for a variable interest rate, contain no prepayment penalties (however, the SBA will charge the borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years) and are secured by a first priority security interest in all existing and future assets of the borrower. Our first lien loans may take many forms, including revolving lines of credit, term loans and acquisition lines of credit.
Second Lien Loans.  Our second lien loans generally have terms of five to twenty five years, also primarily provide for a variable interest rate, contain no prepayment penalties (however, the SBA will charge the borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years) and are secured by a second priority security interest in all existing and future assets of the borrower. We typically only take second lien positions on additional collateral where we also have first lien positions on business assets.
Unsecured Loans.  We make few unsecured investments, primarily to our controlled portfolio companies, which because of our equity ownership are deemed to be more secure. Typically, these loans are to meet short-term funding needs and are repaid within 6 to 12 months.

We typically structure our debt investments 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 investments 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 in excess of 95% of our overall investments in number and dollar volume.

Equity Investments

While the vast majority of our investments have been structured as debt, we have in the past and expect in the future to make selective equity investments primarily as either strategic investments to enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments 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 objective 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 as another means of supporting their development and that of the integrated whole.

In Capco investments, we often make debt investments in conjunction with being granted equity in the company in the same class of security as the business owner receives upon funding. We generally seek to structure our equity investments to provide us with minority rights provisions and event-driven put rights. We also seek to obtain limited registration rights in connection with these investments, which may include “piggyback” registration rights.

109


 
 

TABLE OF CONTENTS

Investment Process

The members of our Senior Lending Team and our Executive Committee are responsible for all aspects of our investment selection process. The discussion below describes our investment procedures. The stages of our investment selection process are as follows:

Loan and Deal Generation/Origination

We believe that the combination of our brand, our portal, our patented NewTracker® technology, and our web presence as Your Business Solutions Company® have created an extensive loan and deal sourcing infrastructure. This is maximized through long-standing and extensive relationships with industry contacts, brokers, commercial and investment bankers, entrepreneurs, services providers (such as lawyers and accountants), as well as current and former clients, portfolio companies and our extensive network of strategic alliance partners. We supplement our relationships by the selective use of radio and television advertising aimed primarily at lending to the SMB market. We believe we have developed a reputation as a knowledgeable and reliable source of capital, providing value-added advice, prompt processing, and management and operations support to our portfolio companies.

We market our loan and investment products and services, and those of our controlled portfolio companies, through referrals from our alliance partners such as AIG, Amalgamated Bank, Credit Union National Association, E-Insure, ENT Federal Credit Union, The Hartford, Legacy Bank, Morgan Stanley Smith Barney, Navy Federal Credit Union, New York Community Bank, Lending Tree, LLC, Randolph Brooks Federal Credit Union, UBS Bank, Meineke Dealers Purchasing Cooperative and True Value Company, among others using our patented NewTracker® referral system as well as direct referrals from our web presence, www.newtekone.com. The patent for our NewTracker® referral system is a software application patent covering the systems and methods for tracking, reporting and performing processing activities and transactions in association with referral data and related information for a variety of product and service offerings in a business-to-business environment providing further for security and transparency between referring parties. This system allows us and our alliance partners to review in real time the status of any referral as well as to provide real time compliance oversight by the respective alliance partner, which we believe creates confidence between the referred business client, the referring alliance partner and us.

Additional deal sourcing and referrals are obtained from individual professionals in geographic markets that have signed up to provide referrals and earn commissions through our BizExec and TechExec Programs. The BizExecs and TechExecs are traditionally information technology professionals, CPAs, independent insurance agents and sales and/or marketing professionals. In addition, electronic payment processing services are marketed through independent sales representatives and web technology and eCommerce services are marketed through internet-based marketing and third-party resellers. A common thread across all business lines of our subsidiaries and controlled portfolio companies relates to acquiring customers at low cost. We seek to bundle our marketing efforts through our brand, our portal, our patented NewTracker® referral system, our new web presence as Your Business Solutions Company® and one easy entry point of contact. We expect that this approach will allow us to continue to cross-sell the financing services of our business finance platform to our customers and customers of our controlled portfolio companies, and to build upon our extensive deal sourcing infrastructure.

Screening

We screen all potential debt or equity investment proposals that we receive for suitability and consistency with our investment criteria (see “Portfolio Company Characteristics,” above). In screening potential investments, our Senior Lending Team and our Executive Committee utilize a value-oriented investment philosophy and commit resources to managing downside exposure. If a potential investment meets our basic investment criteria, a business service specialist or other member of our team is assigned to perform preliminary due diligence.

110


 
 

TABLE OF CONTENTS

SBA Lending Procedures

We originate loans under the SBA 7(a) Program in accordance with our credit and underwriting policy, which incorporates by reference the SBA Rules and Regulations as they relate to the financing of such loans, including the U.S. Small Business Administration Standard Operating Procedures, Policies and Procedures for Financing (“SOP 50 10”).

During the initial application process for a loan originated under the SBA 7(a) Program, a business service specialist assists and guides the applicant through the application process, which begins with the submission of an online form. The online loan processing system collects required information and ensures that all necessary forms are provided to the applicant and filled out. The system conducts two early automatic screenings focused primarily on whether (i) the requested loan is for an eligible purpose, (ii) the requested loan is for an eligible amount and (iii) the applicant is an eligible borrower. If the applicant is eligible to fill out the entire application, the online system pre-qualifies the applicant based on preset credit parameters that meet the standards of Newtek and the SBA.

Once the online form and the application materials have been completed, our underwriting department (the “Underwriting Department”) becomes primarily responsible for reviewing and analyzing the application in order to accurately assess the level of risk being undertaken in making a loan. The Underwriting Department is responsible for assuring that all information necessary to prudently analyze the risk associated with a loan application has been obtained and has been analyzed. Credit files are developed and maintained with the documentation received during the application process in such a manner as to facilitate file review during subsequent developments during the life of the loan.

Required Information

For a loan originated under the SBA 7(a) Program, the primary application document is SBA Form 1919 (Borrower Information Form) (“Form 1919”). Among other things, Form 1919 requires identifying information about the applicant, loan request, indebtedness, the principals, current or previous government financing, and certain other disclosures.

In addition to Form 1919, the following additional information is required:

an SBA Form 912 (Statement of Personal History), if question 1, 2, or 3 of Form 1919 is answered affirmatively;
an SBA Form 413 (Personal Financial Statement), for all owners of 20% or more (including the assets of the owner’s spouse and any minor children), and proposed guarantors;
business financial statements dated within 180 days prior to submission to SBA, consisting of (a) year-end balance sheets for the last three years, including detailed debt schedule, (b) year-end profit & loss (P&L) statements for the last three years, (c) reconciliation of net worth, (d) interim balance sheet, and (e) interim P&L statements;
a list of names and addresses of any subsidiaries and affiliates, including concerns in which the applicant holds a controlling interest and other concerns that may be affiliated by stock ownership, franchise, proposed merger or otherwise with the applicant, and business financial statements meeting the same requirements as above of such subsidiaries and affiliates;
the applicant’s original business license or certificate of doing business;
records of any loans the applicant may have applied for in the past;
signed personal and business federal income tax returns of the principals of the applicant’s business for previous three years;
personal résumés for each principal;
a brief history of the business and its challenges, including an explanation of why the SBA loan is needed and how it will help the business;
a copy of the applicant’s business lease, or note from the applicant’s landlord, giving terms of proposed lease; and

111


 
 

TABLE OF CONTENTS

if purchasing an existing business, (a) current balance sheet and P&L statement of business to be purchased, (b) previous two years federal income tax returns of the business, (c) proposed Bill of Sale including Terms of Sale, and (d) asking price with schedule of inventory, machinery and equipment, furniture and fixtures.

We view current financial information as the foundation of sound credit analysis. To that end, we verify all business income tax returns with the Internal Revenue Service and generally request that financial statements be submitted on an annual basis after the loan closes. For business entities or business guarantors, we request federal income tax returns for each fiscal year-end to meet the prior three-year submission requirement. For interim periods, we will accept management-prepared financial statements. The most recent financial information may not be more than 180 days old at the time of the approval of the loan, but we generally request that the most recent financial information not be older than 90 days in order to provide time for underwriting and submission to SBA for guaranty approval. For individuals or personal guarantors, we require a personal financial statement dated within 180 days of the application (sixty days is preferred) and personal income tax returns for the prior three years. In connection with each yearly update of business financial information, the personal financial information of each principal must also be updated. Spouses are required to sign all personal financial statements in order for the Underwriting Department to verify compliance with the SBA’s personal resource test. In addition, the Underwriting Department will ensure that there has been no adverse impact on financial condition of the applicant or its principals since the approval of the loan. If closing does not occur within ninety days of the date on which the loan is approved, updated business and personal financial statements must be obtained and any adverse change must be addressed before the proceeds of the loan may be disbursed. If closing does not occur within six months of the date on which the loan is approved, the applicant is generally required to reapply for the loan.

Stress Test

The standard underwriting process requires a stress test on the applicant’s interest rate to gauge the amount of increase that can be withstood by the applicant’s cash flow and still provide sufficient cash to service debt. The applicant’s cash flow is tested up to a 2% increase in interest rate. If the applicant’s debt service coverage ratio decreases to 1:1 or less than 1:1, the loan may only be made as an exception to our Underwriting Guidelines and would require the approval of our credit committee.

Required Site Visit

No loan will be funded without an authorized representative of Newtek first making a site visit to the business premises. We generally use a contracted vendor to make the required site visit but may from time to time send our own employees to perform this function. Each site visit will generate a narrative of the business property as well as photographs of the business property. Additional site visits will be made when a physical on-site inspection is warranted.

Credit Assessment of Applicant

Loan requests are assessed primarily based upon an analysis of the character, cash flow, capital, liquidity and collateral involved in the transaction.

Character:  We require a personal credit report to be obtained on any principal or guarantor involved in a loan transaction. Emphasis is placed upon the importance of individual credit histories, as this is a primary indicator of an individual’s willingness and ability to repay debt. Any material negative credit information must be explained in writing by the principal, and must be attached to the personal credit report in the credit file. No loan will be made where an individual’s credit history calls into question the repayment ability of the business operation. A loan request from an applicant who has declared bankruptcy within the ten years preceding the loan application will require special consideration. A thorough review of the facts behind the bankruptcy and impact on creditors will be undertaken in determining whether the principal has demonstrated the necessary willingness and ability to repay debts. In addition, we will examine whether the applicant and its principals and guarantors have abided by the laws of their community. Any situation where a serious question concerning a principal’s character exists will be reviewed on a case-by-case basis. Unresolved character issues are grounds for declining a loan request regardless of the applicant’s financial condition or performance.

112


 
 

TABLE OF CONTENTS

Cash Flow:  We recognize that cash flow is the primary and desired source of repayment on any loan, and therefore is the primary focus of the credit decision. Any transaction in which the repayment is not reasonably assured through cash flow will be declined, regardless of other possible credit strengths. At a minimum, combined EBITDA will be used to evaluate repayment ability. Other financial analysis techniques will be employed as needed to establish the reasonableness of repayment. Where repayment is based on past experience, the applicant must demonstrate minimum combined cash flow coverage of 1.2 times based upon the most recent fiscal year-end financial statement. A determination of the ability to repay will not be based solely upon interim operating results. Where repayment ability is not evident from historical combined earnings (including new businesses and changes of ownership), projections will be analyzed to determine whether repayment ability is reasonably assured. For changes in ownership, monthly cash flow forecasts will be analyzed to determine adequacy to meet all of the borrower’s needs.

For business acquisition applications, the applicant will be required to submit projections and support such projections by detailed assumptions made for all major revenue and expense categories and an explanation of how the projections will be met. Analysis must include comparisons with relevant Risk Management Association (“RMA”) industry averages. EBITDA must be reasonably forecast to exceed debt service requirements by at least 1.2 times, after accounting for the initial phase of operations. For change of ownership applications, projections will also be measured against the actual historical financial results of the seller of the business concern. Projections must demonstrate repayment ability of not less than 1.2 times.

Capital:  Capital is a strong traditional indicator of the financial health of a business. For going concern entities, the pro-forma leverage position, as measured by the debt to tangible net worth ratio, may not exceed the RMA industry median or 4 to 1, whichever is greater. For change of ownership transactions, generally 25% of total project costs should be contributed as equity resulting in debt to tangible net worth ratio of 3 to 1.

For a change of ownership transaction where a substantial portion of intangibles are included within the transaction, adequacy of capital will be determined based upon an evaluation of the business value and level of injection. In determining the legitimacy of the business value, the loan underwriter must utilize two SBA approved valuation methods, as outlined in SBA SOP 50 10. If the business value is found to be acceptable, and the equity injection into the project is within our requirements as outlined herein, then the capital position will be considered satisfactory.

As a general rule, shareholder and affiliate loans may be added back to net worth only if such loans will be subordinated for the life of the SBA loan, with no principal or interest payments to be made. Financing by the seller of the business may also be considered as equity if the loan will be placed on full standby for the life of the SBA loan. Adjustments to net worth to account for the difference between the book value and appraised value of fixed assets may be made only when supported by a current appraisal. Appraisals on a “subject to” basis are not acceptable.

Liquidity:  Liquidity, as measured by the current ratio, must be in line with the RMA industry average. An assessment of the adequacy of working capital is required. An assessment of the liquidity of a business is essential in determining the ability to meet future obligations. Lending to cash businesses such as hotels and restaurants requires less analysis of the liquidity of the business due to the timing of cash receipts. Industries with large receivables, payables, and inventory accounts require thorough review of the cash cycle of the business and evaluation of the applicant’s ability to manage these accounts. The current and quick ratios and turnover of receivables, payables and inventory are measured against the RMA industry median in determining the adequacy of these liquidity measures.

Collateral.  We are required to reasonably secure each loan transaction with all worthwhile and available assets. Pursuant to SBA SOP 50 10, we may not (and will not) decline a loan if the only weakness in the application is the value of collateral in relation to the loan amount, provided that all assets available to the business and its principals have been pledged. As set forth in SBA SOP 50 10, the SBA considers a loan to be fully secured if the lender has taken a security interest in all available fixed assets with a combined “net book value” adjusted up to the loan amounts below. For 7(a) loans, “fixed assets” means real estate, including land and structures and machinery and equipment owned by the business. “Net book value” is defined as an asset’s original price minus depreciation and amortization.

113


 
 

TABLE OF CONTENTS

We attempt to secure each loan transaction with as much real estate and liquid asset collateral as necessary; however, all fixed assets must be evaluated. Fixed assets are evaluated on the basis of the net book value to determine the realizable value among collateral types. Valuation factors are applied as follows:

Commercial real estate — 75%
Residential real estate — 85%
Vacant land — 50%
Machinery & Equipment — 50%
Furniture & Fixtures — 10%
Accounts receivable & inventory — 20%
Leasehold improvements — 5%
Certificate of Deposit — 100%
Regulated Licenses — will vary dependent upon type of license and geographic area. The liquidation rate used must be fully justified.

In addition to an assessment of the criteria specified above, there are certain special industry-specific requirements that will be considered in the loan application decision.

Change of Ownership:  The minimum equity injection required in a change of ownership transaction is generally 20% but may be lower for specific industries such as medical and dental practices, gas stations and convenience stores, flag hotels and “strong” non-lodging franchises.

In the event of financing from the seller of the business, the applicant must inject not less than 10% of the project cost; the seller of the business may provide the balance on a complete standby basis for the life of the SBA loan. Exceptions to the equity requirement are reviewed on a case-by-case basis.

For a change of ownership transaction, the application must be accompanied by a business plan including reasonable financial projections. The financial performance of the seller of the business must be evaluated based upon three years of corporate income tax returns and a current interim financial statement. Projections for the applicant must be in line with the historical financial performance at the business location. In cases where financial performance of the seller of the business is poor, a satisfactory explanation must be provided to detail the circumstances of performance. Projections for the applicant must be accompanied by detailed assumptions and be supported by information contained in the business plan.

Management should have related experience in the industry and demonstrate the ability to successfully operate the business. In the absence of satisfactory related experience, an assessment of management’s experience and capabilities, given the complexity and nature of the business, will be made. In the case of a franchise, we will generally take into account the reputation of a franchisor for providing worthwhile management assistance to its franchisees.

We carefully review change of ownership transactions. The loan underwriter will review the contract for sale, which will be included in the credit file. The contract for sale must include a complete breakdown of the purchase price, which must be justified through either a third party appraisal or directly by the loan underwriter through an approved valuation method specified in SBA SOP 50 10. The contract of sale must evidence an arm’s length transaction (but transactions between related parties are permitted so long as they are on an arm’s-length basis) which will preserve the existence of the small business or promote its sound development. In addition, a satisfactory reason for the sale of the business must be provided. The seller of the business must provide the prior three years of business tax returns and a current interim financial statement, as applicable.

Also in connection with a change of ownership transaction, the Loan Processing area of the Underwriting Department will order Uniform Commercial Code searches on the seller of the existing business. If such a search identifies any adverse information, the Loan Processor will advise the Underwriting Manager or Operations Manager so a prudent decision may be made with respect to the application.

114


 
 

TABLE OF CONTENTS

Real Estate Transactions:  Loan proceeds for the acquisition or refinancing of land or an existing building or for renovation or reconstruction of an existing building must meet the following criteria:

the property must be at least 51% owner-occupied pursuant to SBA policies; and
loan proceeds may not be used to remodel or convert any rental space in the property.

Loan proceeds for construction or refinancing of construction of a new building must meet the following criteria:

the property must be at least 60% owner-occupied pursuant to SBA policies; and
if the building is larger than current requirements of the applicant, projections must demonstrate that the applicant will need additional space within three years, and will use all of the additional space within ten years.

Commercial real estate appraisals are required on all primary collateral prior to the loan closing. In general, appraisals will be required as follows:

for loans up to $100,000 — a formal opinion of value prepared by a real estate professional with knowledge of the local market area;
for loans from $100,000 to $500,000 — a limited summary appraisal completed by a state certified appraiser;
for loans from $500,000 to $1 million — a limited summary appraisal by a Member of the Appraisal Institute (“MAI”) appraiser; and
for loans over $1 million — a complete self-contained appraisal by a MAI appraiser.

Environmental screenings and an environmental questionnaire are required for all commercial real estate taken as collateral.

In general, environmental reports are required as follows:

for real estate valued up to $500,000 — a transaction screen including a records review;
for real estate valued in excess of $500,000 — a Phase I Environmental Report; and
for the following types of property, a Phase I Environmental Report will be required regardless of property value: gasoline service stations, car washes, dry cleaners and any other business known to be in environmentally polluting industries.

In all cases for commercial real estate taken as collateral:

if further testing is recommended, the recommended level of testing will be performed prior to the loan closing; and
if the report indicates remedial action to be taken by the business, such actions must be completed prior to the loan closing and a closure letter must be provided prior to funding.

Medical Professionals:  In connection with a loan application relating to the financing of a medical business, all medical licenses will be verified, with the loss or non-renewal of license constituting grounds for denial of the application. In addition, medical professionals must provide evidence of malpractice liability insurance of at least $2,000,000 or the loan amount, whichever is higher. Malpractice insurance must be maintained for the life of the loan.

Franchise Lending:  All franchise loan applications will be evaluated as to eligibility by accessing SBA’s Franchise Registry. If the franchise is listed in the registry and the current franchise agreement is the same as the agreement listed in the registry, Newtek will not review the franchise agreement. However, the franchise agreement will be reviewed for eligibility by the loan underwriter when either of the following applies: (i) the franchise is not listed on the SBA’s Franchise Registry or (ii) the franchise is on the registry, but the franchisor has not provided a “Certification of No Change on Behalf of a Registered Franchisor” or a “Certification of Changes on Behalf of a Registered Franchisor.”

115


 
 

TABLE OF CONTENTS

Credit Package

For each loan application, the loan underwriter will prepare a credit package (the “Credit Package”). All credit and collateral issues are addressed in the Credit Package, including but not limited to, the terms and conditions of the loan request, use of proceeds, collateral adequacy, financial condition of the applicant and business, management strength, repayment ability and conditions precedent. The Underwriting Department will recommend approval, denial or modification of the loan application. The Credit Package is submitted to our credit committee for further review and final decision regarding the loan application.

Other than rejections for ineligibility of the applicant, the type of business or the loan purpose, NSBF may decline a loan application for the following reasons:

after taking into consideration prior liens and considered along with other credit factors, the net value of the collateral offered as security is not sufficient to protect the interest of the U.S. Government;
lack of reasonable assurance of ability to repay loan (and other obligations) from earnings;
lack of reasonable assurance that the business can be operated at a rate of profit sufficient to repay the loan (and other obligations) from earnings;
disproportion of loan requested and of debts to tangible net worth before and after the loan;
inadequate working capital after the disbursement of the loan;
the result of granting the financial assistance requested would be to replenish funds distributed to the owners, partners, or shareholders;
lack of satisfactory evidence that the funds required are not obtainable without undue hardship through utilization of personal credit or resources of the owner, partners or shareholders;
the major portion of the loan requested would be to refinance existing indebtedness presently financed through normal lending channels;
credit commensurate with applicant’s tangible net worth is already being provided on terms considered reasonable;
gross disproportion between owner’s actual investment and the loan requested;
lack of reasonable assurance that applicant will comply with the terms of the loan agreement;
unsatisfactory experience on an existing loan; or
economic or physical injury not substantiated.

If a loan application is accepted, we will issue a commitment letter to the applicant. After approval, the SBA and NSBF enter into a Loan Authorization Agreement which sets forth the terms and conditions for the SBA’s guaranty on the loan. The closing of a loan is handled by an internal attorney, whose primary responsibility is closing the loan in accordance with the related Loan Authorization in a manner consistent with prudent commercial loan closing procedures, to ensure that the SBA will not repudiate its guaranty due to ineligibility, noncompliance with SBA Rules and Regulations or defective documentation. Before loan proceeds are disbursed, the closing attorney will verify the applicant’s required capital injection, ensure that proceeds are being used for a permitted purpose and ensure that other requirements of the Loan Authorization Agreement (including, but not limited to, required insurance and lien positions and environmental considerations) and SBA Rules and Regulations (including the use of proper SBA forms) have been met.

Maintenance of Credit Files

A credit file is developed on each borrowing account. Credit files, in either hard copy format or electronic copy, are maintained by the Underwriting Department and organized according to a specified format. The file contains all documentation necessary to show: (a) the basis of the loan, (b) purpose, compliance with policy, conditions, rate, terms of repayment, collateral, and (c) the authority for granting the loan. The credit file is subject to review or audit by the SBA at any time. Upon final action being taken on a loan application, information necessary for closing and servicing will be copied and maintained, while

116


 
 

TABLE OF CONTENTS

information not considered necessary will be transferred to off-site storage. Once a loan has been disbursed in full, credit files containing all documentation will be transferred to the file room or other electronic storage media and maintained under the authority of the administration staff. Any individual needing an existing credit file must obtain it from the administration staff member having responsibility for safeguarding all credit files or access it by a prearranged electronic file process. Removal of any information from the file will compromise the credit file and is prohibited.

Other, Primarily Equity Investments

Due Diligence and Underwriting

In making loans or equity investments other than SBA 7(a) loans or similar conventional loans to SMBs, our Executive Committee will take a direct role in screening potential loans or investments, in supervising the due diligence process, in the preparation of deal documentation and the completion of the transactions. The members of the Executive Committee complete due diligence and analyze the relationships among the prospective portfolio company’s business plan, operations and expected financial performance. Due diligence may address some or all of the following depending on the size and nature of the proposed investment:

on-site visits with management and relevant key employees;
in-depth review of historical and projected financial statements, including covenant calculation work sheets;
interviews with customers and suppliers;
management background checks;
review reports by third-party accountants, outside counsel and other industry, operational or financial experts; and/or
review material contracts.

During the underwriting process, significant, ongoing attention is devoted to sensitivity analyses regarding whether a company might bear a significant “downside” case and remain profitable and in compliance with assumed financial covenants. These “downside” scenarios typically involve assumptions regarding the loss of key customers and/or suppliers, an economic downturn, adverse regulatory changes and other relevant stressors that we attempt to simulate in our quantitative and qualitative analyses. Further, we continually examine the effect of these scenarios on financial ratios and other metrics.

Approval, Documentation and Closing

Upon the completion of the due diligence process, the Executive Committee will review the results and determine if the transaction should proceed to approval. If approved by our Senior Lending Team and Executive Committee, the underwriting professionals heretofore involved proceed to documentation.

As and to the extent necessary, key documentation challenges are brought before our Senior Lending Team and Executive Committee for prompt discussion and resolution. Upon the completion of satisfactory documentation and the satisfaction of closing conditions, final approval is sought from our Executive Committee before closing and funding.

Ongoing Relationships with Portfolio Companies

Monitoring, Managerial Assistance

We have and will continue to monitor our portfolio companies on an ongoing basis. We monitor the financial trends of each portfolio company to determine if it is meeting its business plan and to assess the appropriate course of action for each company. We generally require our portfolio companies to provide annual audits, quarterly unaudited financial statements with management discussion and analysis and covenant compliance certificates, and monthly unaudited financial statements. Using these monthly financial statements, we calculate and evaluate all financial covenants and additional financial coverage ratios that might not be part of our covenant package in the loan documents. For purposes of analyzing a portfolio company’s financial performance, we sometimes adjust their financial statements to reflect pro-forma results in the event of a

117


 
 

TABLE OF CONTENTS

recent change of control, sale, acquisition or anticipated cost savings. Additionally, we believe that, through our integrated marketing and sale of each service line of NSBF and our controlled portfolio companies to our controlled portfolio companies (including electronic payment processing services through NMS and Premier, technology solutions through NTS, and payroll and benefits services through NPS) and non-affiliate portfolio companies, we have in place extensive and robust monitoring capabilities.

We have several methods of evaluating and monitoring the performance and fair value of our investments, including the following:

assessment of success in adhering to each portfolio company’s business plan and compliance with covenants;
periodic and regular contact with portfolio company management to discuss financial position, requirements and accomplishments;
comparisons to our other portfolio companies in the industry, if any;
attendance at and participation in board meetings; and/or
review of monthly and quarterly financial statements and financial projections for portfolio companies.

As part of our valuation procedures, we risk rate all of our investments including loans. In general, our rating system uses a scale of 1 to 8, with 1 being the lowest probability of default and principal loss. Our internal rating is not an exact system, but is used internally to estimate the probability of: (i) default on our debt securities and (ii) loss of our debt or investment principal, in the event of a default. In general, our internal rating system may also assist our valuation team in its determination of the estimated fair value of equity securities or equity-like securities. Our internal risk rating system generally encompasses both qualitative and quantitative aspects of our portfolio companies.

Our internal loan and investment risk rating system incorporates the following eight categories:

 
Rating   Summary Description
1   Acceptable — Highest Quality — Loans or investments that exhibit strong financial condition and repayment capacity supported by adequate financial information. Generally, as loans these credits are well secured by marketable collateral. These credits are current and have not demonstrated a history of late-pay or delinquency. There are no or few credit administration weaknesses. This score represents a combination of a strong acceptable credit and adequate or better credit administration. Newly underwritten loans or investments may be rated in this category if they clearly possess above-average attributes in all of the above areas. In general, as investments these credits are performing within our internal expectations, and potential risks to the applicable investment are considered to be neutral or favorable compared to any potential risks at the time of the original investment.
2   Acceptable — Average Quality — These loans or investments are supported by financial condition and repayment strengths that offset marginal weaknesses. Generally, as loans these credits are secured but may be less than fully secured. These loans are current or less than 30 days past due and may or may not have a history of late payments. They may contain non-material credit administration weaknesses or errors in verifying that do not put the guaranty at risk or cause wrong or poor credit decisions to be made. This risk rating should also be used to assign an initial risk rating to loans or investments that are recommended for approval by underwriting. Without a performance history and/or identified credit administration deficiencies, emphasis should be placed on meeting or exceeding underwriting standards collateral protection, industry experience, and guarantor strength. It is expected that most of our underwritten loans will be of this quality.

118


 
 

TABLE OF CONTENTS

 
Rating   Summary Description
3   Acceptable — Below Average — These loans or investments are the low-end range of acceptable. Loans would be less than fully secured and probably have a history of late pay and/or delinquency, though not severe. They contain one or more credit administration weaknesses that do not put the guaranty at risk or cause wrong or poor credit decisions to be made. This risk rating may also be used to identify new loans or investments that may not meet or exceed all underwriting standards, but are approved because of offsetting strengths in other areas. These credits, while of acceptable quality, typically do not possess the same strengths as those in the 1 or 2 categories. In general, the investment may be performing below internal expectations and quantitative or qualitative risks may have increased materially since the date of the investment.
4   Other Assets Especially Mentioned (OAEM or Special Mention) — Strong — These loans or investments are currently protected by sound worth and cash flow or other paying capacity, but exhibit a potentially higher risk situation than acceptable credits. While there is an undue or unwarranted credit risk, it is not yet to the point of justifying a substandard classification. Generally, these loans demonstrate some delinquency history and contain credit administration weaknesses. Performance may show signs of slippage, but can still be corrected. Credit does not require a specific allowance at this point but a risk of loss is present.
5   Substandard — Workout — These assets contain well defined weaknesses and are inadequately protected by the current sound worth and paying capacity of the borrower. Generally, loan collateral protects to a significant extent. There is a possibility of loss if the deficiencies are not corrected and secondary sources may have to be used to repay credit. Credit administration can range from very good to adequate indicating one or more oversights, errors, or omissions which are considered significant but not seriously misleading or causing an error in the loan decision. Performance has slipped and there are well-defined weaknesses. A specific allowance is in order or risk of loss is present.
6   Substandard — Liquidation — These assets contain well defined weaknesses and are inadequately protected by the current sound worth and paying capacity of the borrower or investee. In addition, the weaknesses are so severe that resurrection of the credit is unlikely. For loans, secondary sources will have to be used for repayment. Credits in this category would be severely stressed, nonperforming, and the business may be non-viable. There could be character and significant credit administration issues as well. A specific allowance should be established or the lack of one clearly justified.
7   Doubtful — This classification contains all of the weaknesses inherent in a substandard classification but with the added characteristic that the weaknesses make collection or repayment of principal in full, on the basis of existing facts, conditions and values, highly questionable and improbable. The probability of loss is very high, but the exact amount may not be estimable at the current point in time. Loans in this category are severely stressed, generally non-performing and/or involve a non-viable operation. Collateral may be difficult to value because of limited salability, no ready and available market, or unknown location or condition of the collateral. Credit administration weaknesses can range from few to severe and may jeopardize the credit as well as the guaranty. All such loans or investments should have a specific allowance.
8   Loss — Loans or investments classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is no longer warranted. This classification does not mean that the credit has no recovery or salvage value but, rather, it is not practical to defer writing off this asset. It is also possible that the credit decision cannot be supported by the credit administration process. Documents and verification are lacking; analysis is poor or undocumented, there is no assurance that the loan is eligible or that a correct credit decision was made. Loss loans are loans where a loss total can be clearly estimated. Losses should be taken during the period in which they are identified.

119


 
 

TABLE OF CONTENTS

We will monitor and, when appropriate, change the investment ratings assigned to each loan or investment in our portfolio. In connection with our valuation process, our management will review these investment ratings on a quarterly basis, and our Board will affirm such ratings. The investment rating of a particular investment should not, however, be deemed to be a guarantee of the investment’s future performance.

Historically, we have provided significant operating and managerial assistance to our portfolio companies and our controlled portfolio companies. As a BDC, we will continue to offer, and must provide upon request, managerial assistance to our portfolio companies. This assistance will typically involve, among other things, monitoring the operations and financial performance of our portfolio companies, participating in board and management meetings, consulting with and advising officers of portfolio companies and providing other organizational and financial assistance. We may sometimes receive fees for these services.

Valuation Procedures

We conduct the valuation of our assets, pursuant to which our net asset value shall be determined, at all times consistent with GAAP and the 1940 Act. Our valuation procedures are set forth in more detail below:

Securities for which market quotations are readily available on an exchange shall be valued at such price as of the closing price on the day of valuation. We may also obtain quotes with respect to certain of our investments from pricing services or brokers or dealers in order to value assets. When doing so, we will determine whether the quote obtained is sufficient according to GAAP to determine the fair value of the security. If determined adequate, we will use the quote obtained. We also employ independent third party valuation firms for certain of our investments for which there is not a readily available market value.

Securities for which reliable market quotations are not readily available or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of our Board, does not represent fair value, which we expect will represent a substantial majority of the investments in our portfolio, shall be valued as follows: (i) each portfolio company or investment is initially valued by the investment professionals responsible for the portfolio investment; (ii) preliminary valuation conclusions are documented and discussed with our Senior Lending Team and Executive Committee; (iii) independent third-party valuation firms engaged by, or on behalf of, the Board will conduct independent appraisals, review management’s preliminary valuations and prepare separate preliminary valuation conclusions on a selected basis; (iv) the Board reviews the preliminary valuations of members of our Senior Lending Team and Executive Committee and/or that of the third party valuation firm and responds to the valuation recommendation with comments, if any; and (v) the Board will discuss valuations and determine the fair value of each investment in our portfolio in good faith.

Determination of fair value involves subjective judgments and estimates not susceptible to substantiation by auditing procedures. Accordingly, under current auditing standards, the notes to our financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements.

The determination of fair value will generally be based on the following factors, as relevant:

the nature and realizable value of any collateral;
adherence to the portfolio company’s business plan and compliance with covenants;
periodic and regular contact with the portfolio company’s management to discuss financial position, requirements and accomplishments;
comparison to portfolio companies in the same industry, if any;
the portfolio company’s ability to make payments;
the portfolio company’s earnings and discounted cash flow;
the markets in which the portfolio company does business; and
comparisons to publicly traded securities.

120


 
 

TABLE OF CONTENTS

Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include, but are not limited to, the following:

private placements and restricted securities that do not have an active trading market;
securities whose trading has been suspended or for which market quotes are no longer available;
debt securities that have recently gone into default and for which there is no current market;
securities whose prices are stale;
securities affected by significant events; and
securities that our investment professionals believe were priced incorrectly.

Competition

We compete for SBA 7(a) and other SMB loans with other financial institutions and various SMB lenders, as well as other sources of funding. Additionally, competition for investment opportunities has emerged among alternative investment vehicles, such as collateralized loan obligations, some of which are sponsored by other alternative asset investors, as these entities have begun to focus on making investments in SMBs. As a result of these new entrants, competition for our investment opportunities may intensify. Many of these entities have greater financial and managerial resources than we do but we believe that they invariably lack the ability to process loans as quickly as we can and do not have the depth of our customer service capabilities. We believe we will be able to compete with these entities primarily on the basis of our financial technology infrastructure, our experience and reputation, our deep industry knowledge and ability to provide customized business solutions, our willingness to make smaller investments than other specialty finance companies, the breadth of our contacts, our responsive and efficient investment analysis and decision-making processes, and the investment terms we offer.

We and our controlled portfolio companies compete in a large number of markets for the sale of financial and other services to SMBs. Each of our controlled portfolio companies competes not only against suppliers in its particular state or region of the country but also against suppliers operating on a national or even a multi-national scale. None of the markets in which our controlled portfolio companies compete are dominated by a small number of companies that could materially alter the terms of the competition.

Our electronic payment processing portfolio companies compete with entities including Heartland Payment Systems, First National Bank of Omaha and Paymentech, L.P. Our managed technology solutions portfolio company competes with 1&1, Hosting.com, Discount ASP, Maxum ASP, GoDaddy®, Yahoo!®, BlueHost®, iPowerWeb® and Microsoft Live among others.

Our business finance platform competes with regional and national banks and non-bank lenders. Intuit® is bundling electronic payment processing, web hosting and payroll services similar to ours in offerings that compete in the same small-to midsize-business market.

In many cases, we believe that our competitors are not as able as we are to take advantage of changes in business practices due to technological developments and, for those with a larger size, are unable to offer the personalized service that many SMB owners and operators desire.

While we compete with many different providers in our various businesses, we have been unable to identify any direct and comprehensive competitors that deliver the same broad suite of services focused on the needs of the SMB market with the same marketing strategy as we do. Some of the competitive advantages of our platform include:

compatible products such as our e-commerce offerings that we are able to bundle to increase sales, reduce costs and reduce risks for our customers and enable us to sell two, three, or four products at the same time;
the patented NewTracker® referral system, which allows us and our portfolio companies to process new business utilizing a web-based, centralized processing point and provides back end scalability,

121


 
 

TABLE OF CONTENTS

and allows our alliance partners to offer a centralized access point for their SMB clients as part of their larger strategic approach to marketing, thus demonstrating their focus on providing a suite of services to the SMB market in addition to their core service;
the focus on developing and marketing business solutions and financial products and services aimed at the SMB market;
scalability, which allows us to size our business solutions capabilities very quickly to meet customer and market needs;
the ability to offer personalized service and competitive rates;
a strategy of multiple channel distribution, which gives us maximum exposure in the marketplace;
high quality customer service 24/7/365 across all business lines, with a focus primarily on absolute customer service and;
a telephonic interview process, as opposed to requiring handwritten or data-typing processes, which allows us to offer high levels of customer service and satisfaction, particularly for SMB owners who do not get this service from our competitors

Revenues by Geographic Area

During the six months ended June 30, 2017, and years ended December 31, 2016, 2015 and 2014, virtually all of our revenue was derived from customers in the United States, although our controlled portfolio company, NTS, which was a consolidated subsidiary for the period January 1, 2014 through November 11, 2014, provided pre-paid web site hosting services to customers in approximately 162 countries.

Employees

As of June 30, 2017, we had a total of 157 employees.

SBIC

We may apply for a Small Business Investment Company, or “SBIC,” license from the SBA if we believe that it will further our investment strategy and enhance our returns. If this application is approved, our SBIC subsidiary would be a wholly owned subsidiary and able to rely on an exclusion from the definition of “investment company” under the 1940 Act. Our SBIC subsidiary would have an investment objective substantially similar to ours and would be able to make similar types of investments in accordance with SBIC regulations.

Properties

We conduct our principal business activities in facilities leased from unrelated parties at market rates. Our headquarters are located in Lake Success, New York. Our operating subsidiaries have properties which are material to the conduct of their business as noted below. In addition, our Capcos maintain offices in each of the states in which they operate.

Below is a list of our leased offices and space as of June 30, 2017 which are material to the conduct of our business:

     
Location   Lease expiration   Purpose   Approximate square feet
1981 Marcus Avenue
Lake Success, NY 11042
  April 2027   Newtek Business Services, NSBF,
accounting, sales and human
resources, NY Capco offices and
portfolio companies offices
  36,000
4 Park Plaza Irvine, CA 92614   March 2018   NSBF office – lending operations   3,300
5901 Broken Sound Parkway NW Boca Raton, FL 33487   August 2018   NSBF lending operations   3,800

122


 
 

TABLE OF CONTENTS

We believe that our leased facilities are adequate to meet our current needs and that additional facilities are available to meet our development and expansion needs in existing and projected target markets.

Legal Proceedings

In the ordinary course of 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. For legal proceedings involving controlled portfolio companies, refer to “Risk Factors — Legal Proceedings — Portfolio Companies.”

123


 
 

TABLE OF CONTENTS

PORTFOLIO COMPANIES

The following tables set forth certain information as of June 30, 2017 regarding each portfolio company in which we had a debt or equity investment. The general terms of our expected debt and equity investments are described in “Business — Investments.” Other than these investments, our only formal relationships with our portfolio companies will be the managerial assistance we may provide upon request and the board observer or participation rights we may receive in connection with our investment.

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Performing SBA Unguaranteed Investments(1)
                                                                       
JWH Designs, LLC
1111 Boston Post Road Rye NY 10580
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/30/2027     $ 106.3     $ 106.3     $ 91.6       0.04%  
BQRS, Inc.
DBA Gresham Meineke Car Care Center 18081 SE Division Street Portland OR 97236
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/30/2027       62.5       62.5       55.0       0.02%  
J & M Civil Construction Services LLC
1221 County Road 4371 Decatur TX 76234
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2027       100.0       100.0       86.2       0.03%  
Veola's Day Spa and Wellness Center Inc.
2150 West 95th Street Chicago IL 60643
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2027       9.2       9.2       8.2       0.00%  
The Country House Restaurant, LLC
and Pelton Real Estate, LLC
677 US Route 7 Pittsford VT 05763
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2042       50.0       50.0       51.6       0.02%  
Qycell Corporation
600 S Etiwanda Ave Ontario CA 91761
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/30/2027       76.3       76.3       77.5       0.03%  
Bone Bar & Grill LLC
3547 Philipsburg Bigler Hwy West Decatur PA 16878
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2042       73.5       73.5       75.2       0.03%  
J. T. O'Neill Company, L.L.C
19972 Willowin Farm Lane Purcellville VA 20132
    Real Estate       Term Loan       Prime plus 2.75%       6/30/2027       15.0       15.0       12.9       0.01%  
Hamilton & Associates Real Estate and Investments Firm LLC
11776 West Sample Road Coral Springs FL 33065
    Real Estate       Term Loan       Prime plus 2.75%       6/30/2042       54.1       54.1       54.6       0.02%  
Safeguard Construction Company, Inc.

2819 Village Green Drive Aurora IL 60504
    Construction of Buildings       Term Loan       Prime plus 2.75%       6/30/2027       76.3       76.3       65.7       0.03%  
New Chicago Wholesale Bakery Inc.

795 Touhy Avenue Elk Grove Village IL 60007
    Food Manufacturing       Term Loan       Prime plus 2.75%       6/30/2027       15.0       15.0       14.3       0.01%  
Steigelbauer Associates Inc.

63 Flushing Avenue, Unit 101, Building 280 Brooklyn NY 11205
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2027       309.0       309.0       314.2       0.13%  
Miguel Fernando Borda PA dba BGR Dental
1825 Forest Hill Blvd Suite 205 and 206 West Palm Beach FL 33406
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/29/2027       50.0       50.0       44.8       0.02%  
ElKareh Brothers Investment, LLC
Best Choice Meats Inc 12646 and 12650 S Springfield Ave Alsip IL 60803
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/29/2027       448.8       448.8       456.4       0.18%  
Oakhill Farms, LLC
15 Carl Street Johnston
RI 02919
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2030       100.0       100.0       101.8       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

124


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Greensboro Plastic Surgical Associates,
PA 2716 Henry Street Greensboro NC 27405
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/29/2042     $ 578.0     $ 578.0     $ 573.3       0.23%  
Ocean Tran LLC and Dehal Trucking LLC
760 W. Charter Way Stockton CA 95206
    Truck Transportation       Term Loan       Prime plus 2.75%       6/29/2027       602.5       602.5       519.3       0.21%  
HG Ventures, Inc.

dba Diamond Head Trucking 100 Phoenix Drive Finleyville PA 15332
    Truck Transportation       Term Loan       Prime plus 2.75%       6/29/2030       1,006.8       1,006.8       876.6       0.35%  
Malhame & Company Publishers & Importers Inc.
180 Orville Road Bohemia NY 11780
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/29/2027       90.0       90.0       77.7       0.03%  
Intellixion LLC
7675 Highway 13 W. Suite 200 Savage MN 55378
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/29/2027       3.8       3.8       3.2       0.00%  
Best Bees Company
839 Albany Street Boston MA 02119
    Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       6/29/2027       22.5       22.5       19.4       0.01%  
Foxhop Fitness, LLC
4211 NW Federal Highway Jensen Beach FL 34957
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/28/2027       91.3       41.8       36.9       0.01%  
Akal Express Inc.
dba Truck Trailer Service Stop 2901 I 40 West Vega TX 79092
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/28/2042       60.0       60.0       62.1       0.02%  
Old Dominion Transportation Group, Inc.
1308 Devils Reach Road Woodbridge VA 22192
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       6/28/2027       1,133.3       1,133.3       998.4       0.40%  
Citibin, Inc.
20 Grand Avenue Suite 302 & 303 Brooklyn NY 11205
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       6/27/2027       125.0       125.0       107.8       0.04%  
Auxiliary Systems Inc., Sharrick Company, LLC & KMN, LLC
211 East 25th Street Norfolk VA 23504
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       6/27/2030       245.3       245.3       243.8       0.10%  
WB Cleaners Inc.
DBA $2.75 Cleaners 5101 University Park Way Winston-Salem NC 27106
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/27/2027       22.5       22.5       22.1       0.01%  
Ains Holding Company, LLC
122 West 26th Street New York NY 10011
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/26/2027       1,175.0       1,175.0       1,035.9       0.41%  
Four Seasons Laser Center Inc. 4720 NW 2nd Avenue Unit D-104 and Unit D-105 Boca Raton FL 33498     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/26/2042       216.3       163.4       168.4       0.07%  
Vella Construction Enterprises, Inc. dba Vella Construction 316 28th Avenue San Mateo CA 94403     Construction of Buildings       Term Loan       Prime plus 2.75%       6/23/2027       22.5       22.5       19.4       0.01%  
Rustic LLC
4779 State Road AA Tebbetts MO 65080
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/23/2042       18.8       18.8       16.9       0.01%  
Northern Industries, LLC
W 5585 Dehart Drive Tomahawk WI 54484
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/23/2042       57.8       57.8       61.0       0.02%  
Birches Group, LLC
228 East 45th St. 12th FL South New York NY 10017
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/22/2027       50.0       50.0       43.1       0.02%  
Tarver-Henley Inc. and Tar-Hen LLC
2125 College Avenue Jackson AL 36545
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       6/21/2042       320.0       320.0       317.5       0.13%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

125


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
704 Meat Center Inc.
dba El Mercado and La Plaza Mercado 704 Park Street Hartford CT 06110
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/20/2042     $ 175.0     $ 175.0     $ 180.9       0.07%  
Sanabi Investment, LLC
dba Oscar's Moving and Storage 11421 N W 107th Street, #13 Miami FL 33178
    Truck Transportation       Term Loan       Prime plus 2.75%       6/20/2027       124.0       124.0       112.5       0.04%  
Scarlet Spartan Inc.
dba FastSigns of Brighton 533 W. Grand River Avenue Brighton MI 48116
    Administrative and Support Services       Term Loan       Prime plus 2.75%       6/19/2027       55.0       37.6       33.5       0.01%  
Don G. Timpton DDS & Associates PA and Indsaad Properties, LLC
11535 Carmel Commons Blvd. Charlotte NC 28226
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/16/2042       400.0       400.0       384.5       0.15%  
All Regional Recyclers of Wood LLC
dba ARROW, Superior Carting, LLC dba 104 Wooster Street Bethel CT 06801
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       6/15/2042       314.0       314.0       310.1       0.12%  
JAM Media Solutions, LLC
4744 Tackawanna Street Philadelphia PA 19124
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/15/2027       62.5       62.5       53.9       0.02%  
Tele Tax Express Inc., El Rancho Paiso, LLC and Nestor Romero 166 Getty Avenue Paterson NJ 07503     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/14/2042       92.5       92.5       95.2       0.04%  
Susan Hughes dba Aloha Junction B and B 19-4037 Olapalapa Road Volcano HI 96785     Accommodation       Term Loan       Prime plus 2.75%       6/14/2042       62.5       62.5       66.0       0.03%  
Hull's Kitchen, LLC and HK Too, LLC
19 Hulls Shore Dr hull MA 02045
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/14/2042       96.3       96.3       100.9       0.04%  
ESA 365 Corp and Lucathor Realty LLC
2420 Grand Avenue Baldwin NY 11520
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/14/2042       22.5       22.5       22.8       0.01%  
Yachting Solutions LLC
229 Commercial Street Rockport ME 04856
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       6/12/2027       118.8       118.8       111.5       0.04%  
Refoleen Inc dba Spice and Tea Exchange 849 E Commerce Street Suite 121 San Antonio TX 78205     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/8/2027       3.5       3.5       3.0       0.00%  
Earth First Recycling, LLC and 191 Clark Road, LLC
400 Island Park Road Easton PA 18040
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/5/2027       354.5       354.5       353.7       0.14%  
Skydive California, LLC
25001 S Kasson Rd Tracy CA 95301
    Educational Services       Term Loan       Prime plus 2.75%       6/2/2027       55.0       55.0       55.9       0.02%  
SCW, LLC
dba Arthur Murray Dance Studio 2383 Old Dixwell Avenue Hamden CT 06518
    Educational Services       Term Loan       Prime plus 2.75%       6/2/2042       146.0       146.0       146.0       0.06%  
Speaker City, Inc. and Speaker Town, LLC
dba Rollin Thunder 246 East Belt Boulevard Richmond VA 23224
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       6/1/2042       45.6       45.6       46.4       0.02%  
Sage Oil LLC
8913 Egyptian Avenue Las Vegas NV 89143
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       5/31/2027       22.5       22.5       19.4       0.01%  
Funtime, LLC and Universal Entertainment Group LLC
13200 W. Foxfire Dr #144 Surprise AZ 85387
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/31/2027       66.3       66.3       58.1       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

126


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Impact Grounds Maintenance and Design, Inc.
dba Impact Landscaping and 6291 Chittenden Road Boston Heights OH 44236
    Administrative and Support Services       Term Loan       Prime plus 2.75%       5/31/2042     $ 79.4     $ 79.4     $ 82.3       0.03%  
Ricnet III, Inc.
dba Edible Arrangements 716 Foxcroft Ave Martinsburg WV 25401
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/31/2027       15.0       14.8       13.0       0.01%  
Haroon Baig, Inc.
dba US1 Petrol 1280-1290 Dixwell Avenue Hamden CT 06514
    Gasoline Stations       Term Loan       Prime plus 2.75%       5/31/2042       264.0       264.0       278.7       0.11%  
Eagle Wood Works LLC
1448 Horsehead Road Lugoff SC 29078
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       5/26/2027       12.0       12.0       11.0       0.00%  
Hurricane Group, Inc.
312 West Fourth Street Carson City NV 89703
    Other Information Services       Term Loan       Prime plus 2.75%       5/26/2027       75.0       75.0       64.6       0.03%  
Michell Auto Repair, LLC and and C&M Mitchell, LLC
615 Hampton Park Blvd., Suite F Capital Heights MD 20743
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/26/2042       193.3       193.3       197.6       0.08%  
Swantown Inn & Spa LLC
1431 11th Avenue SE Olympia WI 98501
    Accommodation       Term Loan       Prime plus 2.75%       5/26/2042       116.0       7.4       7.8       0.00%  
Chet Lemon Enterprises LLC
dba All American Sports 1544 Lane Park Cutoff Tavares FL 32778
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/26/2042       792.5       792.5       836.7       0.33%  
Locavore LLC
dba Paloma Restaurant 401 S. Guadalupe Street Santa Fe NM 87501
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/25/2027       50.0       50.0       44.6       0.02%  
Abdul Naushad MD PC dba Advanced Pain Centers 2865 James Boulevard Poplar Bluff MO 63901     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/25/2042       393.8       393.8       404.6       0.16%  
Demand Printing Solutions Inc. 3900 Rutledge Rd NE Albuquerque NM 87109     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/25/2027       213.3       213.3       200.6       0.08%  
Beyond Waves A Unique Salon LLC and Lori Ann Carlson 2290 Foxon Rd Route 80 North Branford CT 06471     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/25/2027       15.0       15.0       13.1       0.01%  
Jung Design Inc.
10857 Pine Bluff Drive Fisher IN 46037
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/25/2027       9.0       9.0       7.8       0.00%  
Juliador Resources LLC DBA Cue Hair Salon and Skin Care 2901 West Coast Highway, Suite 110 Newport Beach CA 92663     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/24/2027       22.5       22.5       19.4       0.01%  
Innovim, LLC
7474 Greenway Center Drive, Suite 800 Greenbelt MD 20770
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/24/2027       337.5       337.5       290.9       0.12%  
Shaffer Automotive Repair, LLC
1485 North McQueen Rd #1 Gilbert AZ 85233
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/24/2030       135.8       135.8       127.0       0.05%  
Gill Express Inc. and Gill Express 2 LLC
2372 Walnut Avenue Livingston CA 95334
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/23/2042       338.8       338.8       335.0       0.13%  
Southeast Recycling, LLC and Southeast Land Holdings LLC
dba 67 Motor 6775 Reynolda Road Pfafftown NC 27040
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       5/23/2042       181.4       181.4       189.6       0.08%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

127


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Prestige Construction of Florida, LLC
1404 Yorktown Street Suite E Deland FL 34944
    Construction of Buildings       Term Loan       Prime plus 2.75%       5/23/2042     $ 336.4     $ 336.4     $ 327.5       0.13%  
GEM2K, LLC
dba Precision Precast Group 4150 E Magnolia Street Phoenix AZ 85034
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       5/19/2027       162.5       162.5       145.7       0.06%  
Hayden Trucking LLC 11540 Eagle Vista Drive Fort Worth TX 76179     Truck Transportation       Term Loan       Prime plus 2.75%       5/19/2027       262.5       262.5       242.0       0.10%  
Tres K Deli, Grocery, Fruit and Meat Inc. 125 West Tremont Ave Bronx NY 10453     Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/19/2027       8.3       8.3       7.7       0.00%  
Iron Men Home Repair, Inc. and Ironmen House Lifting Inc. 132 North Wellwood Ave Lindenhurst NY 11757     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/19/2042       582.5       582.5       587.9       0.23%  
J Harris Trucking LLC
2040 5 1/2 Mile Road Racine WI 53402
    Truck Transportation       Term Loan       Prime plus 2.75%       5/19/2027       19.5       19.5       18.5       0.01%  
Enfield Tractor & Equipment Co 1751 S. Wesleyan Blvd Rocky Mount NC 27803     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/19/2027       296.3       296.3       283.3       0.11%  
PS Camping, Inc. dba Prospectors RV Resort 436594> Highway 50 Canon City CO 81212     Accommodation       Term Loan       Prime plus 2.75%       5/19/2042       257.8       257.8       270.4       0.11%  
Mr. B's Bicycles & Mopeds, Inc.
1870 S. 4th Avenue Yuma AZ 85364
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       5/18/2042       146.8       146.8       147.3       0.06%  
Waterford Plumbing Co, Inc.
2425 W. Cuyler Ave Chicago IL 60618
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/18/2027       50.0       50.0       43.9       0.02%  
New Image Building Services, Inc.
1405 Combermere Drive Troy
MI 48083
    Administrative and Support Services       Term Loan       Prime plus 2.75%       5/18/2027       150.8       150.8       134.7       0.05%  
Bay Car Wash LLC
952 South Commercial Street and West Magnolia Aransas Pass TX 78336
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/18/2042       120.8       120.8       122.2       0.05%  
Computech Computers Inc.
40-24 76th Street, Office #2B Elmhurst NY 11373
    Educational Services       Term Loan       Prime plus 2.75%       5/17/2027       50.0       50.0       43.1       0.02%  
Arco Electrical Contractors Inc.
dba Arco Construction Group 22-24 South Seventh Street Elizabeth NJ 07202
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/16/2027       360.0       360.0       330.8       0.13%  
5 Stars Learning Center Inc
14 Paine Avenue Irvington NJ 07111
    Social Assistance       Term Loan       Prime plus 2.75%       5/16/2042       61.8       61.8       62.1       0.02%  
Batter & Company, LLC
dba Batter Co. Dessert Collection 2101 N. Federal Highway Suite D101A Pompano Beach FL 33062
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/16/2027       53.8       53.8       47.3       0.02%  
Band Sawn Lumber, LLC and Nathan Ryan Adams 1873 State Highway 29 Johnstown NY 12095     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       5/15/2042       113.8       113.8       112.1       0.04%  
Keys Armored Express, Inc.
1517 Dennis Street Key West FL 33040
    Administrative and Support Services       Term Loan       Prime plus 2.75%       5/12/2027       40.0       40.0       36.0       0.01%  
Sanderson Distribution Inc.
100 Daniel Drive Alamo CA 94507
    Truck Transportation       Term Loan       Prime plus 2.75%       5/12/2027       10.5       10.5       9.1       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

128


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
SG Linke LLC
413 N Alfaya Trail P11 Orlando FL 32828
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       5/12/2027     $ 108.3     $ 59.1     $ 60.1       0.02%  
B G F Bobby Q's Inc
447 N. Main Street Freeport NY 11520
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/11/2027       7.5       7.5       7.3       0.00%  
Estelle Finkel Educational Associates, LLC
125 West Mount Pleasant Avenue Livingston NJ 07039
    Educational Services       Term Loan       Prime plus 2.75%       5/11/2027       118.8       118.8       102.4       0.04%  
Labmates, LLC
141 Watertown Road Thomaston CT 06787
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       5/10/2027       100.0       100.0       95.4       0.04%  
NHS, LLC
212 N Douglas Ave Ellsworth KS 67439
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/9/2027       88.5       88.5       79.6       0.03%  
NHS, LLC
212 N Douglas Ave Ellsworth KS 67439
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/9/2042       21.9       21.9       20.5       0.01%  
Innovation Transport, LLC
1 International Blvd Mahwah NJ 07495
    Truck Transportation       Term Loan       Prime plus 2.75%       5/9/2027       86.3       86.3       81.3       0.03%  
1872 Rosecrans, LLC
dba Goodbar 1872 Rosecrans Street San Diego CA 92106
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/9/2027       62.5       43.6       37.9       0.02%  
Arclay, LLC
49 Geyser Road Suite 100 Saratoga Springs NY 12866
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       5/5/2030       145.9       145.9       134.4       0.05%  
Benchmark Building, Inc. 1439 Stargazer Terrace Sanford FL 32771     Construction of Buildings       Term Loan       Prime plus 2.75%       5/5/2027       22.5       22.5       19.4       0.01%  
Cable Management LLC
290 Pratt Street Meriden CT 06450
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       5/3/2027       59.6       59.6       55.9       0.02%  
Fine Arts Center of Easley, Inc. dba Midtown Music 117 S. Pendleton Street Easley SC 29640     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       5/2/2042       116.3       116.3       122.7       0.05%  
Zahmel Restaurant Suppliers Corp dba Cash & Carry; Zahners Hardware; Zan 62-35 30th Avenue Woodside NY 11377     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       4/28/2027       88.8       88.2       77.0       0.03%  
Georgia Productions Services LLC
825 Sunset Drive Locust Grove GA 30253
    Rental and Leasing Services       Term Loan       Prime plus 2.75%       4/28/2027       91.3       90.7       83.3       0.03%  
Love and Glory Learning Center, Inc.
4911 N. 42nd St. Tampa
FL 33610
    Social Assistance       Term Loan       Prime plus 2.75%       4/28/2042       78.0       77.9       77.4       0.03%  
JMA Inc. dba Primecut and Mezzo; Primecut at Marquee 393 Charles Street Providence RI 02904     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/27/2042       222.5       222.2       234.6       0.09%  
Sneads Ferry Foods, Inc. dba DQ Grill & Chill 920 Highway 210 Sneads Ferry NC 28460     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/27/2042       618.3       183.5       193.7       0.08%  
Asheville's Fun Depot, LLC
7 Roberts Road Asheville NC 28803
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/26/2027       87.5       87.0       88.5       0.04%  
Carl Joseph Johnston dba Viking Transport 316 Liberty St. Santa Cruz CA 95060     Truck Transportation       Term Loan       Prime plus 2.75%       4/26/2027       53.2       32.4       30.7       0.01%  
Resident Research, LLC
4400 Morris Park Drive Suite M Charlotte NC 28277
    Other Information Services       Term Loan       Prime plus 2.75%       4/24/2027       100.0       99.4       85.7       0.03%  
Getting Even LLC
dba The Zoo Health Club 377 South Willow Street, Suite B 2-1 Manchester NH 03103
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/21/2027       7.5       7.5       6.7       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

129


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Ralph's Hair Salon, Inc.
175 NW 14th Street Homestead FL 33030
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/21/2042     $ 50.0     $ 49.9     $ 50.8       0.02%  
M.E. Interiors LLC
10425 S. 82nd E Ave Tulsa OK 74133
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/20/2027       139.2       138.3       119.2       0.05%  
MJ and M Home Improvements LLC
DBA House Doctors 13791 E. Rice Place Unit 110 Aurora CO 80015
    Repair and Maintenance       Term Loan       Prime plus 2.75%       4/20/2027       20.5       20.4       17.9       0.01%  
Condron Brothers LLC
DBA Luv 2 Play 4790 La Sierra Avenue Riverside CA 92505
    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
2668 Britt Trail Drive Lawrence GA 30045
    Truck Transportation       Term Loan       Prime plus 2.75%       4/17/2027       12.8       12.7       11.8       0.00%  
Carpeteria (Markarian) Co.
8400 Miramar Road Suite
135 San Diego
CA 92126
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       4/13/2027       132.8       132.1       130.7       0.05%  
Bloomer Machine & Fab, Inc and Dale Stertz Properties 7697 State Highway 64 Bloomer WI 54724     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/13/2042       205.5       205.2       211.5       0.08%  
Butternuts Beer and Ale LLC
4021 Highway 51 Garrattsville NY 13342
    Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       4/12/2027       73.7       73.3       74.5       0.03%  
Citizens Lanes, LLC
5100 Goodson Connector Road Union City GA 30291
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/31/2042       619.4       618.0       652.1       0.26%  
The Altitude Group, LLC and Core Home Security, LLC
949 Clint Moore Road, Unit 949A Boca Raton FL 33487
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/31/2027       50.0       49.4       42.6       0.02%  
Shelter Harbor Inn, Inc.
10 Wagner Road Westerly RI 02891
    Accommodation       Term Loan       Prime plus 2.75%       3/31/2042       207.5       207.0       218.5       0.09%  
Golden Hen Inc. dba Cafe 468 W. Cheltenham Avenue Philadelphia PA 19126     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/31/2027       64.7       64.0       55.8       0.02%  
Landmark Ventures USA, Inc. 475 Park Avenue South 25th Floor New York NY 10016     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       3/31/2027       187.5       185.3       159.6       0.06%  
MIT LLC
11 North Peach ST. Medford OR 97504
    Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       3/31/2042       87.5       87.3       92.1       0.04%  
Applied Integrated Technologies, Inc. 7120 Samuel Morse Drive #150 Columbia MD 21046     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/31/2027       125.0       123.6       106.4       0.04%  
Bear Trail Lodge LLC
Mile 1 Bear Trail Road King Salmon AK 99613
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/31/2042       552.5       551.2       574.7       0.23%  
KWG Industries LLC
dba Peterson & Marsh Metal Industries 330 Roycefield Road Unit B Hillsborough NJ 08844
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       3/30/2027       30.0       29.7       29.0       0.01%  
Municipal Hydro Sevices Inc. 92 Kilgore Road Carrollton GA 30116     Rental and Leasing Services       Term Loan       Prime plus 2.75%       3/30/2027       312.5       309.1       283.8       0.11%  
Signature Rooms, Inc dba Gallery Furniture 2066 Milford Avenue Medford NY 11706     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       3/30/2042       495.8       494.6       517.9       0.21%  
Sea Smoke Barbeque, Corp and Danwen LLC
20 Island Farm Road Oak Bluffs MA 02557
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/30/2042       236.5       236.0       238.1       0.10%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

130


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Schafer Fisheries Inc.
21985 Waller Road Fulton IL 61252
    Food Manufacturing       Term Loan       Prime plus 2.75%       3/30/2042     $ 258.6     $ 258.4     $ 264.5       0.11%  
Discount Price, LLC
dba Robert's Market 2 Hill Road Franklin NH 03235
    Gasoline Stations       Term Loan       Prime plus 2.75%       3/29/2042       206.3       205.8       209.6       0.08%  
Douglas K. Soderblom. dba Loma Linda Optometry 25815 Barton Rdad, Unit C104 Loma Linda CA 92354     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/29/2027       100.0       98.8       89.5       0.04%  
Gauri Hospitality Group LLC
dba Microtel Inns & Suites by Wyndham 1221 Kentucky Mills Drive Louisville KY 40299
    Accommodation       Term Loan       Prime plus 2.75%       3/29/2042       1,056.3       1,053.8       1,102.8       0.44%  
First Sail Group Inc. and Omen Board Industires LLC
5001 208th Street Lynnwood WA 98036
    Nonstore Retailers       Term Loan       Prime plus 2.75%       3/29/2027       20.0       19.8       18.2       0.01%  
H and H Hotshot Services, Inc. dba AA Hotshot & Logistics 5455 N 51st Street, # 30 Glendale AZ 85301     Couriers and Messengers       Term Loan       Prime plus 2.75%       3/29/2030       97.5       96.7       84.2       0.03%  
New England Country Day School, Inc. and Thomas D. Walker 27 Kenosia Avenue Danbury CT 06810     Social Assistance       Term Loan       Prime plus 2.75%       3/28/2042       362.8       362.6       365.8       0.15%  
American Pharmaceutical Innovation Company, LLC
1425 Centre Circle Downers Grove IL 60515
    Chemical Manufacturing       Term Loan       Prime plus 2.75%       3/28/2027       30.0       29.7       25.6       0.01%  
Pecos Entertainment LLC
dba State Theater and Pecos Inn LLC dba Econo 421 S. Oak Street Pecos TX 79772
    Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       3/27/2042       582.9       137.2       144.7       0.06%  
Heil & Hornik LLC
dba Elysium Tennis 7637 C. Commerce Place Plain City OH 43064
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/27/2042       928.6       926.5       928.0       0.37%  
Robert Dixon PA dba Law Offices of Robert Dixon 4501 NW 2nd Avenue Miami FL 33127     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/24/2042       435.5       428.0       447.5       0.18%  
Ericon Inc. dba Quik Pik 740 Davenport Avenue Freemont NE 68025     Gasoline Stations       Term Loan       Prime plus 2.75%       3/24/2027       62.5       61.8       59.5       0.02%  
Executive Fitness & Nutrition Inc. 8610 Roosevelt Avenue Suite 2 Jackson Heights NY 11372     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/23/2027       20.2       20.0       19.6       0.01%  
Denton Bio Fuels LLC and American Bio Source LLC
624 W. University Dr. Suite 359 TX TX 76201
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       3/23/2027       59.3       58.6       53.5       0.02%  
Color Graphic Press, Inc.
42 Main Street Nyack
NY 10960
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       3/23/2027       120.0       118.6       120.5       0.05%  
JBK Truck Trailer and Bus Inc.
8669 South State Road 67 Camby IN 46113
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/23/2042       88.8       61.5       64.4       0.03%  
Baton Rouge Cargo Services Inc. and 6507 Westport, LLC
6507 Westport Avenue Shreveport LA 71129
    Truck Transportation       Term Loan       Prime plus 2.75%       3/22/2042       643.1       641.6       660.7       0.26%  
Vehicle Safety supply LLC
707 Femimore Road Mamaroneck NY 10543
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/21/2027       22.5       22.2       19.2       0.01%  
J Sivilis LLC
dba Pet Wants 3883 Catalina Dr Cocoa FL 32926
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/17/2027       12.3       12.2       10.8       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

131


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Reservoir International LLC
502 Parks McMillan Drive Raeford NC 28376
    Educational Services       Term Loan       Prime plus 2.75%       3/16/2027     $ 100.0     $ 98.8     $ 91.9       0.04%  
The Purple Cow House of Pancake Inc 6 & 10 Skowhegan Road Fairfield ME 04937     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/16/2042       162.5       161.8       170.8       0.07%  
Texcor, Inc. dba Texas Corral, Texas Coral Restaurants II, Inc. T.C. of 5880 US Hwy6 Portage IN 46368     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/16/2027       300.0       297.2       301.7       0.12%  
Alive Design, LLC
234 Middle Street Middletown CT 06457
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/13/2027       22.5       22.2       19.2       0.01%  
1MTX LLC and Sunrise Transportation and Logistics, LLC and Mustafa M 6510 North Broadway Saint Louis MO 63147     Truck Transportation       Term Loan       Prime plus 2.75%       3/13/2027       702.9       694.9       598.5       0.24%  
Dwayne Bernard Tate 1238 Woodcliff Court SW Lilburn GA 30047     Truck Transportation       Term Loan       Prime plus 2.75%       3/10/2027       10.5       10.4       9.5       0.00%  
Elegant Occasions, LLC
dba E Productions 3650 Coral Ridge Drive Units 103-104 Coral Springs FL 33065
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/10/2042       588.2       587.8       591.7       0.24%  
Anthony LLC
dba Star of Woodward Market 5730 Woodward Ave Detroit MI 48202
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/9/2042       115.0       115.0       121.3       0.05%  
E & P Holdings 1 LLC and Evans & Paul Unlimited Corp. and Evans & P 140 Dupont Street Plainview NY 11803     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       3/9/2027       125.0       123.5       108.8       0.04%  
Allegro Assisted Living Of Texas 3400 Remington Drive Plano TX 75023     Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       3/6/2027       96.0       94.9       96.2       0.04%  
Robbie E. Bakery and Cafe LLC
4570 Lyons Road Suite 112 Coconut Creek FL 33073
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/3/2027       62.5       61.8       53.4       0.02%  
Podium Auto Sales Inc and RRS Property, LLC
246 S. Dixie Highway Pompano Beach FL 33060
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/3/2042       90.8       90.5       90.5       0.04%  
SSI Refrigerated Express Inc. and Robert M Stallone dba SSI Express 1001 E. Cooley Drive Suite 102 Colton CA 92324     Truck Transportation       Term Loan       Prime plus 2.75%       2/28/2027       235.5       231.4       199.3       0.08%  
Weeping Willow Kennels, Inc and Aileen N Black 6041 Hammond School Road Salisbury MD 21804     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2042       140.0       139.5       142.4       0.06%  
Getting Even LLC
dba The Zoo Health Club 377 South Willow Street
Unit B2-1 Manchester
NH 03103
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2027       96.2       94.6       84.8       0.03%  
Total Document Solutions Inc and, TDS Services, LLC
2515 North Shiloh Drive Fayetteville AR 72704
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       2/27/2030       312.5       308.7       284.9       0.11%  
McNally Enterprises Inc. 1010 N. Grove Street Anaheim
CA 92806
    Administrative and Support Services       Term Loan       Prime plus 2.75%       2/27/2027       65.0       63.8       57.2       0.02%  
Teracore Inc. 3300 Holcomb Bridge Road, Suite 226 Norcross GA 30092     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/27/2027       163.7       160.9       139.1       0.06%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

132


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
John Finn Associates LLC
, Greenslate LLC, Finn Technology, LLC 150 West 30th St. New York NY 10001
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/27/2027     $ 675.0     $ 663.1     $ 636.9       0.25%  
B & J Bicycle Shop Inc. 1620 E. Sample Rd Pompano Beach FL 33064     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       2/24/2027       15.0       14.7       15.0       0.01%  
TMJ Pizza Mesa LLC
dba Rosati's Pizza Restaurant 2235 S. Power Rd Suite 118 Mesa AZ 85209
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/24/2027       106.3       105.6       98.6       0.04%  
3W Enterprises LLC
2727 Industrial Parkway Elkhart IN 46516
    Textile Product Mills       Term Loan       Prime plus 2.75%       2/24/2042       81.7       81.4       82.1       0.03%  
Eternal Services Incorporated, Ward-Wilson Funeral Home, LLC and Ward W 2414 Hartford Highway Dothan AL 36305     Personal and Laundry Services       Term Loan       8.0325%       2/23/2042       685.0       684.1       721.9       0.29%  
Victorian Restaurant and Tavern, LLC
226 Maple Avenue Cheshire CT 06410
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/22/2042       107.5       107.2       105.6       0.04%  
DER Services, LLC
dba A.K.A. Sports
34904 W. B. Michigan Ave Wayne MI 48184
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       2/17/2042       40.0       39.9       42.1       0.02%  
Bike Slug, LLC, Bike Slug Holdings Inc. and Seven Rivers Group, LLC
1050 Bedford Avenue Brooklyn NY 11205
    Repair and Maintenance       Term Loan       Prime plus 2.75%       2/17/2027       19.5       19.2       16.5       0.01%  
Ameritube, LLC and Ravone Properties, LLC
1000 North State. Highway 77 Hillsboro TX 76645
    Primary Metal Manufacturing       Term Loan       Prime plus 2.75%       2/14/2042       185.0       184.4       194.6       0.08%  
R&S Barnes Enterprises, Inc. dba Massage Envy Spa 8465 Elk Grove Florin Road Suite 105 Elk Grove CA 95624     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/10/2027       93.7       92.1       80.3       0.03%  
Baton Rouge Cargo Services Inc. and 2808 Court Street, LLC
2808 Court Street Port Allen LA 70767
    Truck Transportation       Term Loan       Prime plus 2.75%       2/10/2042       247.5       246.6       254.0       0.10%  
Sushiya Inc.
72 S. Main St Hanover
NH 03755
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/10/2027       18.8       18.4       16.4       0.01%  
Maximo Canot dba Wash and Dry Laundrymat 34 Morningside Avenue Yonkers NY 10703     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/10/2042       137.5       137.0       141.6       0.06%  
Select Propane & Fuel Inc. and Select Fuel & Convenience LLC
3822 State Route 3 Red Bud IL 62278
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       2/10/2030       1,250.0       1,237.1       1,141.1       0.46%  
Marvic Enterprises Inc dba Jordan's Liquor 199 Taunton Avenue East Providence RI 02914     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/10/2042       219.0       179.5       188.4       0.08%  
Harrison Logging Company LLC
255 Ray Crain Road Indian Mound TN 37079
    Forestry and Logging       Term Loan       Prime plus 2.75%       2/9/2027       106.3       104.4       94.9       0.04%  
8 Minute Oil Change Auto Repair & Tire Center and Jumir L.L.C. 174-176 Mountain Avenue Springfield NJ 07081     Repair and Maintenance       Term Loan       Prime plus 2.75%       2/7/2042       327.5       326.4       322.3       0.13%  
Christopher Borgia
2537 E. 14th Street Brooklyn
NY 11235
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/6/2027       12.9       12.7       11.1       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

133


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Splashlight LLC, Splashlight Photographic & Digital Studios LLC & Maho 75 Varick Street NY 10013     Management of Companies and Enterprises       Term Loan       Prime plus 2.75%       2/2/2027     $ 750.0     $ 736.9     $ 677.8       0.27%  
DBMS Consulting, Inc.
164 West 83rd St.
Units CF1 and CF2
New York NY 10024
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/1/2042       185.0       184.3       182.1       0.07%  
Brandco, LLC
2151 Consulate Drive Suite 21 Orlando FL 32837
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/31/2027       43.8       42.7       36.8       0.01%  
Chidlren's House Learning, Inc and Tarps Investment Group 720 Wilbraham Road Springfield MA 01109     Social Assistance       Term Loan       Prime plus 2.75%       1/31/2042       321.3       320.0       321.8       0.13%  
Grand Center Inn L.P. dba Grand Center Inn 3716 Grandel Square Saint Louis MO 63108     Accommodation       Term Loan       Prime plus 2.75%       1/31/2027       15.0       14.6       14.9       0.01%  
AP6 LLC and Amishp LLC
82 84 Hemingway Avenue East Haven CT 06512
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2042       127.5       108.5       114.5       0.05%  
Fave Realty, Inc.
1875 Grand Avenue
Baldwin NY 11510
    Real Estate       Term Loan       Prime plus 2.75%       1/30/2042       54.5       54.2       55.2       0.02%  
ZMKNY Tires Inc dba Houston International Tires 12444 Market ST Houston TX 77015     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       1/27/2042       107.5       107.0       112.9       0.05%  
House of Bread & Coffee Corp dba Casa Do Pao 22829 State Road 7 Boca Raton FL 33428     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/27/2042       176.0       136.8       133.6       0.05%  
SRC Publishing LLC
8690 Waterford Bend Street Las Vegas NV 89123
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       1/27/2027       22.5       22.0       18.9       0.01%  
Return to Excellence Inc
176 Country Club Drive Waynesville NC 28786
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       1/27/2027       17.7       17.3       17.6       0.01%  
Sideways Sports Lounge and Jonathan E. McGrew and Patricia C. McGrew 9130 – 9134
W. 88th Ave Westminster
CO 80005
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/23/2027       18.0       17.6       15.1       0.01%  
Fox Valley Rentals & Investments LLC and Brian M Tomaszewski 2906 E. Newberry St. Appleton WI 54915     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/20/2042       42.5       42.3       43.4       0.02%  
Rhone Wolf Vineyard LLC, Goldline Brands Inc. and Myka Cellars, Inc. 5245 Bucks Bar Road Placerville CA 95667     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       1/19/2030       250.4       246.3       228.5       0.09%  
Jolibe LLC and Jolibe Atelier LLC
325 West 38th Street Studio
1704-1706 New York NY 10018
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/18/2027       10.5       10.3       9.1       0.00%  
Eickmann Management Group LLC
dba Jimmy Johns of Dundee 568 Techumseh Street Dundee MI 48131
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/17/2027       93.8       67.8       68.9       0.03%  
Ramjay Inc.
85 S. Bragg Street Suite
303 Alexandria
VA 22312
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       1/13/2027       435.0       426.8       389.2       0.16%  
Fullbro Trust dba Menemsha Blues 2 Basin Road Chilmark MA 02535     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       1/13/2027       22.5       22.0       22.3       0.01%  
Echelon Enterprises, Inc
16701 E. Iliff Avenue Aurora CO 80013
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       1/10/2027       50.0       48.8       49.6       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

134


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Fort Smith Wings Inc. dba Wing Stop 8624 Rogers Ave Fort Smith AR 72903     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/28/2026     $ 19.5     $ 18.9     $ 16.9       0.01%  
Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point 2 Sand Hill Cove Road Narragansett RI 02882     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/27/2041       419.9       417.1       412.4       0.16%  
Joshua L. Baker 1849 Data Drive Hoover AL 35244     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       12/23/2026       15.7       15.3       13.0       0.01%  
Jacliff Investments Inc. dba International health Technologies 2355 South 1070 West Salt Lake City UT 84119     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       12/23/2026       125.0       121.3       103.5       0.04%  
New Image Building Services, Inc. dba The Maids Servicing Oakland &Maco 1405 Combermere Drive Troy MI 48083     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/21/2026       43.8       42.5       37.7       0.02%  
Chestnut Street Associates, LLC and Metropolitan Solutions, Inc. 1420 Chestnut Street Portsmouth VA 23704     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/19/2041       275.0       273.2       262.6       0.10%  
Means Enterprises LLC
dba FastFrame Frisco 4112-4150 Legacy Drive/5729 Leabanon Road Unit 412 Frisco TX 75034
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       12/16/2026       22.5       21.8       18.9       0.01%  
Soon Im. Chin dba Stan C-Store 4014 E Stan Schlueter Loop Killeen TX 76542     Gasoline Stations       Term Loan       Prime plus 2.75%       12/15/2041       212.5       211.1       218.3       0.09%  
Sempco, Inc.
51-55 Lake Street Unit
#2-6 Nashua NH 03060
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       12/15/2041       42.0       41.7       43.9       0.02%  
Allied Welding Inc.
1820 N. Santa
Fe Avenue Chillicothe IL 61523
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/15/2041       750.0       745.9       733.4       0.29%  
Ericon, Inc. dba Quik Pik 740 Davenport Avenue Freemont NE 68025     Gasoline Stations       Term Loan       Prime plus 2.75%       12/15/2041       332.2       330.6       329.4       0.13%  
White Hawk Inc.
2101 Dr. Martin
Luther King Jr. Blvd Stockton CA 95205
    Truck Transportation       Term Loan       Prime plus 2.75%       12/15/2026       1,097.7       1,066.9       910.7       0.36%  
Elita 7, LLC
16 Marble Street Worcester MA 01603
    Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       12/15/2041       712.5       707.8       721.3       0.29%  
New Chicago Wholesale Bakery, Inc. 795 Touhy Avenue Elk Grove Village IL 60007     Food Manufacturing       Term Loan       Prime plus 2.75%       12/15/2041       452.8       449.8       444.2       0.18%  
Techni-Pro Institute LLC
414 NW 35th Street Boca Raton FL 33431
    Educational Services       Term Loan       Prime plus 2.75%       12/15/2026       190.0       184.3       162.2       0.06%  
Trison Enterprises Inc. dba Lee's Automotive 13281 Aurora Avenue N Seattle WA 98311     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/14/2041       407.5       404.8       409.1       0.16%  
Cardinal Homes Inc. and Bret A Berneche 525 Barnesville Highway Wylliesburg VA 23976     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       12/14/2041       121.3       120.4       126.3       0.05%  
D and E Hardware Co. and D and E Pump Sales and Servi 2800 North US 1 Mims FL 32754     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       12/14/2041       528.6       525.1       522.1       0.21%  
HMG Strategy, LLC
191 Post Road West Westport CT 06880
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/14/2026       50.0       48.5       41.4       0.02%  
AGG Management Team LLC dba Chevron 2615 S Dixie Highway West Palm Beach FL 33401     Gasoline Stations       Term Loan       Prime plus 2.75%       12/14/2041       287.5       285.6       300.4       0.12%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

135


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Cardinal Homes Inc,.
Alouette Holdings Inc.,
Bret Berneche &, orothy
M 525 Barnsville Highway Wylliesburg VA 23976
    Wood Product Manufacturing       Term Loan       Prime plus 2.75%       12/14/2026     $ 1,071.3     $ 1,039.3     $ 1,052.7       0.42%  
Wayfarer Bicycle LLC
118-120 Ocean Avenue New London CT 06320
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       12/13/2041       92.5       91.9       89.5       0.04%  
Success Advertising Inc. dba Success Communivstion Gr 26 Eastmans Road Parsippany NJ 07054     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/13/2041       466.5       463.4       480.1       0.19%  
Roast Beef Levittown LLC
dba Arby's 2080 Hempstead Turnpike East Meadow NY 11554
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/13/2026       465.0       456.6       462.5       0.18%  
Queen Express LLC
115 S. Church Lane Tappahannock VA 22560
    Gasoline Stations       Term Loan       Prime plus 2.75%       12/13/2041       187.5       186.3       193.1       0.08%  
Mack Team Enterprises Inc. dba The UPS Store
#6815 38200 Avenue of the States Fort Gordon GA 30905
    Couriers and Messengers       Term Loan       Prime plus 2.75%       12/9/2026       20.4       19.8       17.8       0.01%  
Recycling Revolution, LLC
4190 Collins Road Unadilla GA 31091
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/9/2041       92.2       91.6       91.0       0.04%  
Myndshft Technologies LLC
3440 Gannett Avenue Des Moines IA 50321
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/9/2026       775.0       751.9       714.6       0.29%  
New Life Hospital LLC
17400 Red Oak Drive Houston TX 77090
    Hospitals       Term Loan       Prime plus 2.75%       12/8/2041       1,195.5       1,187.6       1,249.3       0.50%  
Imagine By Carleen Inc.
1404 Del Prado Blvd.
Units 100 & 105 Cape Coral
FL 33990
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/8/2041       52.5       52.2       53.7       0.02%  
Hanson's Greeks LLC
8132 N. 87th Place, Ste A Scottsdale AZ 85258
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/8/2026       11.3       10.9       11.1       0.00%  
Yachting Solutions LLC
229 Commercial Street Rockport ME 04856
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       12/7/2029       71.3       69.8       66.5       0.03%  
T and B Boots Inc
dba Takken's Shoes
72 South Main Street Templeton
CA 93465
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       12/7/2026       100.0       98.4       91.9       0.04%  
Lan Doctors, Inc.
14 Pierson Court
Mahwah NJ 07430
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/7/2026       237.5       230.4       225.8       0.09%  
Lilo Holdings LLC
933 Port Reading Ave Port Reading NJ 07064
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/5/2026       15.9       15.4       14.0       0.01%  
The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites 29291 Amerihost Drive Dowagiac MI 49047     Accommodation       Term Loan       Prime plus 2.75%       12/5/2041       352.5       350.6       361.6       0.14%  
Transmission Solutions Group, Inc. and Calhoun Satellite Communicatio 1007 1>Telecommunications     Term Loan       Prime plus 2.75%       12/2/2041       141.3       141.3       131.7       0.05%  
Calhoun Satellite Communications, Inc.
1914 Tigertail Boulevard Dania Beach FL 33004
    Telecommunications       Term Loan       Prime plus 2.75%       12/2/2026       192.5       189.1       169.1       0.07%  
Noso Development LLC
4 Walker Way Albany
NY 12205
    Construction of Buildings       Term Loan       Prime plus 2.75%       12/1/2026       75.0       72.8       62.1       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

136


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Ericon, Inc.
740 Davenport Avenue Fremont NE 68025
    Gasoline Stations       Term Loan       Prime plus 2.75%       12/1/2041     $ 726.1     $ 722.5     $ 723.9       0.29%  
B4 Fitness LLC
dba The Zoo Health Club 4 Beehive Dr Epping NH 03042
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/30/2026       22.5       21.7       19.3       0.01%  
RD Management, LLC
2302 N. Kings Hwy Myrtle Beach SC 29572
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2026       213.7       206.0       178.1       0.07%  
Imaginarium Foods LLC,
751 N. Cable Road Lima OH 45805
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2042       376.7       371.8       377.6       0.15%  
Pebble Wood Lane, LLC
and Good Sam's Assisted Living Resiidence, LLC
1 Pebble Wood Lane Palm Coast FL 32164
    Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       11/30/2041       67.5       67.0       70.4       0.03%  
Sharaz Shah DBA Thomas Jewelers 714 Greenville Boulevard, Southeast Suite 0043 Greenville NC 27858     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       11/30/2026       8.1       7.8       6.7       0.00%  
Choe Trading Group, Inc. dba Rapid Printers of Monterey 201 Foam Street Monterey CA 93940     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       11/30/2026       22.5       21.7       21.3       0.01%  
Studio Find It Georgia, Inc. 1415 Constitution Road SE Atlanta GA 30316     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/30/2026       7.5       7.2       6.3       0.00%  
Quick Ship, LLC
448 W. 19th St Houston TX 77008
    Couriers and Messengers       Term Loan       Prime plus 2.75%       11/30/2026       10.5       10.1       8.6       0.00%  
Usman Jalil, LLC
dba Food Mart 147 N Washington Street Plainville CT 06062
    Gasoline Stations       Term Loan       Prime plus 2.75%       11/29/2041       233.3       231.4       224.4       0.09%  
Honor Mansion, Inc.
891;893; Grove Street Healdsburg CA 95448
    Accommodation       Term Loan       Prime plus 2.75%       11/29/2026       87.5       84.3       85.4       0.03%  
Access Staffing, LLC
360 Lexington Avenue 8th Floor New York NY 10017
    Administrative and Support Services       Term Loan       Prime plus 2.75%       11/29/2026       1,125.0       1,084.4       925.7       0.37%  
CRK Mens, LLC
dba Spiff for Men 750 Third Ave New York NY 10017
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/23/2026       106.3       102.5       89.4       0.04%  
Merchant Coterie, Inc.
400 East 52nd Street Apt.
14F New York NY 10022
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       11/23/2026       125.0       120.5       102.9       0.04%  
WPN Recycling Company LLC
5101 Andard Ave Baltimore MD 21226
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       11/23/2026       22.5       21.7       22.0       0.01%  
Hafa Adai Signs and Graphics LLC
dba Fastsigns of Auburn-#281901 1835 Auburn Way N Suite B Auburn WA 98002
    Administrative and Support Services       Term Loan       Prime plus 2.75%       11/23/2026       60.0       57.8       50.0       0.02%  
Broms Asset Management LLC
215 East 79th Street Apt 9E New York NY 10075
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       11/22/2026       125.0       120.5       102.9       0.04%  
Rognes Corp
dba RTS 720 SW Goodwin Street Ankeny IA 50023
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       11/22/2026       389.3       373.8       341.7       0.14%  
Bouquet Restaurant LLC
519 Main Street Covington KY 41011
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/22/2041       125.0       124.0       125.6       0.05%  
J.B.K Truck Trailer and Bus Inc 8669 S. State Road 67 Camby IN 46113     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/22/2041       435.0       431.5       430.2       0.17%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

137


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
6E Technologies LLC
11001 West 120th Avenue, Suite 400 Broomfield
CO 80020
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/22/2026     $ 175.0     $ 167.7     $ 154.3       0.06%  
Skaggs RV Outlet LLC
301 Commerce Drive Elizabethtown KY 42701
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       11/21/2026       100.0       96.4       97.6       0.04%  
Catherine Christine Morin dba Purr-Fect Pets 1915 North Austin Avenue Georgetown TX 78626     Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/17/2026       18.7       18.1       15.4       0.01%  
Stratmar Systems Inc
dba Stratmar Retail Services 109 Willett Avenue Port Chester NY 10573
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/16/2026       68.5       66.0       66.9       0.03%  
Hoosier Health Plus, LLC
520 East 8th Street Anderson IN 46012
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/15/2026       125.0       120.5       113.4       0.05%  
J. A. Kohlhepp Sons, Inc.
dba Kohlhepp's True Value 640 Dubois Street Dubois PA 15801
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/10/2041       446.0       442.4       452.9       0.18%  
Hackensack Steel Corporation and Luzerne Ironworks Inc
300 Sly Street Swoyersville PA 18709
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/10/2026       239.2       230.6       232.7       0.09%  
Panther Ironworks and Rigging Solutions LLC
1028 Washburn Switch Road Shelby NC 28150
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/10/2026       151.2       145.8       133.6       0.05%  
J. A. Kohlhepp Sons, Inc.
dba Kohlhepp's True Value 640 Dubois Street Du Bois PA 15801
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/10/2026       188.7       181.9       179.9       0.07%  
MIK LLC
dba Firehouse Subs 17250 Royalton Rd Strongsville OH 44136
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/9/2026       200.0       196.4       169.9       0.07%  
Rich's Food Stores LLC
dba Hwy 55 of Wallace 611 East Southerland Street Wallace NC 28466
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/9/2026       43.7       42.2       39.3       0.02%  
Bovill Creative, LLC
4590 Columbia Pike Thompsons Stations TN 37179
    Real Estate       Term Loan       Prime plus 2.75%       11/9/2041       281.2       279.1       293.6       0.12%  
Dyer Properties, LLC
(and Bayview Pharmacy, Inc.
3844 Post Road Warwick RI 02886
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       11/9/2041       240.3       238.3       235.3       0.09%  
Big Apple Entertainment Partners LLC
1221 Brickell Avenue, Suite 2660 Miami FL 33131
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/9/2026       175.0       168.7       144.0       0.06%  
Surgarloaf Concepts LLC
dba Fat Biscuit 600 Market Street, Suite 335 Lynnfield MA 01940
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/8/2026       168.8       167.8       170.0       0.07%  
Fine Line Interiors, Inc.
2530 SW 30th Avenue Hallandale Beach FL 33009
    Repair and Maintenance       Term Loan       Prime plus 2.75%       11/4/2041       87.5       84.3       88.6       0.04%  
131 Miles LLC and Ohm Shubh Laxmi, LLC.
dba Mr Hero 13215 Miles Avenue Cleveland OH 44105
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/3/2041       127.5       87.2       91.8       0.04%  
Veracruz Shabo, LLC Waterfalls Quick Lube LLC
1325 Broad Street Central Falls RI 02863
    Repair and Maintenance       Term Loan       Prime plus 2.75%       11/1/2041       118.7       118.3       120.8       0.05%  
Glocecol LLC
10302 NW South River Drive, Bay #23 Miami FL 33178
    Administrative and Support Services       Term Loan       Prime plus 2.75%       11/1/2026       75.0       72.3       73.2       0.03%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

138


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Bloomquist Communications Inc.
131 East Trinity Place Decatur GA 30030
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2026     $ 60.0     $ 57.5     $ 49.0       0.02%  
Moolchan Enterprises LLC
dba Staying Green 5370 State Rd 84 Bay 3 Davie FL 33314
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2026       18.1       17.4       16.4       0.01%  
Middlesex Auto Sales Corp
799 Godham Street Lowell MA 01852
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       10/31/2041       125.0       124.0       126.9       0.05%  
Woodstock Enterprises Corp
dba True Scent Candle Co
191 2nd Avenue Warwick RI 02888
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       10/31/2041       88.8       87.9       85.6       0.03%  
Patina Investment, Inc and Ram & Sons, Inc.
806-808; 810-818; 820-826 NW 10th Terrace Blvd. Fort Lauderdale FL 33311
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/27/2041       175.0       173.3       182.3       0.07%  
FibAire Communications, LLC
13590 South Sunland Gin Road Suite E Arizona City AZ 85123
    Telecommunications       Term Loan       Prime plus 2.75%       10/27/2026       107.5       102.9       94.5       0.04%  
Elite Structures Inc
401 Old Quitman Road Abel GA 31620
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/27/2029       225.0       220.9       215.1       0.09%  
Bonita Stone LLC and Castone Creations Inc
8309 NW 70th Street Miami FL 33166
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       10/25/2041       264.4       261.9       260.8       0.10%  
Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc.
172 Lynhurst Ave Staten Island NY 10305
    Nonstore Retailers       Term Loan       Prime plus 2.75%       10/25/2026       131.2       125.7       127.3       0.05%  
Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC
200 North Branford Road Branford CT 06405
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       10/24/2026       425.0       407.0       405.4       0.16%  
Worldwide Estate, Inc.
dba Washington Heights Manor 10620 W. Greenwood Terrace Milwaukee WI 53224
    Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       10/21/2041       225.0       222.4       234.0       0.09%  
Eco Vehicle Systems LLC
1274 South State Road 32 Union City IN 47390
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       10/21/2026       955.5       916.4       916.5       0.37%  
Gold Wind Logistics LLC
2830 Beech Daly Rd Inkster MI 48141
    Truck Transportation       Term Loan       Prime plus 2.75%       10/20/2041       175.0       173.4       182.4       0.07%  
Speaker City, Inc.
dba Rollin Thunder 246 East Belt Boulevard Richmond VA 23224
    Electronics and Appliance Stores       Term Loan       Prime plus 2.75%       10/14/2041       125.0       123.8       126.1       0.05%  
Maine Service Corp
59-22 55th Street Maspeth NY 11378
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       10/13/2026       206.2       197.7       185.2       0.07%  
Justin Partlow 8411 Preston Road, Suite 700 Dallas TX 75225     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       10/13/2026       19.5       18.7       15.9       0.01%  
Reliable Recovery Services LLC
2401 West Mcdowell Road Phoenix AZ 85009
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       10/7/2026       112.5       107.7       98.1       0.04%  
Ailky Corporation
352 Beford Street Lakeville MA 02347
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       10/3/2026       250.0       239.4       210.0       0.08%  
Wyspen Corporation
dba Charlestown Ace 5 Austin Street Charlestown MA 02129
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       10/3/2026       36.0       34.5       29.4       0.01%  
MegaPhase, LLC
122 Banner Road Stroudsburg PA 18360
    Computer and Electronic Product Manufacturing       Term Loan       Prime plus 2.75%       9/30/2026       150.0       142.7       137.6       0.05%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

139


 
 

TABLE OF CONTENTS

               
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 415-417 Halsey Drive Newark NJ 07102
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2041     $ 137.5     $ 136.0     $ 142.9       0.06%  
JJA Transportation Management Inc.
15 Church Street Upland PA 19015
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2026       52.5       49.9       42.6       0.02%  
Adelwerth Bus Corp.
423 Montauk Highway Eastport NY 11941
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2041       242.8       240.3       238.1       0.10%  
Adelwerth Bus Corporation, Transportation Leasing Corp. and dba Transp 423 Montauk Highway Eastport NY 11941     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2029       654.0       632.7       609.3       0.24%  
Las Casuelas Del Este Inc.
78-480 Hwy 111 La Quinta CA 92253
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/29/2041       800.0       792.0       815.6       0.33%  
Vision Automotive LLC
dba Vision Chrysler Jeep Dodge Ram of Defiance 20390 County RD 424 Defiance OH 43512
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/29/2029       671.5       648.8       607.9       0.24%  
Thunderdome Racing Inc.
190 Nicks Road Norwood NC 28128
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/29/2026       19.0       18.1       17.9       0.01%  
Graphics, Type and Color Enterprises Inc dba Clubflyers.com and GTC Med 2300 NW 7th Avenue Miami FL 33127     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       9/28/2041       850.0       840.4       883.7       0.35%  
Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Serv 412 and 500 Main Street La Marque TX 77568     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       9/28/2041       405.8       401.2       383.7       0.15%  
Paragon Fabricators Inc,
Paragon Field Services, Inc and
Paragon Globa 412 and
500 Main Street La Marque
TX 77568
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       9/28/2026       648.0       616.3       567.1       0.23%  
Beadon Inc
2601 Old Ocean City Rd Salisbury MD 21804
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/28/2026       22.5       21.4       21.4       0.01%  
CNC Precision Machine, Inc.
18360 Industrial Circle Burton OH 44021
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/28/2041       1,250.0       1,235.9       1,236.9       0.49%  
CD Game Exchange Inc.
3719 N Mississippi Portland OR 97227
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/28/2026       22.5       21.4       18.3       0.01%  
Kyle M Walker DDS, PC
1402 West Park Avenue Orange TX 77630
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/27/2026       217.8       207.4       182.6       0.07%  
Reynolds Fence & Guardrail Inc.
9320 Machado Drive Indian Trail NC 28079
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       9/27/2026       629.5       598.8       578.8       0.23%  
Luv 2 Play Nor Call, LLC
dba Luv 2 Play 82 Clarksville Road Folsom CA 95630
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/27/2026       52.5       49.9       44.7       0.02%  
Luna Nueva LLC
dba Bio Builders 51467 Blue River Dr. Vida OR 97488
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/27/2026       15.0       14.3       12.6       0.01%  
Sarah S Olelewe MD Inc
11704 1>Ambulatory Health Care Services
    Term Loan       Prime plus 2.75%       9/26/2041       292.4       289.7       290.7       0.12%  
TPFC, LLC
dba The Picture Frame Company 5957 Glenway Avenue Cincinnati OH 45238
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/26/2041       58.8       58.1       58.4       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

140


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Ridge Road Equestrian LLC
dba Ricochet Ridge Ranch 24201 North Highway 1 Fort Bragg CA 95437
    Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       9/26/2026     $ 9.0     $ 8.6     $ 8.4       0.00%  
PeopleBest Inc.
19442 Mesa Drive Villa Park CA 92861
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/26/2026       15.0       14.3       12.2       0.00%  
B4 Fitness LLC
dba The Zoo Health Club 4 Beehive Dr Epping NH 03042
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/23/2026       87.5       83.2       74.1       0.03%  
Mr. Mulch, Inc
2721 Dublin Granville Road Columbus OH 43235
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       9/23/2041       405.8       401.2       377.0       0.15%  
InformationTelevision Network Inc
6650 Park of Commerce Blvd Boca Raton FL 33487
    Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       9/22/2041       836.7       831.8       864.6       0.35%  
GRA Financial Services Inc
601 McCray Street, Suite 204 Hollister CA 95023
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/22/2026       12.0       11.4       9.7       0.00%  
Wrecking Crew Media LLC
800 Penn Aveune 3rd Floor Pittsburgh PA 15222
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       9/21/2026       50.0       47.6       40.6       0.02%  
Cuppiecakes LLC
402 W. 3rd Street #A McGregor TX 76657
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/21/2041       22.5       22.2       22.3       0.01%  
Benoit's Towing and Recovery LLC 301 Tabor Rd Swanton VT 05488     Support Activities for Transportation       Term Loan       Prime plus 2.75%       9/20/2026       12.0       11.4       9.9       0.00%  
Consulting Solutions Inc. and Mark Luciani 3000 N Federal Hwy 1-1A Fort Lauderdale FL 33306     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/20/2026       22.5       21.4       20.2       0.01%  
Brittany Burns LLC
dba Dreams Come True 101 Plaza Real South Suite G Boca Raton FL 33432
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/19/2026       12.9       12.3       12.4       0.00%  
Eyncon LLC
117N Dallas Street Ennis TX 75119
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/16/2041       50.0       49.4       50.1       0.02%  
Tresa S.Parris dba Wagging Tails Grooming 21207 Highway 22 Mckenzie TN 38201     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/16/2026       8.0       7.6       6.5       0.00%  
The Merrin Group LLC
151 W 46th ST New York NY 10036
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/15/2026       175.0       166.4       159.9       0.06%  
Rich's Food Stores LLC
dba Hwy 55 of Wallace 611 East Southerland Street Wallace NC 28466
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/14/2026       145.5       138.6       129.1       0.05%  
Atlantic Alarm Systems and Services LLC
165 Amboy Road, Building G, Suite 703 Morganville NJ 07734
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/14/2026       15.4       14.7       13.0       0.01%  
Metropet Dog Center, Inc
2057 West Shore Road Warwick RI 02889
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/13/2041       109.3       108.0       109.8       0.04%  
Marquis Cattle Company
805 US Hwy 87 Belt
MT 59412
    Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       9/13/2026       50.0       48.0       48.6       0.02%  
Bingham Enterprises, Inc and Full Belli Deli and Sausage Company
209 South Front Street Townsend MT 59644
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/12/2041       82.5       81.6       79.9       0.03%  
Artisan Infrastructure Holdings, LLC
11612 Bee Cave Road, Suite 125 Austin TX 78738
    Data Processing, Hosting, and Related Services       Term Loan       Prime plus 2.75%       9/7/2026       125.0       118.9       101.4       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

141


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
SRA Mechanicial Inc
1186 Ocean Avenue Bayshore NY 11706
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/6/2041     $ 43.7     $ 43.3     $ 45.3       0.02%  
Sandia Enterprises Inc
dba Massage Envy Spa 9139 W Stockton Blvd Suite 100 Elk Grove CA 95758
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/6/2026       62.5       59.4       50.7       0.02%  
Animal Intrusion Prevention Systems Holding Company, LLC
dba Critter C 1362-1366 W. Carrier Parkway Grand Prairie TX 75050
    Administrative and Support Services       Term Loan       Prime plus 2.75%       8/30/2026       125.0       118.4       103.7       0.04%  
Suncrest Stone Products LLC
341 County Farm Road Ashburn GA 31714
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2026       586.7       554.3       496.9       0.20%  
Clark Realty LLC
4 Walker Way Albany
NY 12205
    Real Estate       Term Loan       Prime plus 2.75%       8/29/2041       237.5       234.5       225.8       0.09%  
Raem Corporation
dba Dryclean Express 557 West Whitney Road Fairport NY 14450
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       8/29/2041       72.5       71.6       74.3       0.03%  
Suncrest Stone Products LLC
341 County Farm Road Ashburn GA 31714
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2041       649.6       641.4       598.6       0.24%  
TAGR Inc
dba Miami Grill 137 and John Nakis 1505 S. Federal Highway Dania Beach FL 33004
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/26/2026       106.8       100.9       88.4       0.04%  
Warren Dale Warrington dba Custom Paint and Body 705 S Market Avenue Fort Pierce FL 34982     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/26/2041       101.3       100.0       102.2       0.04%  
Albert Basse Associates Inc
175 Campanelli Parkway Stoughton MA 02072
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       8/25/2026       62.5       59.0       59.5       0.02%  
Dean Technology Inc
4117 Billy Mitchell Drive Addison TX 75001
    Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       8/25/2041       387.1       382.2       398.8       0.16%  
Rosmel Pools Inc
9300 NW 25th Street Suite 103 Miami FL 33172
    Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026       22.5       21.3       18.6       0.01%  
Avery Management Inc.
dba Whetstone Upholstery 1122 N Bloulevard Richmond
VA 23230
    Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026       10.7       10.1       8.6       0.00%  
Tabadesa Associates Inc.
419 W 49th St. Suite 111 Hialeah FL 33012
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/25/2026       22.5       21.3       18.1       0.01%  
TR Companies LLC
dba True Value Rental and Liberty Rental 4 U 410 N Church Road Liberty MO 64068
    Rental and Leasing Services       Term Loan       Prime plus 2.75%       8/25/2026       90.0       85.0       72.5       0.03%  
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
726-740 South Fleming Street Sebastian FL 32958
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/24/2041       500.0       493.2       514.7       0.21%  
Tim's Tire & Automotive Center, LLC
1213 Washington Road Thomson GA 30824
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       8/16/2026       816.6       768.3       697.7       0.28%  
Luv 2 Play Temecula, LLC
26469 Ynez Road Temecula CA 92591
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       8/15/2026       60.0       56.7       48.3       0.02%  
Bear Creek Entertainment LLC
dba The Woods at Bear Creek 3510 Bear Creek Road Franklinville NY 14737
    Accommodation       Term Loan       Prime plus 2.75%       8/12/2041       437.5       279.1       288.1       0.12%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

142


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
2 Cool Beans LLC
dba Menchies's Frozen Yogurt 11331 Thienes Avenue South El Monte CA 91733
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/11/2026     $ 82.5     $ 77.9     $ 66.5       0.03%  
Grayson O Company
6509 Newell Avenue Kannapolis NC 28082
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/10/2041       625.0       617.1       643.7       0.26%  
Charal Investments LLC
dba Orange Theory Fitness 2750 Celanese Road Rock Hill SC 29732
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       8/10/2026       87.5       82.7       70.5       0.03%  
PCNKC Inc
dba Plato's Closet 8407 N Mercier Ave Kansas City MO 64155
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       8/10/2026       18.7       17.8       15.6       0.01%  
Paul Belanger dba Paul Belanger Landscaping 2595 Military Ave Los Angeles CA 90064     Administrative and Support Services       Term Loan       Prime plus 2.75%       8/9/2026       15.0       14.2       12.1       0.00%  
303 Tower Drive LLC
303 Tower Drive, Suite A Middletown NY 10941
    Repair and Maintenance       Term Loan       Prime plus 2.75%       7/29/2041       400.2       394.6       405.7       0.16%  
Little Tree Huggers Child Care LLC
38620 9 Mile Road Farmington Hills MI 48335
    Social Assistance       Term Loan       Prime plus 2.75%       7/29/2041       140.0       138.0       144.8       0.06%  
The Hungry Rhino LLC
47 South Main Street Windsor Locks CT 06096
    Real Estate       Term Loan       Prime plus 2.75%       7/29/2041       76.2       75.2       75.3       0.03%  
Nicolette Reiser dba Comfort & Balance 93 Main St. Woodbridge NJ 07095     Personal and Laundry Services       Term Loan       Prime plus 2.75%       7/29/2041       75.0       73.9       75.5       0.03%  
USA General Investment LLC
dba Braniff Paint and Body Shop 2290 NW 21st Terrace Miami FL 33142
    Repair and Maintenance       Term Loan       Prime plus 2.75%       7/29/2026       22.5       21.1       18.6       0.01%  
676 Club LP dba The Green Door Tavern/The Drifter 676 and 678 North Orleans ST Chicago IL 60654     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/28/2041       670.0       660.5       685.1       0.27%  
KJCKD Inc
dba Camelot Print & Copy Centers/Copy A Second 630 Columbia Street Extension Colonie NY 12110
    Administrative and Support Services       Term Loan       Prime plus 2.75%       7/28/2041       587.0       578.7       581.9       0.23%  
MacIver Corporation
dba Division Camera 7022 W Sunset Blvd Hollywood CA 90028
    Rental and Leasing Services       Term Loan       Prime plus 2.75%       7/28/2026       1,250.0       1,173.0       1,106.8       0.44%  
J And G Group Services LLC and United Vending of Florida Inc and John 9102 NW 106th Street Medley FL 33178     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       7/28/2026       31.5       29.6       26.5       0.01%  
Apple Tree NC Inc
dba Williams Farm & Garden Center 1309 Old Cherry Point Road New Bern NC 28560
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       7/28/2041       337.0       332.2       329.3       0.13%  
Intrepid Trinity LLC
680 Douglas Ave Providence RI 02908
    Nonstore Retailers       Term Loan       Prime plus 2.75%       7/28/2041       62.5       61.6       62.7       0.03%  
Big Apple Entertainment Partners LLC
dba Ripley's Believe It or Not 1221 Brickell Ave, Suite 2660 Miami FL 33131
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       7/28/2026       300.0       281.5       240.1       0.10%  
Kidtastic LLC
dba The Little Gym of Audubon 2850 Audubon Drive Audubon PA 19403
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       7/27/2026       53.7       52.8       45.0       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

143


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
GF Libations Inc
dba Minuteman Press 277 S Rancho Santa Fe Rd San Marcos CA 92078
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       7/27/2041     $ 40.5     $ 39.0     $ 34.7       0.01%  
EPEC Juice LLC
dba Jamba Juice 810 Ninth Street, Suite 128 Durham NC 27705
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/27/2026       82.5       78.4       66.8       0.03%  
Peckett's Inc
5643 Round Lake Road Apopka FL 32712
    Crop Production       Term Loan       Prime plus 2.75%       7/27/2041       225.0       223.4       234.8       0.09%  
Pinco Pizza LLC
dba Jet's Pizza 10845 N. Tatum Blvd Ste A 100 Phoenix AZ 85028
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/27/2026       72.9       69.3       68.3       0.03%  
JAG Unit 1, LLC
dba Arooga's Grille House and Sports Bar 1 West Main Street Patchogue NY 11772
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/27/2026       125.0       117.3       100.0       0.04%  
The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC 314 Wilson Avenue Norwalk CT 06854     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       7/26/2026       91.0       85.5       78.2       0.03%  
Gino Italian American Deli and Meat Market Inc
5729 Johnson St Hollywood FL 33021
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       7/25/2041       536.8       530.2       528.1       0.21%  
My Sainath Inc
dba Motel 6 1008 E Crest Drive Waco TX 76705
    Accommodation       Term Loan       Prime plus 2.75%       7/22/2041       305.4       301.1       310.4       0.12%  
Robert G Larson State Farm Insurance 7922 Jamaica Avenue Woodhaven NY 11421     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       7/22/2026       22.5       21.1       18.0       0.01%  
J and D Resources LLC
dba Aqua Science 1923 E 5th St Tempe AZ 85281
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2026       130.5       122.5       105.6       0.04%  
Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Sho 1502 Highway 157 Mansfield TX 76063     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       7/18/2026       15.8       14.8       12.6       0.01%  
Franklin Firm LLC
dba Luv 2 Play 1310 East Stan Schleuter Loop Killeen TX 76542
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       7/15/2041       173.3       171.4       172.5       0.07%  
Billingsworks LLC
dba Spoon Shine Cafe 110 Chestatee St. Dahlonega GA 30533
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/15/2026       9.7       9.1       9.2       0.00%  
Be Beautiful LLC
376 Silas Deane Hwy Wethersfield CT 06109
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       7/14/2041       66.5       65.6       67.6       0.03%  
Takeuchi Commercial Cleaning Services, LLC
dba We Clean San Diego 1835A S. Centre City Pkwy Escondido CA 92025
    Administrative and Support Services       Term Loan       Prime plus 2.75%       7/13/2026       46.3       43.4       37.0       0.01%  
Jacob Rugs LLC
dba Rugs Outlet 32879 US Hwy 27 Haines City FL 33844
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       7/13/2026       65.6       61.6       62.3       0.02%  
RM Hawkins LLC
dba Pure Water Tech West 5140 Topaz Drive Colorado Springs CO 80918
    Nonstore Retailers       Term Loan       Prime plus 2.75%       7/7/2026       50.0       47.0       45.0       0.02%  
Dino Smiles Children's Cosmetic Dentistry 1128 Commerce Ave, Suite C Atwater CA 95301     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       7/7/2026       14.3       13.4       11.8       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

144


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Nevey's LLC
dba Stark Food III 6315 W. Fond Du Lac Avenue Milwaukee WI 53218
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/30/2041     $ 293.9     $ 290.3     $ 297.8       0.12%  
Soregard Inc
605 Birch Drive Maquoketa IA 52060
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       6/30/2041       278.8       274.4       263.2       0.11%  
Martin Inventory Management LLC
304 1/2 Main Street Edgefield SC 29824
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/30/2026       105.8       98.6       99.7       0.04%  
P L H Pharmaco Inc
dba Farmacia San Jose 149 48th Street Union City NJ 07087
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       6/30/2026       175.0       163.0       161.2       0.06%  
Desert Tacos LLC
245 East Bell Road Suite A-2 Phoenix AZ 85022
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2026       98.7       94.5       89.0       0.04%  
VMA Technologies LLC
120 South Serenata Drive Unit 332 Ponte Vedra Beach FL 32082
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/30/2026       22.5       21.0       17.9       0.01%  
Corning Lumber Company Inc and Frank R Close and Son Inc dba Close Pai 1314 Sixth Street Orland CA 95963     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       6/30/2029       195.5       186.3       190.2       0.08%  
Castone Creations Inc
7850 NW 32nd Street, Unit D Doral FL 33122
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       6/29/2026       87.5       81.5       72.7       0.03%  
Ninsa LLC
125 Lincoln Street Hammonton NJ 08037
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2041       112.5       110.7       116.4       0.05%  
O.D.S. Inc
dba Four Seasons Health & Racquet and Step 'N' Motion, Inc 626 Delsea Drive N Glassboro NJ 08028
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/29/2026       140.0       130.5       114.3       0.05%  
WGI, LLC
dba Williams Grant Inn
154 High Street Bristol
RI 02809
    Accommodation       Term Loan       Prime plus 2.75%       6/29/2041       131.2       129.2       130.1       0.05%  
KWG Industries, LLC
dba Peterson & Marsh Metal Industries 330 Roycefield Road, Unit B Hillsborough NJ 08844
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       6/29/2041       304.5       300.2       307.0       0.12%  
E & P Holdings 1 LLC and
Evans & Paul LLC
140 Dupont St Plainview NY 11803
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       6/28/2026       125.0       116.7       103.0       0.04%  
MaidPro Marin dba MaidPro 98 Jewell Street San Rafael CA 94901     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/28/2026       17.6       16.4       13.9       0.01%  
Edge Pest Control LLC
5815 West 6th Avenue, 2D Lakewood CO 80214
    Administrative and Support Services       Term Loan       Prime plus 2.75%       6/27/2026       750.0       699.0       595.6       0.24%  
All Printing Solutions, Inc.
dba Pryntcomm 303 E. Sioux Ave. Pierre SD 57501
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       6/27/2041       545.6       537.7       519.8       0.21%  
Island Time Investments, LLC
dba Swantown Inn Bed & Breakfast 1431 11th Ave SE Olympia WA 98501
    Accommodation       Term Loan       Prime plus 2.75%       6/24/2041       101.2       99.7       104.7       0.04%  
Jumbomarkets Inc
dba Rines Jumbomarkets 15500 SW Trail Drive Indiantown FL 34956
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/24/2026       50.0       46.6       39.7       0.02%  
El Basha Inc
dba RPM West San Fernando Valley 2100 Devonshire Street, Suite 200 Chatsworth
CA 91311
    Real Estate       Term Loan       Prime plus 2.75%       6/24/2026       22.5       18.8       16.0       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

145


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Yellow Cab Company of Kissimmee Inc
722 E Donegan Avenue Kissimmee FL 34744
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       6/24/2041     $ 56.8     $ 55.9     $ 53.8       0.02%  
Visual Advantage LLC
dba Signs Now Perryberg 23248 Dunbridge Road Perrysburg OH 43443
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/23/2041       91.2       89.8       89.6       0.04%  
Long Island Comedy LLC
dba Governors and New York Comedy, LLC 90 A Division Avenue Levittown NY 11756
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/23/2041       187.5       184.6       186.3       0.07%  
Shooting Sports Academy LLC and Jetaa LLC
dba Shooting Sports Academy 27 Main Street Monroe
CT 06468
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/23/2041       494.7       490.5       480.6       0.19%  
SNS of Central Alabama, LLC
dba Steak N Shake dba Steak N Shake Bigl 180 Inverness Plaza Birmingham AL 35242
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/21/2026       57.5       53.6       48.8       0.02%  
Italian Heritage Tile and Stone Inc
5420 Ygnacio Valley Road Ste 40 Concord CA 94521
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/20/2026       62.5       58.2       49.6       0.02%  
Evergreen Investment & Property Management LLC, Universal Kidney Cente 2800 N. State Road 7 Margate FL 33063     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/20/2041       1,250.0       1,234.6       1,275.4       0.51%  
Bagelicious, LLC
945 S Main St Cheshire CT 06410
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/17/2026       54.5       50.8       43.6       0.02%  
T and B Boots Inc
dba Takken's Shoes 72 South Main Street Templeton CA 93465
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       6/17/2026       225.0       212.8       214.4       0.09%  
Winegirl Wines LLC
222 E Wapato Way Manson WA 98831
    Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       6/16/2026       11.3       10.5       10.6       0.00%  
NKJ Lusby Donuts LLC
174 Village Center Drive Lusby MD 20657
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/16/2026       22.5       21.0       17.9       0.01%  
Blue Eagle Transport Inc,
Greeneagle Transport Inc and Golden Eagle Tr 377 Boston Post Road Milford CT 06460
    Couriers and Messengers       Term Loan       Prime plus 2.75%       6/16/2026       583.0       538.5       458.8       0.18%  
Jai-Alexia Consulting, Inc.
14660 Paddock Drive Wellington FL 33414
    Couriers and Messengers       Term Loan       Prime plus 2.75%       6/15/2026       11.8       11.0       9.4       0.00%  
Pumpkin Patch Child Care of Southington, LLC and
Giuseppe Pugliares 1137 West Street Southington CT 06489
    Social Assistance       Term Loan       Prime plus 2%       6/15/2041       515.2       506.3       489.7       0.20%  
Strag Industries LLC
dba Meineke Car Care Center 841 1850 W. Roosevelt Blvd. Hwy 74 Monroe NC 28110
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/15/2026       15.0       14.0       13.0       0.01%  
Luv 2 Play AZ LLC
15495 Bell Road Surprise AZ 85374
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/10/2026       62.5       58.2       57.0       0.02%  
Refoleen Inc
dba Spice and Tea Exchange 849 East Commerce Street, Suite 121 San Antonio TX 78205
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/10/2026       85.0       80.7       68.8       0.03%  
VBGB Uptown, LLC
dba VBGB Beer Hall & Garden 920 Hamilton Street Charlotte NC 28206
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/8/2026       84.0       78.3       66.7       0.03%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

146


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ScimTech Industries Inc
dba Archer Aerospace 1021 Linden Ave Chester Springs PA 19425
    Computer and Electronic Product Manufacturing       Term Loan       Prime plus 2.75%       6/6/2026     $ 12.0     $ 11.2     $ 9.5       0.00%  
Larry H. Patterson and Rainbow Movers, Inc
324 Douglass Street Brooklyn NY 11217
    Truck Transportation       Term Loan       Prime plus 2.75%       6/6/2026       22.5       21.0       18.0       0.01%  
Solvit Inc and Solvit North Inc
65 Farmington Valley Drive Plainville CT 06062
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/3/2026       250.0       234.3       210.2       0.08%  
AP5 LLC dba Krauser's Food Store 5 Pond Point Road Milford CT 06460     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/2/2041       242.5       238.7       241.5       0.10%  
ATI Jet Inc
7007 Boeing Drive El Paso TX 79925
    Air Transportation       Term Loan       Prime plus 2.75%       5/31/2026       518.8       480.3       429.8       0.17%  
Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant 1975 Central Ave Albany NY 12205     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/31/2026       50.0       46.3       46.8       0.02%  
Angelo Faia dba AVF Construction 55 Arbour Lane Sewell NJ 08080     Construction of Buildings       Term Loan       Prime plus 2.75%       5/27/2041       100.0       97.8       98.2       0.04%  
Premier Athletic Center of Ohio, Inc
8957 Kingsridge Drive Centerville OH 45459
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/27/2026       87.5       81.0       81.9       0.03%  
Southwest Division Inc
2103 NE 3rd Terrace Cape Coral FL 33909
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       5/26/2026       8.3       7.6       6.9       0.00%  
Jack Frost Firewood Inc. and David Dubinsky
3168 Holland Road Virginia Beach VA 23453
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/26/2041       206.2       202.7       202.2       0.08%  
Mersada Holdings LLC
619 S. Cedar Street Suite
H & I Charlotte NC 28202
    Nonstore Retailers       Term Loan       Prime plus 2.75%       5/26/2026       337.5       312.4       315.9       0.13%  
International Kitchen Supply LLC
3466 North Hwy 11 West Union SC 29696
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/25/2026       186.8       173.0       156.1       0.06%  
PennyLion LLC
dba Creamistry 164 University Avenue Palo Alto CA 94301
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/25/2026       81.0       75.9       66.6       0.03%  
Groth Lumber Co. Inc.
dba True Value 6747 Pacific Avenue Wright MN 55798
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/25/2026       22.5       20.8       21.1       0.01%  
Island Life Graphics Inc
dba FASTSIGNS #576 1925 S 14th Street No. 7 Amelia Island FL 32034
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       5/24/2026       22.5       20.8       18.0       0.01%  
Powerspec Inc
1 Linsley Place Metuchen NJ 08840
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/24/2026       87.5       81.0       69.1       0.03%  
Horseshoe Barbecue, LLC
6555, 6565, 6575 N. Sandario Road Tucson AZ 85743
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/23/2029       15.0       13.3       13.6       0.01%  
Pro Auto Repair LLC
204 F Street SW Quincy WA 98848
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/20/2026       7.5       6.9       6.7       0.00%  
Elderfriend Inc
dba Granny Nannies dba GN Live Scan 1499 W. Palmetto Park Rd., Suite #115 Boca Raton
FL 33486
    Social Assistance       Term Loan       Prime plus 2.75%       5/20/2026       12.7       11.8       10.1       0.00%  
CM Lab Inc
20861 Johnson Street 117-118 Pembroke Pines FL 33029
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/20/2026       172.6       166.1       154.8       0.06%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

147


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
National Air Cargo Holdings Inc 5955 TG Lee Blvd., Suite 500 Orlando FL 32822     Air Transportation       Term Loan       Prime plus 2.75%       5/20/2026     $ 1,250.0     $ 1,156.9     $ 1,143.8       0.46%  
J&A Laundromat Inc.
225 East Park Avenue
Long Beach NY 11561
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/18/2026       67.5       62.5       54.8       0.02%  
Dedicated Incorporated
2916 North 39th Street Phoenix AZ 85019
    Administrative and Support Services       Term Loan       Prime plus 2.75%       5/18/2041       46.5       45.7       46.4       0.02%  
HBA LLC
dba Palmetto Twist-Vista 1225-1229 Lincoln Street Columbia SC 29201
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/18/2026       22.5       20.8       18.2       0.01%  
J Harris Trucking, LLC
2040 5 1/2 Mile Road Racine WI 53402
    Truck Transportation       Term Loan       Prime plus 2.75%       5/13/2026       60.0       40.0       36.4       0.01%  
Studio Find It Georgia Inc
3399 Peachtree Road NE, Suite 400 Atlanta GA 30326
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/13/2026       22.5       20.8       18.4       0.01%  
FJN Catering Inc
106 Main Street Mineola NY 11951
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2041       262.5       258.4       269.4       0.11%  
LED Lighting Enterprises LLC
1062 Barnes Rd. Suite 208 Wallingford CT 06492
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/13/2026       22.5       20.8       18.2       0.01%  
Luv 2 Play OC Inc
26741 Rancho Parkway, Suite 105 Lake Forest CA 92630
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/12/2026       62.5       61.2       52.2       0.02%  
Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano 11 Kirby Road Cromwell
CT 06419
    Social Assistance       Term Loan       Prime plus 2.75%       5/12/2041       132.5       130.1       130.4       0.05%  
The Delon Group LLC
dba I Love Juice Bar 5250 Town Center Circle, #131 Boca Raton FL 33486
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/12/2026       55.0       51.2       43.7       0.02%  
Sabir Inc.
dba Bear Diner 603 Pulaski Hwy Bear DE 19701
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/11/2041       123.8       121.8       125.3       0.05%  
Gator D'Lites LLC
dba D'Lites Emporium 4216 NW 16th Blvd Gainsville FL 32605
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/5/2026       22.5       20.8       17.7       0.01%  
Warner Home Comfort, LLC
dba Smith Piping 1571 Canton Rd., NW Carrollton OH 44615
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/29/2041       82.5       81.0       81.3       0.03%  
Keller, Fishback & Jackson LLP
28720 Canwood Street Agoura Hills CA 91301
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/29/2026       131.8       120.1       121.5       0.05%  
Marc S. Rosenberg P.C. dba Mammuth and Rosenberg 401 East City Avenue Ste 122 Bala Cynwyd PA 19004     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/29/2026       22.5       20.7       17.6       0.01%  
May-Craft Fiberglass Products Inc

96 Hillsboro Road Four Oaks NC 27524
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       4/29/2041       247.5       242.9       255.3       0.10%  
Alpha Omega Trucking LLC
14432-52 State Line Road Brookings OR 97415
    Truck Transportation       Term Loan       Prime plus 2.75%       4/29/2041       175.8       174.0       182.8       0.07%  
Scoler LLC dba Gold's Gym
1225 Ritner Highway Carlisle PA 17013
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/29/2026       262.5       241.2       216.2       0.09%  
Empowerschool LLC and Empower Autism Academy, LLC
1825 Fort View Rd Austin TX 78754
    Social Assistance       Term Loan       Prime plus 2.75%       4/29/2041       151.9       149.1       156.6       0.06%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

148


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Euro Car Miami LLC
5991 SW 23rd Street Hollywood FL 33023
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       4/29/2026     $ 62.5     $ 57.5     $ 58.1       0.02%  
Hard Exercise Works Winter Park LLC
11551 University Boulevard, Ste. 4C Building 1 Orlando FL 32817
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/29/2026       40.7       37.5       31.9       0.01%  
Loriet LLC
906 Blvd of the Arts Sarasota FL 34236
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       4/29/2026       7.5       6.9       5.9       0.00%  
La Nopalera Mexicano 2, Inc.
1434 Hendricks Avenue Jacksonville FL 32207
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/29/2026       125.5       97.2       98.3       0.04%  
Inner Beauty Salon and Suite LLC
825 Beecher Street SW Atlanta GA 30310
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/28/2041       65.0       63.8       66.4       0.03%  
Atlantic Restaurant Associates LLC
2400-2410 Atlantic Ave North Wildwood NJ 08062
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/28/2041       262.5       257.6       265.5       0.11%  
Costume World Inc
950 South Federal Highway Deerfield Beach FL 33441
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       4/28/2041       1,250.0       1,228.8       1,291.4       0.52%  
North American Manufacturing Company
1074 Barring Avenue Scranton PA 18508
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/28/2026       160.0       147.0       148.7       0.06%  
Pecos Inn LLC
dba Econo Lodge 2207 W Third Street Pecos TX 79772
    Accommodation       Term Loan       Prime plus 2.75%       4/28/2041       677.5       662.7       682.7       0.27%  
Shepherd Appraisal Services LLC
dba Property Damage Appraisers of Okla 3140 West Britton Road, Ste. 203 Oklahoma City OK 73120
    Real Estate       Term Loan       Prime plus 2.75%       4/28/2026       9.0       8.3       7.0       0.00%  
Knowledge First Inc
dba Magic Years of Learning 575 N Harris Street Athens GA 30601
    Social Assistance       Term Loan       Prime plus 2.75%       4/27/2026       80.0       73.5       69.9       0.03%  
Green Country Filter Manufacturing LLC
1415 S. 70th E Avenue Tulsa OK 74112
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       4/27/2026       84.2       78.0       68.4       0.03%  
Accent Comfort Services, LLC
5035-C West W. T. Harris Blvd Charlotte NC 28269
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/26/2026       90.0       82.7       70.5       0.03%  
Homecare Casa Rhoda 123 Inc
165 Santa Ana Avenue Santa Barbara CA 93111
    Ambulatory Health Care Services       Term Loan       Prime plus 2%       4/26/2041       675.0       660.9       648.5       0.26%  
McIntosh Trail Management Services Organization Inc
747 South Hill Street Griffin GA 30224
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/22/2041       425.0       417.1       438.3       0.18%  
Automotive Core Recycling, LLC and 828 Old Colony Road, LLC 27-29 Cooper Street Meriden CT 06053     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       4/22/2041       250.0       245.3       236.8       0.09%  
AAA Mill Direct, Inc.
dba Carpet Mill Outlets 1 North Armistead Avenue Hampton VA 23669
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       4/21/2026       7.9       7.2       7.3       0.00%  
Jande Graphics LLC
dba FastSigns #103201 408 W. 75th Street Downers Grove IL 60516
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/21/2026       56.0       51.5       43.9       0.02%  
Miguel Fernando Borda, P.A. dba BGR Dental 1825 Forest Hill Blvd. Suite 205 West Palm Beach FL 33406     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/15/2026       22.5       20.7       18.2       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

149


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
LE & JS dba Laredo Mercado Y Carniceria 565 West Alma Avenue San Jose CA 95125     Food and Beverage Stores       Term Loan       Prime plus 2.75%       4/13/2026     $ 20.0     $ 18.7     $ 15.9       0.01%  
Sushiya Inc
72 South Main Street Hanover NH 03755
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/12/2026       87.5       80.5       71.6       0.03%  
Sierra Foothill Cremation & Funeral Service, Inc.
271 Auburn Ravine Road Auburn CA 95603
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/7/2026       53.0       48.8       41.6       0.02%  
Waterfalls Quick Lube LLC and Veracruz Shabo LLC
1325 Broad Street Central Falls RI 02863
    Repair and Maintenance       Term Loan       Prime plus 2.75%       4/6/2041       271.3       268.2       274.1       0.11%  
KNS Early Learning Academy LLC
57 Merritt Street SE Marietta GA 30060
    Social Assistance       Term Loan       Prime plus 2.75%       4/6/2041       51.0       50.1       49.9       0.02%  
Cameo Carter, MD A Professional Corporation
dba The Garden Pediatric G 101 East Redlands Blvd., Suite 106 Redlands CA 92373
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/31/2026       75.0       68.4       58.3       0.02%  
Duke's Cleaners Inc
715 East Mann Ave Boaz AL 35957
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/31/2026       47.0       42.9       39.9       0.02%  
Christian Soderquist dba Soderquist Plumbing and Heating LLC
7 Oak Drive Sandy Hook CT 06482
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/31/2041       56.8       55.6       58.3       0.02%  
Farhad Brothers LLC
dba Lulu's Pizzeria & Family Restaurant and Marvin 151 Hazard Ave Enfield CT 06082
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/31/2026       66.8       57.2       48.7       0.02%  
Vehicle Safety Supply LLC
15 East 72nd Street, Suite 14-H New York NY 10021
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/31/2026       22.5       20.5       17.5       0.01%  
Men of Steel Enterprises LLC and Vogelbacher Properties LLC
2039 US Route 130 Burlington NJ 08016
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       3/31/2041       393.5       385.6       366.4       0.15%  
Gill Express Inc and Blue Speed LLC
2372 Walnut Ave Livingston CA 95334
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/31/2041       518.0       507.6       510.5       0.20%  
Dana A. Farley dba Independent Cabinets
5805 NE Minder Rd Poulsbo WA 98370
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       3/31/2041       67.5       66.1       69.5       0.03%  
Wyldewood Cellars, Inc.
951 East 119th St Mulvane KS 67120
    Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       3/30/2041       986.8       978.4       948.3       0.38%  
NOSO Development, LLC
4 Walker Way Albany
NY 12205
    Construction of Buildings       Term Loan       Prime plus 2.75%       3/30/2026       187.5       171.1       145.7       0.06%  
Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
162 Danielson Pike Foster RI 02825
    Accommodation       Term Loan       Prime plus 2.75%       3/30/2026       22.5       20.8       21.0       0.01%  
Tom Sawyer Country Restaurant LLC and AM 3208 LLC
3208 Forest Hills Boulevard Palm Springs FL 33406
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/30/2041       257.5       252.7       261.3       0.10%  
Beale Street Blues Company-West Palm Beach, LLC
dba Lafayette’s-West P 550 Rosemary Avenue, Suite 236 West Palm Beach FL 33410
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       3/30/2026       93.8       85.5       75.0       0.03%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

150


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
MTS Car Service LLC
30 Taylor Avenue Norwalk CT 06850
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       3/30/2026     $ 10.5     $ 9.6     $ 8.2       0.00%  
Barrocas Gym LLC
dba Snap Fitness 260 West Main Street Avon CT 06001
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/29/2026       22.5       19.9       18.2       0.01%  
Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane
835 North Beach Street Daytona Beach FL 32114
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2%       3/29/2041       525.0       504.5       504.8       0.20%  
Lust for Life Footwear, LLC
1086 Teaneck Road, Suite 3D Teaneck NJ 07666
    Leather and Allied Product Manufacturing       Term Loan       Prime plus 2.75%       3/29/2026       375.0       342.2       291.4       0.12%  
Vinmar Inc.
dba Locanda Portofino 1110 Montana Ave Santa Monica CA 90403
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/29/2026       81.3       74.1       63.1       0.03%  
Marathon Engineering Corporation
5615 2nd Street W Lehigh Acres FL 33971
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/28/2041       45.0       44.1       45.2       0.02%  
ReNew Interior Surface Cleaning LLC
dba Randy's Carpet Care and Uphols 2385 Damon Drive Colorado Springs CO 80918
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/28/2026       12.4       11.3       11.2       0.00%  
PHCDC1 LLC
dba Quarter + Glory and Public House Collective, Corp. 2017 14th Street NW Washington DC 20009
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/28/2026       50.0       45.6       41.3       0.02%  
RCB Enterprises, Inc.
1100 Grove Park Circle Boynton Beach FL 33436
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/25/2026       56.2       51.3       43.7       0.02%  
Revolution Physical Therapy LLC
dba Apex Network Physical Therapy 2705 Dougherty Ferry Road Suite 104 St. Louis MO 63122
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/25/2026       22.5       20.8       18.2       0.01%  
Excel RP Inc
6531 Park Avenue Allen Park MI 48101
    Machinery Manufacturing       Term Loan       Prime plus 2.75%       3/25/2026       125.0       114.1       103.8       0.04%  
ActKnowledge, Inc.
365 5th Avenue New York NY 10016
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/24/2026       125.0       114.1       115.3       0.05%  
Lowgap Grocery & Grill LLC
8773 West Pine Street Lowgap NC 27024
    General Merchandise Stores       Term Loan       Prime plus 2.75%       3/24/2041       167.5       164.1       172.4       0.07%  
International Construction Inc
53955 Gratiot Ave Chesterfield MI 48051
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       3/24/2041       50.0       49.0       48.9       0.02%  
Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring 267 Saw Mill River Road Elmsford NY 10523     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/24/2026       50.0       46.3       45.5       0.02%  
Acton Hardware LLC and Mark Allgood & Jamie Allgood 31814 Crown Valley Rd Acton CA 93510     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       3/24/2041       498.6       489.0       478.1       0.19%  
Magnation Corporation and Misha Family Trust 403 Martin Luther King Jr. Way Oakland
CA 94607
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/22/2041       101.3       99.5       104.5       0.04%  
growth.period LLC and Potomac Recruiting LLC 1950 Old Gallows Road, Suite 250 Tysons VA 22182     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/21/2026       156.3       142.6       121.4       0.05%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

151


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Precious Care LLC and Precious Care Management LLC
186-06 Union Turnpike Fresh Meadows NY 11364
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/21/2026     $ 557.5     $ 509.6     $ 437.1       0.17%  
Media Capital Partners, Inc
809 Cedar Road Southport CT 06890
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       3/21/2026       22.5       20.8       17.7       0.01%  
Pro Tech Technology LLC
701 South 60th Street Harrisburg PA 17111
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       3/18/2026       7.5       6.8       5.8       0.00%  
Taylors Zinn Enterprises Inc
dba Eons Auto Care Inc 330 West Harden Street Graham
NC 27253
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/18/2041       80.8       79.1       82.2       0.03%  
ERT Group Inc and Curt's Tools Inspection Inc
920 2nd Avenue South Minneapolis MN 55402
    Support Activities for Mining       Term Loan       Prime plus 2.75%       3/18/2041       1,250.0       1,229.9       1,231.7       0.49%  
Kekoa Enterprises Inc
dba Signarama Sandy 8942 South 700 East Sandy UT 84070
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/18/2026       49.5       45.2       38.5       0.02%  
Mariam Diner Inc
dba Country Kitchen Restaurant 17393 Main Street Hesperia CA 92345
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/18/2026       52.5       47.9       40.8       0.02%  
Brian T Rice dba BD Logging 800 3rd St Apt B St Marys WV 26170     Forestry and Logging       Term Loan       Prime plus 2.75%       3/17/2026       15.8       14.4       13.1       0.01%  
Auto and Property Insurance Solutions dba Taylor Company Insurance & F 2504 Transportation Ave National City CA 91950     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       3/16/2026       16.4       14.8       12.6       0.01%  
Demand Printing Solutions Inc.
3900 Rutledge Road NE Albuquerque NM 87109
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       3/16/2026       21.8       19.9       19.0       0.01%  
LAN Doctors Inc
14 Pierson Court Mahwah NJ 07430
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/16/2026       55.0       50.2       50.8       0.02%  
Evergreen Pallet LLC and Evergreen Recycle LLC
302 W 53rd St N. Wichita KS 67204
    Wood Product Manufacturing       Term Loan       Prime plus 2.75%       3/16/2026       1,039.3       948.8       858.2       0.34%  
K Soles Corp
dba Max Collections 3208 Oakcliff Industrial Street Doraville GA 30340
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/16/2026       22.5       20.5       17.5       0.01%  
R & D Enterprises Inc
dba My Pool Man 291 North Texas Ave. Orlando FL 32805
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/15/2026       50.0       45.6       38.9       0.02%  
HEWZ, LLC
dba Hard Exercise Works 5684 West Sample Road Coral Springs FL 33071
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/14/2026       22.5       20.5       17.5       0.01%  
Mustafa Inc and Raouf Properties LLC
3538 Pin Oak Dr San Antonio TX 78229
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/14/2041       75.0       73.5       76.1       0.03%  
Country Paint and Hardware Inc 2410 Foxon Road North Banford CT 06471     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       3/11/2026       87.4       79.7       69.5       0.03%  
Wilban LLC
454 US Highway 22 Whitehouse Station NJ 08889
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/11/2026       105.0       96.1       92.2       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

152


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ABCs & 123s Infant and Child Care Center LP
13419 Hwy 290E., Bldg 5 Manor TX 78653
    Social Assistance       Term Loan       Prime plus 2.75%       3/11/2026     $ 11.3     $ 10.3     $ 8.7       0.00%  
Accuair Control Systems LLC
dba Accuair Suspension 888 Ricardo Court San Luis Obispo CA 93401
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       3/11/2026       150.0       136.9       119.4       0.05%  
Magill Truck Line LLC and Jeff J. Ralls 211 West 53rd Street N. Park City KS 67204     Truck Transportation       Term Loan       Prime plus 2.75%       3/11/2029       210.8       198.0       180.6       0.07%  
Dupre Capital LLC
dba Fastsigns 215 Quartermaster Court Jeffersonville IN 47130
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/11/2026       58.4       53.3       45.4       0.02%  
Fayette Computer Consulting Company
107 Summer Spring Lane Greensburg PA 15601
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/10/2026       22.5       20.5       18.4       0.01%  
State Painting & Decorating Co., Inc. 228 East 45th Street New York NY 10017     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/10/2026       103.8       94.7       80.6       0.03%  
B.P.T.M. of NV LLC and Agentis Bros., LLC
3510 Route 378 Bethlehem PA 18015
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/9/2041       525.0       514.4       519.0       0.21%  
Step Up Academy of the Arts LLC
2558 Wigwam Pkwy Ste A Henderson NV 89074
    Educational Services       Term Loan       Prime plus 2.75%       3/9/2026       8.0       7.3       6.2       0.00%  
A & A Auto Care LLC
11 Old York Road Bridgewater NJ 08807
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/9/2026       12.1       11.1       10.7       0.00%  
Faith Summit Supply Inc
dba Summit Supply and Summit True Value 8584 US Business Highway 277 Haskell
TX 79521
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       3/9/2026       22.5       20.5       18.8       0.01%  
Swerve Salon LLC
1419 N Wells Street Chicago IL 60610
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/8/2026       79.0       72.1       61.4       0.02%  
J & W Hardwood Flooring Inc
14967 Madison St Brighton
CO 80602
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/7/2026       7.5       6.8       5.8       0.00%  
Labmates LLC and POV Holdings LLC
141 Watertown Road Thomaston CT 06787
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/4/2041       109.3       107.1       112.4       0.04%  
Hueston and Company CPA LLC 8792 East State Road 70, Suite B Bradenton FL 34202     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/4/2026       8.3       7.4       6.5       0.00%  
Almost Home Daycare LLC
35 Copps Hill Road Ridgefield CT 06877
    Social Assistance       Term Loan       Prime plus 2.75%       3/3/2026       50.0       45.6       45.1       0.02%  
Miles of Smiles Inc
1408 Molalla Avenue Oregon City OR 97045
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/2/2026       93.5       86.9       75.8       0.03%  
Living Essentials HVAC Corp
42 West Street, Apt 24 Randolph MA 02368
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/28/2026       15.0       13.6       11.7       0.00%  
Consulting Solutions, Inc. and Mark Luciani 3000 N Federal Highway, STE 1 Fort Lauderdale
FL 33306
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/28/2026       11.2       10.2       10.1       0.00%  
Doxa Deo Inc
dba Luv 2 Play 1600 Village Market Blvd Leesburg
VA 20175
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2026       105.0       99.4       87.8       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

153


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
The River Beas, LLC
dba Subway and Punam Singh 5516 Baltimore Ave Hyattsville MD 20781
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2041     $ 135.9     $ 133.4     $ 138.4       0.06%  
Powerpits CS1, LLC
dba Pita Pit 2008 S Texas Avenue College Station TX 77840
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2026       18.8       17.0       15.3       0.01%  
Drug Detection Laboratories, Inc.
and Minh Tran 9700 Business Park Drive Sacramento CA 95827
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/28/2026       19.8       17.9       15.6       0.01%  
Blackstones Hairdressing LLC
2 Avenue of the Americas New York NY 10013
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/23/2026       52.0       47.5       40.9       0.02%  
Aaradhya LLC
dba Market Square Laundry 7727 Crittenden Street Philadelphia PA 19118
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/23/2026       80.0       72.5       61.7       0.02%  
R-No-Landscaping LLC
6709 W Calcasieu Drive Lake Charles LA 70605
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/19/2026       8.3       7.5       6.5       0.00%  
BER Enterprise 332 Inc
dba Edible Arrangements 2802 University Drive Coral Springs FL 33065
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/19/2026       22.5       20.4       17.6       0.01%  
R & K Contracting Inc
3605 NW 31st Ave Fort Lauderdale FL 33309
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/18/2026       15.8       14.4       14.1       0.01%  
Pacific Coast Medical Group LLC
dba Celebrity Laser Spa and Advanced 11661 San Vicente Boulevard, Suite 101 Los Angeles CA 90049
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/17/2026       245.0       222.0       224.3       0.09%  
B for Blonde, LLC
dba Blo Blow Dry Bar 142 East 49th Street New York NY 10017
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/12/2026       62.0       56.9       48.5       0.02%  
Gilmore Heights Dental Holdings, LTD and Chas Rob LLC 2250 Warrensville Center Road University Heights OH 44118     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/12/2029       310.3       290.4       269.1       0.11%  
Ei3 Corporation
136 Summit Avenue Montvale NJ 07645
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/12/2026       326.9       296.1       299.3       0.12%  
Jersey Shore Marina & Boat Sales, Inc.
841 Route 70 East Brick NJ 08724
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/12/2041       625.0       612.3       643.2       0.26%  
Base USA, Inc.
927 Lincoln Road, Suite 101 Miami Beach FL 33139
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       2/2/2026       50.0       45.4       45.8       0.02%  
Nowatzke Service Center Inc
dba Nowatzke Truck and Trailer 6900 Whitmore Lake Rd Whitmore Lake MI 48189
    Repair and Maintenance       Term Loan       Prime plus 2.75%       1/29/2026       105.0       97.4       98.5       0.04%  
Zouk Ltd
dba Palma 28 Cornelia Street New York NY 10014
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/29/2026       22.5       20.3       20.5       0.01%  
SuzyQue's LLC
dba SuzyQue's 34 South Valley Road West Orange NJ 07052
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/28/2026       22.5       20.3       20.5       0.01%  
Tammy Lavertue
24 Wakefield Street Rochester NH 03867
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       1/28/2026       11.3       10.1       9.9       0.00%  
Wildflour Bakery & Cafe LLC
5137 Clareton Dr., Ste 100 Agoura Hills CA 91301
    Social Assistance       Term Loan       Prime plus 2.75%       1/28/2026       62.5       56.2       55.7       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

154


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
New Image Building Services, Inc.
dba The Maids serving Oakland and Ma 320 Church Street Mount Clemens MI 48043
    Administrative and Support Services       Term Loan       Prime plus 2.75%       1/19/2026     $ 83.1     $ 74.9     $ 67.2       0.03%  
Oak Tree Storage LLC
1002 Quentin Rd, Suite #3005 Brooklyn NY 11223
    Other Information Services       Term Loan       Prime plus 2.75%       1/19/2026       78.8       70.8       61.6       0.02%  
Gendron Funeral and Cremation Services, Inc.
135 North Lime Avenue Sarasota FL 34237
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/11/2041       112.5       108.4       113.9       0.05%  
Dolarian Realty LLC and OV's Restaurant Inc
34 Old Colony Avenue East Taunton MA 02718
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/5/2041       67.8       66.3       69.6       0.03%  
Lemonberry Food Stores Inc
dba Lemonberry Frozen Yogurt 1196 Inverness Lane Stow OH 44224
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/29/2025       112.5       100.5       94.4       0.04%  
MCF Forte LLC
1245 W Baseline Rd Unit 105 Mesa AZ 85202
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/29/2025       18.8       16.7       15.5       0.01%  
Bright Dialysis LLC and Ft Pierce Kidney Care LLC
2000 Hartman Road Fort Pierce FL 34947
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/28/2025       1,250.0       1,116.3       1,025.4       0.41%  
Panditos LLC
dba White Lotus Home 431 Raritan Avenue Highland Park NJ 08904
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       12/28/2025       15.9       14.2       13.0       0.01%  
V2 Tango LLC
dba Palette 22 2700 S Quincy Street, #40 Arlington VA 22206
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/23/2025       250.0       223.3       208.9       0.08%  
800 on the Trax LLC and Matrix Z LLC
800 SW 21st Terrace Fort Lauderdale FL 33312
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       12/23/2040       240.0       235.1       244.5       0.10%  
Optima Health Care Inc
4532 Rinetti Lane La Canada CA 91011
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/23/2025       62.5       55.8       56.9       0.02%  
Ridge Road Equestrian LLC
dba Ricochet Ridge Ranch Inc 24201 North Hwy 1 Fort Bragg CA 95437
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/23/2040       102.5       99.9       104.4       0.04%  
Joyce Outdoor Advertising Chicago LLC
2443 West 16th Street Chicago IL 60608
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/22/2040       300.0       294.4       305.0       0.12%  
The LAX Shop Inc
1216 W Belmont Ave Chicago IL 60657
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       12/22/2025       125.0       87.3       89.1       0.04%  
Premier Athletic Center of Ohio Inc. and Gates Investments and Wade Ga 8957 Kingsridge Drive Centerville OH 45459     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/22/2028       882.0       816.5       841.9       0.34%  
Hattingh Incorporated dba Prosthetic Care Facility
4415 Woodridge Pkwy, Ste 180 Leesburg VA 20176
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/21/2025       18.0       16.1       15.3       0.01%  
G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC and ANA
250 NW Peacock Blvd Port St. Lucie FL 34986
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/18/2040       1,025.0       999.2       1,065.3       0.43%  
Trip Consultants U.S.A. Inc.
311 85th Street Brooklyn NY 11209
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/18/2025       175.0       156.3       143.2       0.06%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

155


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry 1128 Commerce Avenue Atwater CA 95301     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/18/2025     $ 73.0     $ 66.9     $ 62.5       0.02%  
Accent Tag and Label Inc
2201 Rittenhouse St Des Moines IA 50321
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/18/2040       665.8       646.3       674.0       0.27%  
Labmates LLC
141 Watertown Road Thomaston CT 06787
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       12/18/2040       162.5       158.4       168.9       0.07%  
Abbondanza Market LLC
dba Hampton Falls Village Market 82 Lafayette Road Hampton Falls NH 03844
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/18/2025       73.7       60.1       56.3       0.02%  
Capital Scrap Metal LLC
1610 N Powerline Road Pompano Beach FL 33069
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/18/2025       36.0       32.2       29.8       0.01%  
Mustafa Inc
dba Adiba Grocery 5712 Wurzbach Road San Antonio TX 78238
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/17/2025       103.8       93.1       94.9       0.04%  
Learning Skills LLC and Christopher Shrope
22841 NE 8th Street Sammamish WA 98074
    Educational Services       Term Loan       Prime plus 2.75%       12/17/2025       10.8       9.6       8.8       0.00%  
New York Home Health Care Equipment, LLC
30 Hopper Street Westbury NY 11590
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/16/2025       875.0       783.8       791.7       0.32%  
Moments to Remember USA LLC
dba Retain Loyalty 1250 Sanders Avenue SW Massillon OH 44646
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/16/2025       75.0       67.1       65.6       0.03%  
Swalm Sreet LLC and New York Home Health Care Equipment LLC
30 Hopper Street Westbury NY 11590
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/16/2040       375.0       366.8       387.5       0.15%  
Abitino's JFK LLC dba Abitino's John F. Kennedy International Airport, Terminal 8 Jamaica NY 11430     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2022       125.0       106.0       99.8       0.04%  
JAG Unit 1, LLC
1 West Main Street Patchogue NY 11772
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2025       250.0       223.3       204.6       0.08%  
SDA Holdings LLC and Les Cheveux Salon Inc
306 McClanahan Street Roanoke VA 24014
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/15/2040       428.8       418.9       432.2       0.17%  
Evans & Paul LLC and E&P Holdings I LLC
140 Dupont Street Plainview NY 11803
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       12/15/2025       125.0       111.6       104.6       0.04%  
Basista Family Limited Partnership and UPE, Inc.
3401 Brecksville Rd Richfield OH 44286
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/14/2040       342.5       333.9       347.2       0.14%  
DC Enterprises Ltd.
dba Lakeview True Value 318 North F Street Lakeview OR 97630
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       12/14/2025       22.5       20.1       19.9       0.01%  
Tri-State Remodeling & Investments, LLC
213 Assisiknoll Court Cincinnati OH 45238
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/11/2025       15.9       14.2       14.2       0.01%  
AGR Foodmart Inc
dba Nashua Road Mobil 11 Nashua Road Londonderry NH 03053
    Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2025       22.5       20.1       19.9       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

156


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Alexandra Afentoulides dba Vi's Pizza Restaurant 1068 Old Colony Rd Meriden CT 06450     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/11/2040     $ 46.3     $ 45.1     $ 48.1       0.02%  
Cares, Inc
dba Dumpling Grounds Day Care Center 4508 Blakiston Street Philadelphia PA 19136
    Social Assistance       Term Loan       Prime plus 2.75%       12/10/2025       7.5       6.7       6.8       0.00%  
Custom Exteriors, Inc.
2142 Rheem Drive, Suite E Pleasanton CA 94588
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/9/2025       100.0       89.3       83.8       0.03%  
Sushiya, Inc.
72-74 South Main Street Hanover NH 03755
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/8/2025       108.7       97.1       91.4       0.04%  
My Jewels, LLC
dba The UPS Store #6712 4858 W. Pico Blvd. Los Angeles CA 90019
    Administrative and Support Services       Term Loan       Prime plus 2.75%       12/7/2025       56.3       31.6       29.0       0.01%  
Food & Fuel Company LLC
dba Lowery Food Mart 644 Joseph E Lowery Blvd NW Atlanta GA 30318
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/4/2040       122.5       119.4       127.3       0.05%  
Blue Ox Trucking Inc.
307 Lantern Ridge Lane Cary NC 27519
    Truck Transportation       Term Loan       Prime plus 2.75%       12/4/2025       12.3       6.2       6.3       0.00%  
LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC 880 Lowcountry Blvd Mount Pleasant SC 29464     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/4/2040       502.5       490.4       514.7       0.21%  
American Campgrounds LLC
dba Whit's End Campground 140 Newman Drew Road West Ossipee NH 03890
    Accommodation       Term Loan       Prime plus 2.75%       12/4/2040       293.0       285.6       300.2       0.12%  
Tariq, LLC
dba 76 Food Mart 1111 17th Street SE Auburn WA 98002
    Gasoline Stations       Term Loan       Prime plus 2.75%       12/2/2040       375.0       365.6       384.0       0.15%  
401 JJS, Corp and G. Randazzo's Trattoria Corporation 401 – A 34th Street Ocean City NJ 08226     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/1/2040       52.7       51.7       53.8       0.02%  
Delta Aggregate, LLC
9025 – 9775 Church Road Felda FL 33930
    Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       11/30/2025       100.0       91.1       92.9       0.04%  
Block and Grinder LLC
130 Landings Drive, Ste 103 Mooresville NC 28117
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       200.0       56.6       57.7       0.02%  
Hurshell Leon Dutton dba High Jump Party Rentals 157 East Concho Avenue San Angelo TX 76903     Rental and Leasing Services       Term Loan       Prime plus 2.75%       11/30/2025       17.6       15.5       15.8       0.01%  
Japp Business Inc
dba Pick and Eat and Japp Drink Corp. 4179 Broadway New York NY 10033
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       125.0       110.8       105.1       0.04%  
Smokeyard Inc dba Smokeyard BBQ and Chop Shop 1111 Forest Trail Unit 201 Mammoth CA 93546     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       125.0       110.8       103.0       0.04%  
State Painting and Decorating Co Inc
228 East 45th Street, 18th Floor New York NY 10017
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/25/2025       100.0       64.1       58.7       0.02%  
Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad 780 S Peace Haven Road Winston Salem NC 27103     Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       11/25/2025       22.5       19.8       18.2       0.01%  
DWeb Studio, Inc.
10800 E. Bethany Drive, Suite 275 Aurora CO 80014
    Educational Services       Term Loan       Prime plus 2.75%       11/25/2025       11.3       10.0       9.1       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

157


 
 

TABLE OF CONTENTS

               
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
403 S Dillard St Winter Garden FL 34787
    Social Assistance       Term Loan       Prime plus 2.75%       11/23/2025     $ 11.1     $ 9.8     $ 10.0       0.00%  
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC 726-740 South Fleming Street Sebastian FL 32958     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/23/2040       750.0       740.3       785.2       0.31%  
Haven Hospitality Group Inc.
dba Haven Gastropub 190 South Glassell Street, Suite C&D Orange CA 92866
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/20/2025       132.5       117.4       109.0       0.04%  
CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
717 Titus Avenue Rochester NY 14617
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/20/2040       244.4       238.1       239.1       0.10%  
Ronny Ramirez RX Corp
dba Naturxheal Family Pharmacy 3105 107th Avenue Doral FL 33178
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       11/20/2025       89.0       80.0       74.2       0.03%  
S.B.B. Enterprises Inc
dba Williamston Hardware 139 S Putnam Street Williamston MI 48895
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/19/2040       108.8       105.6       106.3       0.04%  
Key Pix Productions Inc.
dba Air Bud Entertainment 22525 Pacific Coast Highway Malibu CA 90265
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       11/18/2040       839.8       817.3       871.4       0.35%  
RDT Enterprises, L.L.C.
2134 Helton Drive Florence AL 35630
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/12/2025       22.5       19.9       19.6       0.01%  
E.S.F.P. LLC
dba Volusia Van and Storage 916 South Nova Road Ormond Beach FL 32174
    Truck Transportation       Term Loan       Prime plus 2.75%       11/11/2025       91.3       78.9       73.5       0.03%  
Green Life Lawnscapes LLC
dba Green Life Lawn Care 1820 NE Jensen Beach Blvd Jensen Beach FL 34957
    Administrative and Support Services       Term Loan       Prime plus 2.75%       11/6/2025       127.3       112.9       113.5       0.05%  
Jumbomarkets Inc
dba Rines Jumbomarkets 15500 SW Trail Drive Indiantown FL 34956
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/4/2025       306.2       269.4       272.3       0.11%  
Bisson Transportation Inc
dba I & R Associates and Document Secutiry 85 Eisenhower Drive Westbrook ME 04092
    Truck Transportation       Term Loan       Prime plus 2.75%       10/30/2025       22.5       19.8       19.4       0.01%  
L.M. Jury Enterprises, Inc
dba Midwest Monograms 2537 Baumgartner Road St Louis MO 63129
    Textile Product Mills       Term Loan       Prime plus 2.75%       10/28/2025       77.0       67.7       62.9       0.03%  
Top Cat Ready Mix, LLC, Ples Investments LLC, and Pappy's Sand and 13851 S State HWY 34 Scurry TX 75158     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/28/2025       711.3       625.7       588.1       0.24%  
Financial Network Recovery 250 E Easy Street Suite 1 Simi Valley CA 93065     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/26/2025       40.0       35.2       32.3       0.01%  
Windsor Direct Distribution LLC
3 Thompson Road East Windsor CT 06088
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       10/26/2025       14.2       12.5       11.5       0.00%  
Insurance Fire & Water Restorations, LLC
2151 Andrea Lane Fort Myers FL 33912
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       10/23/2025       22.5       19.8       19.6       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

158


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Jacksonville Beauty Institute Inc.
dba Beauty Institute's 5045 Soutel Drive #80 Jacksonville FL 32208
    Educational Services       Term Loan       Prime plus 2.75%       10/23/2025     $ 50.0     $ 44.0     $ 40.3       0.02%  
Tannehill Enterprises Inc
dba Hobbytown USA Folsom 2761 East Bidwell St #400 Folsom CA 95630
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       10/14/2025       87.4       76.9       70.4       0.03%  
ADMO Inc
dba Mid States Equipment 16180 Westwoods Business Park Ellisville MO 63021
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       10/8/2025       22.5       19.8       18.4       0.01%  
SCJEN Management Inc
dba Bowl of Heaven 43958 Pacific Common Blvd Fremont CA 94538
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2025       71.2       62.9       57.5       0.02%  
Naeem Khan LTD
260 West 36th Street New York NY 10018
    Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/30/2025       125.0       109.1       99.9       0.04%  
Accent Homes Services LLC
dba Benjamin Franklin Plumbing of Kansas Cit 7748 Troost Avenue Kansas City MO 64131
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/30/2028       66.5       60.6       61.0       0.02%  
Recycling Consultants, Inc. and Prairie State Salvage and Recycling In PO Box 468 Wood River IL 62095     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/30/2027       767.5       691.5       663.3       0.27%  
Barub Realty LLC and Barub LLC dba Woodlawn Cabinets 1838 Adee Avenue Baychester NY 10469     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       9/30/2040       143.0       138.8       147.6       0.06%  
Binky's Vapes LLC
10539 Greenbelt Road Suite 102 Lanham MD 20706
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/30/2025       22.5       19.6       18.0       0.01%  
Bat Bridge Investments Inc
dba Kalologie 360 Spa 1100 South Lamar Boulevard, Suite 2120 Austin TX 78704
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/30/2025       85.5       76.1       69.7       0.03%  
R.H. Hummer Jr., Inc.
2141 P Avenue Williamsburg IA 52361
    Truck Transportation       Term Loan       Prime plus 2.75%       9/30/2025       375.0       343.6       340.7       0.14%  
Joyce Outdoor Advertising LLC
800 James Avenue Scranton PA 18510
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/29/2040       234.8       229.0       241.9       0.10%  
Greensward of Marco Inc.
54 Marco Lake Drive Marco Island FL 34146
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/28/2040       87.5       84.9       87.9       0.04%  
RIM Investments LLC and RIM Architects LLC
645 G Street Suite 400 Anchorage AK 99501
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/28/2040       399.0       387.1       399.7       0.16%  
The Grasso Companies LLC and Grasso Pavement Maintenance LLC Veranda L
314 Wilson Avenue Norwalk CT 06854
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       9/28/2025       518.7       449.8       458.4       0.18%  
South Towne Dental Center, P.C. 10450 South State Street Suite 1210 Sandy UT 84070     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025       50.0       43.8       44.6       0.02%  
Sandlot Ventures LLC and Sandbox Ventures LLC
1857A Elmdale Ave Glenview IL 60025
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/25/2040       442.5       430.0       439.9       0.18%  
Yachting Solutions LLC
229 Commercial St Rockport ME 04856
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/25/2040       962.5       933.7       954.1       0.38%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

159


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Prestigious LifeCare for Seniors LLC
5701 North Pine Island Road Tamarac FL 33321
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025     $ 9.8     $ 8.6     $ 8.3       0.00%  
Daniel W. Stark dba Mountain Valley Lodge and RV Park 223 Hwy 80 Rodeo NM 88056     Accommodation       Term Loan       Prime plus 2.75%       9/25/2040       13.5       13.1       14.0       0.01%  
St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn 10 West Orvis Street Massena NY 13662     Accommodation       Term Loan       Prime plus 2.75%       9/24/2040       625.0       606.3       631.7       0.25%  
J.R. Wheeler Corporation
dba Structurz Exhibits and Graphics 3748 SW 30th Avenue Hollywood FL 33312
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/24/2025       21.0       18.4       18.7       0.01%  
Hagerstown Muffler, Inc. and JMS Muffler, Inc
10011 Baltimore National Pike Myersville MD 21773
    Repair and Maintenance       Term Loan       Prime plus 2.75%       9/24/2040       327.5       317.7       338.5       0.14%  
Rutledge Enterprises Inc
dba BLC Property Management 149 S. 400 East Greenfield IN 46140
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/23/2040       62.5       60.1       62.7       0.03%  
Finish Strong Inc
dba FASTSIGNS St Peters 98 North Hillview Drive St Peters MO 63376
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/23/2025       50.0       43.6       39.9       0.02%  
J3K LLC
dba Ronan True Value Hardware 63540 US Hwy 93 Ronan MT 59860
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       9/23/2025       152.5       133.1       121.9       0.05%  
Nova Solutions Inc
421 W Industrial Ave Effingham IL 62401
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/22/2040       320.0       310.4       323.6       0.13%  
Pine Belt Wood Products LLC
13795 Highway 17 Chatom AL 36518
    Forestry and Logging       Term Loan       Prime plus 2.75%       9/22/2040       163.7       158.8       157.4       0.06%  
Sound Manufacturing Inc
51 Donnelley Road Old Saybrook CT 06475
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/21/2025       50.0       43.7       41.4       0.02%  
IIoka Inc
dba New Cloud Networks 160 Inverness Drive W Suite 150 Englewood CO 80112
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/21/2025       665.0       583.2       533.9       0.21%  
Vanderhoof LLC
dba Soxfords 11 Sellecks Walk Pound Ridge NY 10576
    Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/18/2025       15.9       13.9       12.7       0.01%  
MiJoy Inc
dba Imo's Pizza 215 South Kirkwood Road Kirkwood MO 63122
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/18/2025       8.2       7.2       6.6       0.00%  
Naeem Khan LTD
260 West 36h Street New York NY 10018
    Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/17/2025       125.0       109.1       99.9       0.04%  
Import Car Connection Inc
dba Car Connection 2558 Mountain Industrial Blvd Tucker GA 30084
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/16/2040       407.5       395.3       418.1       0.17%  
FirstVitals Health and Wellness Inc 1288 Ala Moana Blvd Suite 27E Honolulu HI 96814     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/15/2025       150.0       130.9       119.8       0.05%  
Almost Home Daycare LLC
35 Copps Hill Road Ridgefield CT 06877
    Social Assistance       Term Loan       Prime plus 2.75%       9/11/2025       62.5       54.6       55.3       0.02%  
Veliu LLC
dba FASTSIGNS #15901 1021 61st Street Suite 600 Galveston TX 77551
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/10/2025       50.0       44.2       41.2       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

160


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
B and A Friction Materials Inc
1164 Old Bayshore Hwy
San Jose CA 95112
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/9/2025     $ 102.5     $ 87.7     $ 80.3       0.03%  
Gardner's Wharf Holdings LLC
and Gardner's Wharf Seafood Inc 170 Main Street
North Kingstown RI 02852
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       9/8/2040       140.0       135.8       144.7       0.06%  
AIG Inc
16 Hamilton Street
West Haven CT 06516
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/4/2040       363.8       352.9       357.7       0.14%  
Empower Autism Academy
11316 Wet Season
Drive Austin TX 78754
    Social Assistance       Term Loan       Prime plus 2.75%       9/4/2040       685.0       664.5       708.1       0.28%  
Higher Grounds Community Coffeehouse, LLC
39 Kingstown Road
Wyoming RI 02898
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/2/2025       8.3       7.2       6.8       0.00%  
Delray Scrap Recycling LLC
1249 Tangelo Terrace Delray
Beach FL 33444
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       22.5       19.3       17.6       0.01%  
The Camera House Inc
7351 Fulton Ave
North Hollywood CA 91605
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       1,250.0       1,082.6       1,046.2       0.42%  
LAN Doctors Inc
14 Pierson Court Mahwah NJ 07430
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/28/2025       81.2       70.4       67.6       0.03%  
Elite Institute LLC
dba Huntington Learning Center 13526 Village Park Drive Suite 214 Orlando FL 32837
    Educational Services       Term Loan       Prime plus 2.75%       8/28/2025       15.0       13.2       12.0       0.00%  
Zephyr Seven Series LLC
dba 18/8 Fine Men's Salon 2851 Craig Drive #201D McKinney TX 75070
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       8/28/2025       81.3       72.9       67.8       0.03%  
J and K Fitness L.L.C.
dba Physiques Womens Fitness Center 2505 Verot School RD Lafayette LA 70508
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2041       93.8       91.9       96.7       0.04%  
Trading Group 3 Inc
1250 East Hallendale Beach Blvd Hallandale FL 33009
    Nonstore Retailers       Term Loan       Prime plus 2.75%       8/28/2025       50.0       44.0       40.2       0.02%  
B and J Catering Inc
dba Culinary Solutions 2201 South Federal Highway Boynton Beach FL 33435
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/27/2040       547.5       535.4       548.9       0.22%  
God Be Glorified Inc
dba (*)GBG Inc 40 West. 162nd St South Holland IL 60473
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       8/20/2025       53.0       45.9       42.0       0.02%  
3000 CSI Property LLC
and Consulting Solutions Inc 3000 N Federal Highway,
Ste 1 Fort Lauderdale
FL 33306
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/20/2040       137.5       133.2       140.7       0.06%  
GDP Gourmet LLC
dba Joe and John's Pizza Restaurant 136 New Jersey Ave Absecon NJ 08201
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/19/2040       145.0       140.4       145.7       0.06%  
Gold Jet Corp.
2472 Broadway New York NY 10025
    Couriers and Messengers       Term Loan       Prime plus 2.75%       8/14/2025       68.3       62.4       59.9       0.02%  
SKJ Inc
dba Subway 401 S Woodlawn Ave Bloomington IN 47401
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/13/2025       84.8       73.4       67.9       0.03%  
LP Industries Inc
dba Childforms 110 Charleston Drive Mooresville NC 28117
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025       125.0       108.7       106.4       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

161


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Advanced Machine & Technology, Inc.
236 Route 206
North Branchville NJ 07826
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025     $ 90.3     $ 78.1     $ 75.8       0.03%  
Pauley Tree and Lawn Care Inc
6 Price Avenue Norwalk
CT 06854
    Administrative and Support Services       Term Loan       Prime plus 2.75%       7/28/2025       65.8       57.2       54.4       0.02%  
Beale Street Blues Company-
West Palm Beach LLC dba Lafayette's-West Pa 550 Rosemary Avenue, Suite 236 West Palm Beach FL 33401
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       7/24/2025       66.3       56.9       53.5       0.02%  
Forever & Always of Naples Inc
dba Island Animal Hospital 860 Bald Eagle Dr Marco
Island FL 34145
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       7/24/2025       107.5       84.8       82.0       0.03%  
Smart Artists Inc.
450 West 24th Street Suite 1C New York NY 10011
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       7/23/2025       22.5       19.3       17.7       0.01%  
Pooh's Corner Realty LLC
and Pooh's Corner Inc 40 West Avon Rd Avon CT 06001
    Social Assistance       Term Loan       Prime plus 2.75%       7/23/2040       103.8       100.5       106.6       0.04%  
Free Ion Advisors LLC
322 Evandale Road
Scarsdale NY 10583
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       7/21/2025       64.3       55.2       50.5       0.02%  
Murrayville Donuts, Inc
dba Dunkin' Donuts
2304 N College Rd
Wilmington NC 28405
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       7/15/2040       344.5       336.9       345.2       0.14%  
Union 2 LLC
dba The Standard 1520 Broadway Fort Myers FL 33901
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/10/2025       91.5       82.9       80.3       0.03%  
Thrifty Market, Inc.
dba Thrifty Foods 702 10th St Wheatland WY 82201
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/30/2030       262.5       240.7       231.1       0.09%  
All About Smiles
P A 4543 Stoney Batter Road Wilmington DE 19808
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       237.7       229.4       239.5       0.10%  
Danny V, LLC dba Hugo's Taproom 106 West Pittsburgh Street Greensburg PA 15601     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2040       54.0       47.2       47.5       0.02%  
Anglin Cultured Stone Products LLC dba Anglin Construction 877 Salem Church Road
Newark DE 19702
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2025       281.8       240.1       226.6       0.09%  
Jonathan E Nichols and Nichols Fire and Security LLC
1906 Vanderhorn Drive
Memphis TN 38134
    Administrative and Support Services       Term Loan       Prime plus 2.75%       6/30/2025       75.0       63.9       63.3       0.03%  
BJ's Tavern LLC
and BJ's Cabana Bar Inc 2122 McCulloch Blvd N Lake Havasu AZ 86403
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2040       212.5       205.1       213.7       0.09%  
The Smile Place LLC
17 North Main Street Smyrna DE 19977
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       283.9       274.0       286.0       0.11%  
Myclean Inc.
247 West 36th Street 9th Floor New York NY 10018
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/29/2025       15.9       13.6       12.4       0.00%  
Summit Beverage Group LLC
211 Washington Avenue Marion VA 24354
    Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2030       291.9       268.0       260.9       0.10%  
Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery 301 W Bastanchury Rd
Fullerton CA 92835
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/29/2025       337.5       287.6       266.4       0.11%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

162


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
CEM Autobody LLC dba Dawn's Autobody 7 Division
St Keyport NJ 07735
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/26/2040     $ 135.5     $ 130.8     $ 134.5       0.05%  
TJU-DGT Inc
dba The Lorenz Cafe 714-718 Lorenz Ave
Pittsburgh PA 15220
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/26/2029       20.6       18.7       19.3       0.01%  
Jihan Inc
dba ARCO AM/PM and Diana Inc dba Diana's Recycling 13886 Campo Road Jamul CA 91935
    Gasoline Stations       Term Loan       Prime plus 2.75%       6/26/2040       380.0       366.8       380.1       0.15%  
SofRep, Inc
dba Force 12 Media 930 Tahoe Blvd Suite 802-543 Incline Village NV 89451
    Other Information Services       Term Loan       Prime plus 2.75%       6/26/2025       66.3       56.5       51.6       0.02%  
E & G Enterprises LLC
dba Comfort Keepers 220 Middle Street Franklin VA 23851
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/26/2025       22.5       19.2       17.6       0.01%  
Ohs Auto Body, Inc.
dba Ohs Body Shop
3560 Highway
93 South Kalispell MT 59901
    Repair and Maintenance       Term Loan       7.4025%       6/25/2040       1,207.5       1,177.5       1,209.9       0.48%  
Wolf Enviro Interests, LLC
and Enviromax Services Inc 18002 Mueschke Road
Cypress TX 77433
    Administrative and Support Services       Term Loan       Prime plus 2.75%       6/25/2040       246.5       237.9       238.2       0.10%  
Amboy Group, LLC
dba Tommy's Moloney's 1 Amboy Avenue Woodbridge NJ 07095
    Food Manufacturing       Term Loan       Prime plus 2.75%       6/24/2025       454.0       392.3       399.5       0.16%  
Evinger PA One, Inc.
dba Postal Annex, Falcon 7661 McLaughlin Road Falcon CO 80831
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       6/24/2025       22.5       19.2       18.3       0.01%  
Richards Plumbing and Heating Co., Inc. dba Richards Mechanical 103 Dobbin Street
Brooklyn NY 11222
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/23/2040       551.7       532.6       567.1       0.23%  
RJI Services, Inc.
353 E Angeleno Suite
G Burbank CA 91502
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/23/2025       22.5       19.0       17.4       0.01%  
Real Help LLC
dba Real Help Decorative Concrete 2221 Broadway Street Buffalo NY 14212
    Administrative and Support Services       Term Loan       Prime plus 2.75%       6/22/2025       53.1       45.3       45.7       0.02%  
PM Cassidy Enterprises, Inc.
dba Junk King 960 Matley Lane, Suite 20 & 21,
Bldg B Reno NV 89502
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       6/19/2025       14.9       12.7       11.6       0.00%  
KRN Logistics, LLC,
Newsome Trucking, Inc 159 River Mill Drive
Ball Ground GA 30107
    Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2025       543.5       458.7       441.8       0.18%  
Inverted Healthcare Staffing of Florida LLC
dba Interim Healthcare Tra 111 N Pompano Beach Blvd. Pompano Beach FL 33062
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/18/2025       61.3       52.2       47.7       0.02%  
Flooring Liquidators Inc
and Flooring Liquidators of Mt Kisco LLC 267 Saw Mill River Road Elmsford NY 10523
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/17/2025       437.5       378.7       383.6       0.15%  
AM PM Properties, LLC
and AM PM Willington, LLC 1308 Stafford Road Storrs Mansfield CT 06268
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/17/2040       87.1       83.8       88.5       0.04%  
Nelson Sargsyan
dba HDA Trucking 11026 Ventura Blvd # 7 Studio City CA 91604
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       6/16/2025       130.5       111.2       101.7       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

163


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Mirage Plastering Inc
and Mpire LLC and Mpire II LLC 1802 W Grant Road Suite 114 Tucson AZ 85745
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/12/2040     $ 338.8     $ 133.9     $ 131.0       0.05%  
Bizzare Foods Inc
dba Trooper Foods 101-10 Foster Avenue Brooklyn NY 11236
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/12/2025       125.0       102.3       93.5       0.04%  
Anturio Marketing Inc
dba Logic Consulting 407-409 Rockaway Avenue
Brooklyn NY 11212
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/12/2040       290.3       280.2       298.3       0.12%  
Eldredge Tavern LLC
dba Gonyea's Tavern 150 Main Street Pascoag RI 02859
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/8/2040       56.3       54.3       57.8       0.02%  
Nicor LLC
dba Fibrenew Sacramento 161 Orrington Circle
Sacramento CA 95835
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/5/2022       13.8       10.6       9.6       0.00%  
Chitalian Fratelli LLC
dba Francesca Brick Oven Pizza and Pasta 234 Rock Road
Glen Rock NJ 07452
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/5/2025       16.0       13.4       12.2       0.00%  
ViAr Visual Communications, Inc. dba Fastsigns 281701 4721 University Way
NE Seattle WA 98105
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/5/2025       62.0       52.8       49.1       0.02%  
Video Vault & Tanning LLC
and Mosaic Salon LLC
W7003 Parkview Dr, Suite A & B Greenville WI 54942
    Rental and Leasing Services       Term Loan       Prime plus 2.75%       6/4/2040       90.5       87.5       93.2       0.04%  
Medworxs LLC
10901 W. Toller Drive
Littleton CO 80127
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/3/2025       125.0       106.5       98.0       0.04%  
DTM Parts Supply Inc.
31 Sageman St Mount
Vernon NY 10550
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/2/2025       62.7       54.8       50.1       0.02%  
XCESSIVE THROTTLE, INC
dba Jake's Roadhouse 5980 Lamar Street Arvada CO 80003
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/29/2025       8.2       7.0       6.4       0.00%  
Villela CPA PL
777 Brickell Ave, Suite
500 Miami FL 33131
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/27/2025       9.0       7.6       7.1       0.00%  
God is Good LLC
dba BurgerFi 4700 Acorn Drive Independence OH 44131
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/27/2025       67.2       12.6       12.8       0.01%  
Douglas Posey and Sally Watkinson dba Audrey's Farmhouse 2188 Brunswyck Road
Wallkill NY 12589
    Accommodation       Term Loan       Prime plus 2.75%       5/20/2040       174.1       167.8       176.1       0.07%  
Pen Tex Inc
dba The UPS Store 1167 W. Baltimore Pike Media PA 19063
    Administrative and Support Services       Term Loan       Prime plus 2.75%       5/20/2025       22.0       18.6       17.0       0.01%  
Capstone Pediatrics PLLC
and Capstone Healthcare Consulting LLC
310 25th Ave N. Street Ste. 201 Nashville TN 37203
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/15/2025       717.3       609.1       566.8       0.23%  
15 McArdle LLC
and No Other Impressions Inc 15 McArdle Street Rochester NY 14611
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/15/2040       257.1       247.8       251.6       0.10%  
E-Z Box Storage, Inc.
2326 Commerce Center Drive Rockville VA 23059
    Real Estate       Term Loan       Prime plus 2.75%       5/11/2025       89.3       69.9       71.2       0.03%  
Guard Dogs MFS LLC
9460 Mistwater Close
Roswell GA 30076
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/8/2025       65.0       55.0       50.6       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

164


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
George S Cochran DDS Inc
1066 Chelsea Avenue Napoleon OH 43545
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/7/2025     $ 130.0     $ 109.9     $ 100.7       0.04%  
South Park Properties LLC
and Midlothian Hardware LLC
dba Gril 4751 147th Street Midlothian IL 60445
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/6/2040       170.5       163.2       173.8       0.07%  
Matthew Taylor and Landon Farm LLC
6103 N Church St Greensboro NC 27455
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/4/2040       100.0       97.0       95.6       0.04%  
Cares Inc dba Dumpling Grounds Day Care Center 4508 Blakiston Street Philadelphia PA 19136     Social Assistance       Term Loan       Prime plus 2.75%       5/1/2040       81.9       78.1       83.1       0.03%  
Orchid Enterprises Inc
dba Assisting Hands of Sussex County 274 Spring Street
Newton NJ 07860
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/24/2025       15.0       12.6       11.5       0.00%  
Ragazza Restaurant Group, Inc.
dba Bambolina 288 Derby Street Salem MA 01970
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/21/2025       22.5       18.9       17.8       0.01%  
Diamond Solutions LLC
7655 E Gelding Drive, Suite B2 Scottsdale AZ 85260
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       4/21/2025       22.5       18.1       16.6       0.01%  
Giacchino Maritime Consultants Inc 5219 Tamiami Court Cape Coral FL 33904     Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/17/2025       22.5       18.9       17.3       0.01%  
Sound Coaching Inc
4749 Main Street Suite 3 Bridgeport CT 06606
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       4/14/2025       44.4       37.2       34.1       0.01%  
Carolina Beefs, LLC
dba Beef O'Brady's 3689 Renee Dr. Myrtle Beach SC 29579
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/13/2025       19.5       16.5       15.1       0.01%  
Faramarz Nikourazm
dba Car Clinic Center 10707 Shady Trail Dallas TX 75220
    Repair and Maintenance       Term Loan       Prime plus 2.75%       4/3/2040       73.8       70.8       73.2       0.03%  
Advance Case Parts RE Holdings LLC
and Advance Case Parts Inc 12485-12489 NW 44th Street Coral Springs FL 33071
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/31/2040       758.3       708.9       715.5       0.29%  
T and B Boots Inc
dba Takken's Shoes 670 Marsh Street San Luis Obispo CA 93401
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       3/31/2025       807.8       130.3       132.6       0.05%  
HAVANA CENTRAL NJ1, LLC
dba Havana Central 55 Parsonage Road Edison NJ 08837
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/31/2025       250.0       218.9       222.1       0.09%  
Mid-South Lumber Co.
of Northwest Florida, Inc. 717 W 11th Street
Panama City FL 32402
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/31/2040       428.8       411.7       413.5       0.17%  
Copper Beech Financial Group LLC
18 Fulton Drive Mt Laurel
NJ 08054
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       3/30/2025       125.0       103.9       100.3       0.04%  
Delta Aggregate LLC
9025-9775 Church Road
Felda FL 33930
    Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       3/30/2025       90.0       79.5       80.9       0.03%  
Sunset Marine Resort LLC
and GoXpeditions LLC
and Lavon Gomes and Trac 40 Buzzard Ridge Road
Sequim WA 98382
    Accommodation       Term Loan       Prime plus 2.75%       3/27/2040       301.8       289.8       308.4       0.12%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

165


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Foresite Realty Partners LLC
and Foresite Real Estate Holdings LLC
5600 N. River Road #925 Rosemont IL 60018
    Real Estate       Term Loan       Prime plus 2.75%       3/27/2025     $ 1,238.2     $ 1,029.6     $ 940.9       0.38%  
Shellhorn and Hill Inc
dba Total Fleet Service 501 South Market St
Wilmington DE 19801
    Nonstore Retailers       Term Loan       Prime plus 2.75%       3/27/2040       1,040.3       995.1       999.4       0.40%  
Shorr Enterprises Inc
dba New Design Furniture Manufacturers 3033 NW 28 Street Lauderdale Lakes FL 33311
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       3/27/2025       106.5       88.6       86.4       0.03%  
Geo Los Angeles LLC
dba Geo Film Group 7625 Hayvenhurst Avenue #49 Van Nuys CA 91406
    Rental and Leasing Services       Term Loan       Prime plus 2.75%       3/26/2025       130.0       108.2       105.0       0.04%  
Joyce Outdoor Advertising NJ LLC
and Joyce Outdoor Advertising LLC
800 James Avenue Scranton PA 18510
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/26/2040       54.0       51.9       54.8       0.02%  
Zero-In Media Inc
1123 Broadway Suite 704 New York NY 10010
    Data Processing, Hosting, and Related Services       Term Loan       Prime plus 2.75%       3/25/2025       22.5       18.7       17.1       0.01%  
Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr 4901 Alpha Road Farmers
Branch TX 75244
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       3/25/2040       810.0       777.9       825.0       0.33%  
Loriet LLC
906 Blvd of the Arts Sarasota FL 34236
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/24/2025       12.0       10.0       9.1       0.00%  
Shelton Incorporated dba Mrs. Winners 4509 N. Henry Blvd. Stockbridge GA 30281     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/20/2040       112.5       108.0       114.8       0.05%  
Jaymie Hazard
dba Indigo Hair Studio and Day Spa 2016 Warwick Avenue Warwick RI 02889
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/20/2040       42.9       41.3       42.6       0.02%  
R & R Security and Investigations Inc dba Pardners Lake Buchanan 15615 State Route 29 Buchanan Dam TX 78609     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/19/2040       85.4       82.1       87.3       0.03%  
MMS Realty, LLC
and Molecular MS Diagnostics LLC
1224 Greenwich Avenue Warwick RI 02886
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/18/2040       160.7       154.4       158.4       0.06%  
Royal Crest Motors LLC
769 Amesbury Rd Haverhill MA 01830
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/16/2040       91.2       87.6       90.9       0.04%  
BND Sebastian Limited Liability Company and Sebastian Fitness L 345 Sebastian Blvd Sebastian FL 32958     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/16/2040       172.5       165.7       173.6       0.07%  
Douglas Printy Motorsports, Inc. dba Blackburn Trike 1410 Medina Rd Medina OH 44256     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/9/2040       191.8       184.2       189.0       0.08%  
Luigi's on Main LLC
and Luigi's Main Street Pizza Inc 491 Montauk Highway Eastport NY 11941
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/4/2025       11.3       9.4       9.5       0.00%  
Baystate Firearms and Training, LLC
215 Newbury Street Peabody MA 01960
    Educational Services       Term Loan       Prime plus 2.75%       2/27/2025       63.4       52.1       48.0       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

166


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Calhoun Satellite Communications Inc and Transmission Solutions Group 1914 Tigertail Blvd Dania FL 33004     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/27/2025     $ 952.8     $ 811.7     $ 764.6       0.31%  
Kingseal LLC
dba Desoto Health and Rehab Center 475 Nursing Home Drive Arcadia FL 34266
    Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       2/26/2040       1,250.0       1,198.4       1,275.4       0.51%  
Pace Motor Lines, Inc. 1425 Honeyspot Road Extension Stratford CT 06615     Truck Transportation       Term Loan       Prime plus 2.75%       2/26/2025       66.2       54.5       55.5       0.02%  
Nelson Financial Services LLC 20015 N 83rd Place Scottsdale AZ 85255     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/24/2025       12.4       10.3       9.4       0.00%  
Kiddie Steps 4 You Inc.
1700 West 63rd St. Chicago IL 60636
    Social Assistance       Term Loan       Prime plus 2.75%       2/19/2040       61.7       59.0       60.3       0.02%  
Triangle Trash LLC
dba Bin There Dump That 188 Northbend Drive Youngsville NC 27596
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       2/18/2025       74.4       61.2       58.8       0.02%  
Silva Realty Holdings, LLC
and MF-Silva Enterprises, Inc. dba T 98 Nash Road New Bedford MA 02746
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/11/2040       171.6       164.6       168.4       0.07%  
740 Barry Street Realty LLC
and Wild Edibles Inc 740 Barry Street Bronx NY 10474
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       2/10/2040       492.5       472.1       502.5       0.20%  
Kostekos Inc
dba New York Style Pizza 10 South King Street Gloucester NJ 08030
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/6/2040       66.3       63.6       65.8       0.03%  
DuCharme Realty LLC
and DuCharme Enterprises LLC
dba Specialty 1717 Highway 200 Noxon MT 59853
    Wood Product Manufacturing       Term Loan       Prime plus 2.75%       2/2/2040       225.1       215.8       219.2       0.09%  
Limameno LLC
dba Sal's Italian Ristorante 861 Yamato Rd, Bay #2 Boca Raton FL 33431
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/23/2025       83.3       68.1       63.5       0.03%  
Palmabak Inc
dba Mami Nora's 4614 Capital Blvd Raleigh NC 27604
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/22/2025       21.5       14.2       14.4       0.01%  
Jung Design Inc
10857 Pine Bluff Drive Fishers IN 46037
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/20/2022       8.4       6.0       5.4       0.00%  
Grand Blanc Lanes, Inc.
and H, H and H, LLC
5301 S Saginaw Rd Flint MI 48507
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/31/2039       133.0       127.4       137.8       0.06%  
Bear Creek Entertainment, LLC
dba The Woods at Bear Creek 3510 Bear Creek Road Franklinville NY 14737
    Accommodation       Term Loan       Prime plus 2.75%       12/30/2024       106.3       86.2       88.7       0.04%  
Evans and Paul LLC
140 Dupont Street Plainview NY 11803
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/30/2024       223.7       181.3       185.6       0.07%  
FHJE Ventures LLC
and Eisenreich II Inc dba Breakneck Tavern 273 Mars Valencia Road Mars PA 16046
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/30/2039       245.5       235.9       250.8       0.10%  
First Prevention and Dialysis Center, LLC 17940 NW 27th Avenue Miami Gardens FL 33056     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/30/2024       273.3       234.0       238.2       0.10%  
Bowlerama Inc
3031 New Castle Ave New Castle DE 19720
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/24/2039       1,202.5       1,150.5       1,247.1       0.50%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

167


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
The Lodin Group LLC
and Lodin Health Imaging Inc
dba Highlands Breast 114-115 Medical Center Avenue Sebring FL 33870
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/23/2039     $ 530.3     $ 506.6     $ 537.7       0.21%  
401 JJS Corporation and G. Randazzo Corporation 401 – A 34th Street Ocean City
NJ 08226
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/23/2039       473.4       457.1       492.9       0.20%  
Thermoplastic Services Inc
and Paragon Plastic Sheet, Inc 1700 W 4th Street Dequincy LA 70633
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       12/23/2039       500.0       477.7       517.8       0.21%  
Atlantis of Daytona LLC
and Ocean Club Sportswear Inc 2058 S Atlantic Avenue Daytona Beach FL 32118
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       12/23/2039       240.0       206.2       223.5       0.09%  
Beale Street Blues Company-West Palm Beach, LLC
dba Lafayette Music Ha
550 South Rosemary Avenue Suite
236 West Palm Beach
FL 33401
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       12/22/2024       187.5       151.9       152.3       0.06%  
MM and M Management Inc
dba Pizza Artista 5409 Johnston Street Lafayette LA 70503
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/19/2025       46.3       38.5       38.4       0.02%  
B.S. Ventures LLC
dba Dink's Market 48649 Highway 58 Oakridge
OR 97463
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/19/2039       53.8       51.3       55.7       0.02%  
The Jewelers Inc.
dba The Jewelers of Las Vegas 2400 Western Avenue Las Vegas NV 89102
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       12/19/2024       1,250.0       1,013.6       1,005.4       0.40%  
B & W Towing, LLC
and Boychucks Fuel LLC
701 Addison Road Painted Post NY 14870
    Repair and Maintenance       Term Loan       Prime plus 2.75%       12/17/2039       164.5       158.5       169.1       0.07%  
All American Games, LLC
and Sportslink – The Game, LLC
100 Forge Way Rockaway NJ 07866
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       12/10/2024       400.0       324.1       325.5       0.13%  
Kemmer LLC
and Apples Tree Top Liquors LLC
1300 S Jackson Street Salem IN 47167
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/4/2039       138.4       132.2       140.7       0.06%  
The Red Pill Management, Inc.
dba UFC Gym Matthews 1916 Sardis Road North Charlotte NC 28270
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       11/26/2024       54.3       44.3       44.4       0.02%  
Teamnewman Enterprises LLC
dba Newmans at 988 and John H. Newman 988 Hemlock Street Cannon Beach OR 97110
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/25/2039       148.7       142.9       153.0       0.06%  
DeRidder Chiropractic LLC
1606 North Pine St DeRidder LA 70634
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/25/2024       13.2       10.6       10.9       0.00%  
Modern Manhattan LLC
250 Park Ave South New York NY 10003
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       11/25/2024       220.0       176.7       175.5       0.07%  
Legacy Estate Planning Inc
dba American Casket Enterprises 2176 Route 119 North Greensburg PA 15601
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/21/2024       42.0       33.7       33.4       0.01%  
J&D Resources, LLC
dba Aqua Science 1923 E. 5th Street Tempe AZ 85281
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/21/2024       767.9       610.8       607.6       0.24%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

168


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
DC Real LLC
and DC Enterprises LTD dba Lakeview True Value 318 North F Street Lakeview OR 97630
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/20/2039     $ 119.4     $ 114.4     $ 123.3       0.05%  
MLM Enterprises LLC
and Demand Printing Solutions Inc 3900 Rutledge Road NE Albuquerque NM 87109
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       11/18/2024       70.5       56.6       57.5       0.02%  
JEJE Realty LLC
and La Familia Inc 431 Winthrop Street Taunton MA 02780
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/10/2039       205.7       173.5       186.4       0.07%  
Joey O's LLC
and Jennifer Olszewski 407 Rohrmann Road Darlington PA 16115
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/7/2024       13.1       0.7       0.7       0.00%  
Heartland American Properties LLC
and Skaggs RV Outlet LLC
301 Commerce Drive Elizabethtown KY 42701
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       10/31/2039       479.0       456.0       491.0       0.20%  
Golden Transaction Corporation dba Bleh Sunoco 2990 Rayford St Jacksonville FL 32205     Gasoline Stations       Term Loan       Prime plus 2.75%       10/30/2039       156.7       149.3       161.2       0.06%  
Seelan Inc dba Candleridge Market 4000 Sycamore School Road Fort Worth TX 76133     Gasoline Stations       Term Loan       Prime plus 2.75%       10/27/2039       90.5       86.2       92.2       0.04%  
Navdeep B Martins and Busy Bubbles LLC
dba Wishy Washy 608 Plainfield Street Providence RI 02909
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/24/2039       89.0       84.9       90.3       0.04%  
One Hour Jewelry Repair Inc
6544 Springfield Mall
Springfield VA 22150
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/14/2024       20.6       16.4       16.2       0.01%  
DNT Storage and Properties LLC
38 Old National Pike West Alexander PA 15376
    Real Estate       Term Loan       Prime plus 2.75%       10/10/2039       101.7       96.9       104.6       0.04%  
Capitol Waste and Recycling Services LLC
321 Dering Ave Columbus OH 43207
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       10/10/2024       257.8       205.2       206.4       0.08%  
Sound Manufacturing Inc
51 Donnelley Road Old Saybrook CT 06475
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/10/2024       187.5       149.3       149.5       0.06%  
Return to Excellence, Inc.
dba The Waynesville Inn Golf & Spa 176 Country Club Drive Waynesville NC 28786
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       10/10/2039       1,250.0       1,204.6       1,305.8       0.52%  
Smith Spinal Care Center P.C. and James C. Smith 1103 Russell Parkway Warner Robins
GA 31088
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/8/2039       60.0       57.1       61.4       0.02%  
Doctors Express Management of Central Texas LLC
3614 SW HK Dodgen Loop, Ste F Temple TX 76504
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/8/2024       105.0       73.9       75.6       0.03%  
Michael Rey Jr. and Lynn J. Williams and GIG Petcare dba Hickory 900 Alpine Road Bridgeville PA 15017     Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/3/2039       126.9       118.6       127.9       0.05%  
Sumad LLC
dba BrightStar Care of Encinitas 9606 Tierra Grande St San Diego CA 92126
    Administrative and Support Services       Term Loan       Prime plus 2.75%       10/2/2024       92.5       42.3       43.5       0.02%  
Roccos LLC
and Sullo Pantalone Inc dba Rocco's 79 Beach Road Units B13 and B14 Vineyard Haven MA 02568
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2039       255.8       243.0       259.4       0.10%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

169


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Keller Holdings LLC
and David H Keller III and Carie C Keller 1469 River Road Upper Black Eddy PA 18972
    Scenic and Sightseeing Transportation       Term Loan       Prime plus 2.75%       9/30/2039     $ 100.0     $ 95.0     $ 102.8       0.04%  
Orange County Insurance Brokerage Inc
dba Beaty Insurance Agency 3410 Highway 10 West (aka Lutcher Dr) Orange TX 77632
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       9/29/2039       325.1       309.9       335.7       0.13%  
The Woods at Bear Creek LLC
and Bear Creek Entertainment LLC
dba The 3510 Bear Creek Road Franklinville NY 14737
    Accommodation       Term Loan       Prime plus 2.75%       9/29/2039       513.3       489.6       530.4       0.21%  
Colts V LLC
and Nowatzke Service Center, Inc dba Nowatzke Truck & Trai 6900 Whitmore Lake Rd Whitmore Lake MI 48189
    Repair and Maintenance       Term Loan       Prime plus 2.75%       9/26/2039       601.8       577.6       621.5       0.25%  
Keys Phase One LLC
dba The Grand Guesthouse 1116 Grinnell Street Key West FL 33040
    Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       736.2       699.7       753.9       0.30%  
Gordon E Rogers dba Stonehouse Motor Inn 162 Danielson Pike Foster RI 02825     Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       57.5       54.6       59.2       0.02%  
Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud 2646 South Road Poughkeepsie NY 12601     Gasoline Stations       Term Loan       Prime plus 2.75%       9/26/2024       22.5       17.7       17.7       0.01%  
6 Price Avenue, LLC
and Pauley Tree & Lawn Care, Inc 6 Price Avenue
Norwalk CT 06840
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/24/2039       452.5       432.6       457.4       0.18%  
North Columbia LLC
and Loop Liquor and Convenience Store LLC
26 Business Loop 70 E Columbia MO 65203
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/24/2039       159.2       151.3       163.0       0.07%  
R A Johnson Inc
dba Rick Johnson Auto and Tire 4499 Corporate Square Naples FL 34104
    Repair and Maintenance       Term Loan       Prime plus 2.75%       9/23/2039       301.2       286.3       310.1       0.12%  
Andrene's LLC
dba Andrene's Caribbean Soul Food Carry Out 308 Kennedy Street NW Washington
DC 20011
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/23/2024       37.8       26.5       26.2       0.01%  
Ryan Crick and Pamela J. Crick
and Crick Enterprises Inc 3390 W. Andrew Johnson Hwy Greeneville TN 37743
    Repair and Maintenance       Term Loan       Prime plus 2.75%       9/17/2039       145.5       138.3       149.8       0.06%  
Modern Leather Goods Repair Shop Inc
2 West 32nd Street, Ste 401 New York NY 10001
    Repair and Maintenance       Term Loan       Prime plus 2.75%       9/17/2024       58.7       45.9       45.3       0.02%  
Tavern Properties LLC
and Wildwood Tavern LLC
6480 West Touhy Avenue Niles IL 60714
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/15/2039       425.0       406.6       437.4       0.17%  
RDT Enterprises LLC
2134 Helton Dr Florence AL 35630
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/15/2027       162.7       138.9       143.9       0.06%  
Animal Intrusion Prevention Systems Holding Company, LLC
3330 N Beach Street Fort Worth TX 76111
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/15/2024       272.5       215.8       216.6       0.09%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

170


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
KW Zion, LLC
and Key West Gallery Inc 601 Duval Street Key West
FL 33040
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/12/2039     $ 1,250.0     $ 1,187.9     $ 1,279.7       0.51%  
Indy East Smiles Youth Dentistry LLC
dba Prime Smile East 5430 E. Washington Street Indianapolis IN 46219
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/11/2024       630.2       497.2       492.1       0.20%  
B&P Diners LLC
dba Engine House Restaurant 71 Lafayette Street, Unit 1 Salem MA 01970
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/10/2024       80.0       63.1       62.4       0.02%  
Feel The World Inc
dba Xero Shoes and Invisible Shoes 100 Technology Drive, Suite 315C Broomfield CO 80021
    Leather and Allied Product Manufacturing       Term Loan       Prime plus 2.75%       9/5/2024       51.9       40.9       40.7       0.02%  
Delta Aggregate LLC
9025-9775 Church Road Felda FL 33930
    Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       8/28/2039       911.2       859.0       930.5       0.37%  
Lamjam LLC
Goldsmith Lambros Inc 7137 Little River Turnpike Annandale VA 22003
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       8/27/2024       133.8       106.2       109.2       0.04%  
Orange County Cleaning Inc
15601 Producer Lane, Unit P Huntington Beach CA 92649
    Administrative and Support Services       Term Loan       Prime plus 2.75%       8/27/2024       41.2       28.9       28.5       0.01%  
Qycell Corporation
600 S Etiwanda Avenue Ontario
CA 91761
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/26/2024       120.9       94.6       95.3       0.04%  
Atlas Auto Body Inc
dba Atlas Auto Sales 20 Providence Street West Warwick RI 02893
    Repair and Maintenance       Term Loan       Prime plus 2.75%       8/22/2039       51.6       48.9       52.3       0.02%  
Katie Senior Care LLC
dba Home Instead Senior Care 222E Eufaula St Ste 220 Norman OK 73069
    Social Assistance       Term Loan       Prime plus 2.75%       8/15/2024       124.3       97.1       95.9       0.04%  
Alpha Preparatory Academy LLC
4462 Mink Livsey Road Snellville GA 30039
    Social Assistance       Term Loan       Prime plus 2.75%       8/15/2039       145.2       138.3       149.8       0.06%  
S&P Holdings of Daytona LLC
S&P Corporation of Daytona Beach db 901 Main St Daytona Beach FL 32118
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       8/15/2039       433.5       394.7       427.6       0.17%  
Hamer Road Auto Salvage, LLC
and Scott T. Cook and Nikki J. Cook 10463 Hamer Rd Georgetown OH 45121
    Motor Vehicle and Parts Dealers       Term Loan       6%       8/8/2039       188.4       177.1       191.8       0.08%  
Almost Home Property LLC
and Almost Home Daycare LLC
35 Copps Hill Road Ridgefield CT 06877
    Social Assistance       Term Loan       Prime plus 2.75%       8/7/2039       715.8       680.0       734.6       0.29%  
AGV Enterprises LLC
dba Jet's Pizza #42 27897 Orchard Lake Road Farmington Hills MI 48334
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/31/2024       54.8       42.5       42.2       0.02%  
iFood, Inc.
dba Steak N Shake 5900 Duraleigh Road Raleigh NC 27612
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/31/2024       379.1       305.0       307.4       0.12%  
575 Columbus Avenue Holding Company, LLC
and LA-ZE LLC
dba EST EST EST 575 Columbus Avenue New Haven CT 06519
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/30/2039       22.5       20.8       22.5       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

171


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Honeyspot Investors LLP and Pace Motor Lines Inc 1425 Honeyspot Road Extension Stratford CT 06615     Truck Transportation       Term Loan       Prime plus 2.75%       7/24/2039     $ 150.0     $ 142.0     $ 153.8       0.06%  
Miss Cranston Diner II, LLC
and Miss Cranston II Realty LLC
15 Stonebridge
Cranston RI 02921
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/17/2039       100.0       96.6       103.8       0.04%  
AMG Holding, LLC
and Stetson Automotive, Inc 309 Route 9 Waretown
NJ 08758
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/30/2039       208.0       197.0       213.2       0.09%  
Highway Striping Inc
10724 SW 188th St. Miami FL 33157
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/30/2024       53.1       40.7       40.8       0.02%  
Honeyspot Investors LLP
and Pace Motor Lines Inc 1425 Honeyspot Road Extension Stratford CT 06615
    Truck Transportation       Term Loan       Prime plus 2.75%       6/30/2039       875.3       828.7       896.7       0.36%  
iFood, Inc.
dba Steak N Shake 2840 E Millbrook Rd Raleigh
NC 27604
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2039       629.8       596.0       631.0       0.25%  
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP 4920 Lincoln Avenue Route
53 Lisle IL 60532
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/30/2024       100.0       76.7       78.8       0.03%  
FHJE Ventures LLC
and Eisenreich II Inc. dba Breakneck Tavern 273 Mars Valencia Rd Mars PA 16046
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/31/2018       321.7       304.2       302.6       0.12%  
Zinger Hardware and General Merchant Inc
4001 North Lamar Blvd Suite 300 Austin TX 78756
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       6/26/2024       110.5       84.8       85.9       0.03%  
JPM Investments LLC
and Carolina Family Foot Care P.A. 122 N. Main Street Fuquay Varina NC 27526
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/26/2039       136.1       132.6       142.7       0.06%  
Nikobella Properties LLC
and JPO Inc dba Village Car Wash 1372 South US Route 12 Fox Lake IL 60020
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/25/2039       476.3       450.9       484.8       0.19%  
Big Sky Plaza LLC
and Strickland, Incorporated dba Livingston True Val 1313 West Park Street #1 Livingston MT 59047
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       6/20/2039       233.4       220.6       236.9       0.09%  
510 ROK Realty LLC
dba ROK Health and Fitness and Robert N. D'urso 510 Ocean Avenue East Rockaway
NY 11518
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/19/2024       332.0       255.6       262.5       0.10%  
Nirvi Enterprises LLC
dba Howard Johnson/Knights Inn 5324 Jefferson Davis Highway Fredericksburg VA 22408
    Accommodation       Term Loan       Prime plus 2.75%       6/17/2039       920.3       869.8       941.6       0.38%  
Hotels of North Georgia LLC
dba Comfort Inn and Suites 83 Blue Ridge Overlook Blue Ridge GA 30513
    Accommodation       Term Loan       Prime plus 2.75%       6/17/2039       837.5       791.6       856.9       0.34%  
Global Educational Delivery Services LLC
2002 Grassy Hollow Dr. Toms River NJ 08755
    Educational Services       Term Loan       Prime plus 2.75%       6/16/2024       60.0       46.6       47.9       0.02%  
Rainbow Dry Cleaners
850 S. Main Street, Suite B Delphos OH 45833
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/13/2024       122.5       94.0       94.2       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

172


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
NVR Corporation
dba Discount Food Mart 132 Gloster Road NW Lawrenceville GA 30044
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/11/2039     $ 68.3     $ 62.5     $ 67.7       0.03%  
Sico & Walsh Insurance Agency Inc and The AMS Trust 106 Concord Avenue Belmont MA 02478     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       6/6/2039       250.0       88.5       95.8       0.04%  
Sujata Inc
dba Stop N Save Food Mart and Dhruvesh Patel 15637 St Clair Ave Cleveland OH 44110
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/3/2024       22.5       17.3       17.2       0.01%  
Long Island Barber + Beauty LLC
266 Greenwich Street Hempstead NY 11550
    Educational Services       Term Loan       Prime plus 2.75%       6/2/2039       55.5       52.5       56.2       0.02%  
CJR LLC
and PowerWash Plus, Inc. 59 South US Highway 45 Grayslake IL 60030
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/30/2024       53.0       40.3       41.1       0.02%  
Pocono Coated Products, LLC
100 Sweetree Street Cherryville NC 28021
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/30/2024       22.5       17.1       17.5       0.01%  
R. A. Johnson, Inc.
dba Rick Johnson Auto & Tire 4499 Corporate Square Naples FL 34104
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       5/29/2039       943.8       890.5       963.9       0.39%  
EGM Food Services Inc
dba Gold Star Chili 2100 Medical Arts Drive Hebron KY 41048
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/29/2024       19.2       14.6       14.6       0.01%  
Wilton Dental Care P.C.
134 Old Ridgefield Road Wilton CT 06897
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/29/2024       128.1       99.3       98.4       0.04%  
Jonesboro Health Food Center LLC
1321 Stone Street Jonesboro AR 72401
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       5/27/2024       60.0       45.6       45.1       0.02%  
Bay State Funeral Services, LLC
and Riley Funeral Home Inc 171 Humboldt Avenue Dorchester MA 02121
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/21/2039       134.9       127.6       138.2       0.06%  
Hae M. and Jin S. Park
dba Buford Car Wash 1163 Buford Highway Sugar Hill GA 30518
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/15/2039       166.5       156.4       166.9       0.07%  
Moochie's LLC
358 W. Army Trail Road Ste. 140 Bloomingdale IL 60108
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2024       100.5       77.3       76.8       0.03%  
The River Beas LLC
and Punam Singh 11704 Centurion Way Potomac MD 20854
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/8/2039       90.2       85.4       91.7       0.04%  
AS Boyals LLC
dba Towne Liquors 117 South Broad Street Woodbury City NJ 08096
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       4/29/2039       117.5       110.7       119.8       0.05%  
Gerami Realty, LC
Sherrill Universal City Corral, LP dba Golden 2301 Pat Booker Rd Universal City TX 78148
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/23/2027       78.8       65.2       67.8       0.03%  
Complete Body & Paint, Inc.
32220 Michigan Ave Wayne MI 48184
    Repair and Maintenance       Term Loan       Prime plus 2.75%       4/23/2039       20.8       19.6       21.3       0.01%  
Island Wide Realty LLC
and Long Island Partners, Inc.
dba Realty Execu 201-203-205 West Merrick Road Valley Stream NY 11580
    Real Estate       Term Loan       Prime plus 2.75%       4/22/2039       103.8       97.8       105.9       0.04%  
Wilshire Media Systems Inc
1412 N Moorpark Road Thousand Oaks CA 91360
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/17/2024       186.2       140.3       139.6       0.06%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

173


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
1899 Tavern & Tap LLC
and Ale House Tavern & Tap LLC
1899 State Route 35 South Amboy NJ 08879
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/9/2039     $ 137.5     $ 128.5     $ 138.5       0.06%  
Little People's Village II LLC
and Iliopoulos Realty LLC
6522 Haverford Avenue Philadelphia PA 19151
    Social Assistance       Term Loan       Prime plus 2.75%       3/31/2039       92.1       87.1       92.6       0.04%  
Dantanna's Tavern LLC
6615 Roswell Road NE #30 Sandy Springs GA 30328
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2024       164.3       124.7       124.9       0.05%  
Hodges Properties LLC
and Echelon Enterprises Inc
dba Treads Bicycle 16701 E. Iliff Avenue Aurora CO 80013
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       3/31/2039       449.0       422.1       454.3       0.18%  
RDT Enterprises, LLC
2134 Helton Drive Florence AL 35630
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2028       141.2       120.4       126.0       0.05%  
Little People's Village II LLC
and Iliopoulos Realty LLC
6522 Haverford Avenue Philadelphia PA 19151
    Social Assistance       Term Loan       Prime plus 2.75%       3/31/2039       101.5       96.1       102.2       0.04%  
Eagle Aggregate Transportation, LLC
and Eagle Pneumatic Transport LLC
4401 N I-35 #113 Denton TX 76207
    Truck Transportation       Term Loan       Prime plus 2.75%       3/31/2024       750.0       558.8       566.9       0.23%  
Kemmer, LLC
and Pitts Package Store, Inc.
201 S. Main Street Salem IN 47167
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/31/2039       117.5       110.6       116.6       0.05%  
Wilban LLC
454 US Highway 22 Whitehouse Station NJ 08889
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/28/2039       427.5       402.7       432.7       0.17%  
Lake Area Autosound LLC
and Ryan H. Whittington 2328 E. McNeese Street Lake Charles LA 70607
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       7/28/2039       125.0       119.2       127.8       0.05%  
Hascher Gabelstapler Inc
80 Cole Avenue Akron OH 44301
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/26/2024       143.2       108.1       109.8       0.04%  
Knowledge First Inc
dba Magic Years of Learning and Kimberly Knox 575 North Harris St Athens GA 30601
    Social Assistance       Term Loan       Prime plus 2.75%       3/21/2039       145.0       136.5       145.7       0.06%  
Cormac Enterprises and Wyoming Valley Beverage Incorporated
63 S Wyoming Ave Edwardsville PA 18704
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/20/2039       110.8       104.3       112.8       0.05%  
Kinisi, Inc.
dba The River North UPS Store 301 West Grand Ave Chicago IL 60654
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/18/2024       41.2       23.1       23.5       0.01%  
SE Properties 39 Old Route 146, LLC
SmartEarly Clifton Park LLC
39 Old Route 146 Clifton Park NY 12065
    Social Assistance       Term Loan       Prime plus 2.75%       3/14/2039       408.0       384.6       416.1       0.17%  
Tortilla King Inc.
249 23rd Avenue Moundridge KS 67107
    Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2039       216.9       204.7       217.6       0.09%  
Tortilla King, Inc.
249 23rd Avenue Moundridge KS 67107
    Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2029       1,033.1       901.0       928.0       0.37%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

174


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Bowl Mor, LLC
dba Bowl Mor Lanes/Spare Lounge, Inc.
201 Highland Ave East Syracuse NY 13057
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/13/2039     $ 223.5     $ 210.1     $ 227.3       0.09%  
Avayaan2 LLC
dba Island Cove 2500 W. Fort Macon Rd. Atlantic Beach NC 28512
    Gasoline Stations       Term Loan       Prime plus 2.75%       3/7/2039       157.5       148.0       159.1       0.06%  
Onofrio's Fresh Cut Inc
222 Forbes Ave New Haven CT 06512
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/6/2024       75.0       55.9       57.1       0.02%  
R & R Boyal LLC
dba Cap N Cat Clam Bar and Little Ease Tavern 3111 and 3135 Delsea Drive Franklinville NJ 08322
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/28/2039       417.5       391.9       419.5       0.17%  
Summit Beverage Group LLC
211 Washington Ave Marion VA 24354
    Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       2/28/2024       350.6       258.7       262.0       0.10%  
952 Boston Post Road Realty, LLC
and HNA LLC
dba Styles International 952 Boston Post Road Milford CT 06460
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2039       211.0       198.0       211.4       0.08%  
Choe Trade Group Inc
dba Rapid Printers of Monterey 201 Foam Street Monterey CA 93940
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       2/28/2024       159.2       117.5       120.6       0.05%  
Faith Memorial Chapel LLC
600 9th Avenue North Bessemer AL 35020
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2039       214.2       201.3       214.8       0.09%  
96 Mill Street LLC,
Central Pizza LLC
and Jason Bikakis George Bikaki 96 Mill Street Berlin CT 06037
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/12/2039       141.3       133.1       144.0       0.06%  
JWB Industries, Inc.
dba Carteret Die Casting 74 Veronica Ave
Somerset NJ 08875
    Primary Metal Manufacturing       Term Loan       Prime plus 2.75%       2/11/2024       280.0       206.5       205.7       0.08%  
986 Dixwell Avenue Holding Company, LLC
and Mughali Foods, LLC
db 986 Dixwell Avenue Hamden CT 06510
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/7/2039       99.1       93.4       100.3       0.04%  
Awesome Pets II Inc
dba Mellisa's Pet Depot 8 Sarah's Way Fairhaven MA 02719
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       2/7/2024       83.2       62.1       62.0       0.02%  
Sarah Sibadan
dba Sibadan Agency 102-05 101st Avenue Ozone Park NY 11416
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       1/27/2039       129.4       121.2       130.7       0.05%  
JDR Industries Inc
dba CST-The Composites Store, JetCat USA 1010 W Avenue S 14 Palmdale CA 93551
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       1/21/2024       140.3       102.4       102.9       0.04%  
Icore Enterprises Inc
dba Air Flow Filters Inc
151 W 24th St
Hialeah FL 33010
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       1/15/2024       21.8       15.9       16.3       0.01%  
Carl R. Bieber, Inc.
dba Bieber Tourways/Bieber Transportation/Bieber 320 Fair Street Kutztown PA 19530
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2027       712.5       596.1       623.7       0.25%  
Nutmeg North Associates LLC
Steeltech Building Products Inc
636 Nutmeg Road North South Windsor CT 06074
    Construction of Buildings       Term Loan       Prime plus 2.75%       12/31/2038       897.7       857.6       929.5       0.37%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

175


 
 

TABLE OF CONTENTS

               
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 One Amboy Avenue Woodbridge NJ 07095
    Food Manufacturing       Term Loan       Prime plus 2.75%       12/27/2023     $ 656.2     $ 489.9     $ 504.6       0.20%  
Shane M. Howell and Buck Hardware and Garden Center, LLC
1007 Lancaster Pike Quarryville PA 17566
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       12/27/2038       322.5       301.9       327.1       0.13%  
KK International Trading Corporation 219 Lafayette Drive Syosset NY 11791     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/23/2028       190.0       160.4       168.2       0.07%  
Kurtis Sniezek dba Wolfe's Foreign Auto 712 5th Street New Brighton PA 15066     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/20/2038       88.9       83.1       90.5       0.04%  
Mosley Auto Group LLC
dba America's Automotive 6211 Denton Highway Haltom City TX 76148
    Repair and Maintenance       Term Loan       Prime plus 2.75%       12/20/2038       221.5       207.0       225.2       0.09%  
Lefont Theaters Inc.
1266 W. Paces Ferry Rd, Ste 613 Atlanta GA 30327
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       12/19/2023       14.4       10.4       10.6       0.00%  
PLES Investements, LLC
and John Redder, Pappy Sand & Gravel, Inc., T 2040 Dowdy Ferry Dallas TX 75218
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/19/2038       555.3       519.0       563.0       0.22%  
TAK Properties LLC
and Kinderland Inc
1157 Commerce Avenue Longview WA 98632
    Social Assistance       Term Loan       Prime plus 2.75%       12/18/2038       405.0       379.1       411.4       0.16%  
TOL LLC
dba Wild Birds Unlimited
320 W. Main St. Avon
CT 06001
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       12/13/2023       18.0       13.4       13.7       0.01%  
920 CHR Realty LLC
V. Garofalo Carting Inc
920 Crooked Hill Brentwood NY 11717
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       12/10/2038       418.1       391.2       426.0       0.17%  
DKB Transport Corp 555 Water Works Road
Old Bridge NJ 08857
    Truck Transportation       Term Loan       Prime plus 2.75%       12/5/2038       138.8       129.7       141.2       0.06%  
Firm Foundations Inc
David S Gaitan Jr and Christopher K Daigle 1455 S Richland Creek Rd Sugar HIll GA 30518
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/3/2038       104.3       97.4       105.3       0.04%  
Spectrum Development LLC
and Solvit Inc
& Solvit North, Inc
65 Farmington Valley Drive Plainville CT 06062
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/2/2023       387.3       281.2       287.9       0.12%  
BVIP Limousine Service LTD 887 W Liberty Medina OH 44256     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       11/27/2038       76.5       71.4       77.6       0.03%  
Eco-Green Reprocessing LLC
and Denali Medical Concepts, LLC
2065 Peachtree Industrial Ct., Ste. 203 Chamblee GA 30341
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       11/27/2023       67.2       48.1       49.0       0.02%  
Wallace Holdings LLC
GFA International Inc
1215 Wallace Dr Delray Beach FL 33444
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.5%       11/25/2023       125.0       89.0       90.1       0.04%  
AcuCall LLC
824 U.S Highway 1, Suite 335 North Palm Beach FL 33408
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/21/2023       15.8       11.1       11.3       0.00%  
Kids in Motion of Springfield LLC
dba The Little Gym of Springfield IL 3039-3043 Hedley Springfield IL 62704
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/18/2023       45.0       32.8       33.4       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

176


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Yousef Khatib dba Y&M Enterprises 671 E. Cooley Drive, Unit 114 Colton CA 92324     Wholesale Electronic Markets and Agents and Brokers       Term Loan       Prime plus 2.75%       11/15/2023     $ 75.0     $ 53.6     $ 54.7       0.02%  
Howell Gun Works LLC
2446 Route 9 Howell NJ 07731
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       11/14/2023       8.3       6.0       6.1       0.00%  
Polpo Realty, LLC
Polpo Restaurant, LLC
554 Old Post Road #3 Greenwich CT 06830
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/6/2038       62.5       58.2       63.4       0.03%  
Mid-Land Sheet Metal Inc
125 E Fesler Street Santa Maria CA 93454
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/31/2038       137.5       128.3       139.4       0.06%  
Master CNC Inc
& Master Properties LLC 11825 29 Mile Road Washington MI 48095
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2038       596.6       555.6       601.3       0.24%  
Janice B. McShan and The Metropolitan Day School, LLC
2817 Lomb Avenue Birmingham AL 35208
    Social Assistance       Term Loan       Prime plus 2.75%       10/31/2023       42.8       31.1       32.0       0.01%  
1 North Restaurant Corp
dba 1 North Steakhouse 322 W. Montauk Hwy Hampton Bays NY 11946
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       10/31/2038       212.5       197.9       215.2       0.09%  
Twinsburg Hospitality Group LLC
dba Comfort Suites 2716 Creekside Drive Twinsburg OH 44087
    Accommodation       Term Loan       Prime plus 2.75%       10/31/2038       945.0       883.7       958.5       0.38%  
New Image Building Services Inc.
dba New Image Repair Services; The Ma 1405 Combermer Dr. Troy MI 48083
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/29/2023       331.2       234.4       239.3       0.10%  
Greenbrier Technical Services, Inc
407 E. Edgar Avenue Ronceverte WV 24970
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/24/2023       240.1       154.8       159.4       0.06%  
Clairvoyant Realty Corp.
and Napoli Marble & Granite Design, Ltd 77 Mill Road Freeport NY 11520
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/24/2038       246.3       229.3       248.5       0.10%  
Kelly Auto Care LLC
dba Shoreline Quick Lube and Car Wash 2 Center Road Old Saybrook CT 06475
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/18/2023       87.5       61.9       63.2       0.03%  
Onofrios Enterprises LLC
Onofrios Fresh Cut, Inc
222 Forbes Avenue New Haven CT 06512
    Food Manufacturing       Term Loan       Prime plus 2.75%       9/30/2038       312.5       291.5       316.5       0.13%  
Discount Wheel and Tire
1202 S Park Drive Broken Bow OK 74728
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/30/2038       223.8       207.8       225.3       0.09%  
First Steps Real Estate Company, LLC
and First Steps Preschool – 104 McCoy Street
Milford DE 19963
    Social Assistance       Term Loan       Prime plus 2.75%       9/30/2038       97.6       90.7       98.1       0.04%  
Lenoir Business Partners LLC
LP Industries, Inc
dba Childforms 2040 Norwood Lenoir NC 28645
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       9/30/2038       322.7       277.4       301.4       0.12%  
Top Properties LLC
and LP Industries, Inc
dba Childforms 110 Charleston Drive, Suite 105-107 Morresville NC 28117
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       9/30/2038       120.0       112.1       122.0       0.05%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

177


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Cencon Properties LLC
and Central Connecticut Warehousing Company, In 37 Commons Court Waterbury CT 06704
    Warehousing and Storage       Term Loan       Prime plus 2.75%       9/30/2038     $ 344.5     $ 320.5     $ 348.6       0.14%  
Gabrielle Realty, LLC
242 Sheep Davis Road Concord NH 03301
    Gasoline Stations       Term Loan       Prime plus 2.75%       9/27/2038       757.5       703.6       762.5       0.30%  
Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC 12150 Annapolis Road, Suite 301 Glenn Dale
MD 20769
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/27/2038       335.1       311.2       337.7       0.13%  
Eastside Soccer Dome, Inc.
11919 S Avenue O Chicago IL 60617
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2038       463.8       430.6       468.5       0.19%  
Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Ho 17 Pearl Street Mystic CT 06355     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/26/2038       100.0       92.9       101.0       0.04%  
Southeast Chicago Soccer, Inc.
10232 S Avenue N Chicago IL 60617
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2038       51.2       47.6       51.8       0.02%  
HJ & Edward Enterprises, LLC
dba Sky Zone 13 Francis J Clarke Circle Bethel CT 06801
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2023       262.5       189.7       194.6       0.08%  
Kiddie Steps 4 You Inc.
1700 West 63rd St. Chicago IL 60636
    Social Assistance       Term Loan       Prime plus 2.75%       9/25/2038       89.2       84.4       91.4       0.04%  
Diamond Memorials Incorporated 800 Broad Street Clifton
NJ 07013
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/25/2023       14.2       8.9       9.1       0.00%  
Faith Memorial Chapel LLC
600 9th Avenue North Bessemer AL 35020
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/20/2038       268.4       249.6       270.9       0.11%  
Serious-Fun in Alpharetta, LLC
dba The Little Gym of Alpharetta 11585 Jones Bridge Road, Suite 4G Johns Creek
GA 30022
    Educational Services       Term Loan       Prime plus 2.75%       9/20/2023       46.2       32.6       33.2       0.01%  
Westville Seafood LLC
1514 Whalley Avenue New Haven CT 06515
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/19/2038       112.3       104.3       113.1       0.05%  
Maynard Enterprises Inc
dba Fastsigns of Texarkana 3735 Mall Drive Texarkana
TX 75501
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/18/2023       16.0       11.4       11.6       0.00%  
Grafio Inc
dba Omega Learning Center-Acworth 5330 Brookstone Drive, Suite 320 Acworth GA 30101
    Educational Services       Term Loan       Prime plus 2.75%       9/13/2023       156.2       116.1       118.4       0.05%  
Sound Manufacturing Inc
51 Donnelley Road Old Saybrook CT 06475
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/12/2028       54.8       45.5       47.6       0.02%  
The Berlerro Group, LLC
dba Sky Zone 111 Rodeo Drive Edgewood NY 11717
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/12/2023       421.3       304.3       310.1       0.12%  
Prospect Kids Academy Inc
532 St Johns Place Brooklyn NY 11238
    Educational Services       Term Loan       Prime plus 2.75%       9/11/2038       124.3       115.4       125.3       0.05%  
Alma J. and William R. Walton and Almas Child Day Care Center, I 2909 W 63rd Street Chicago IL 60629     Social Assistance       Term Loan       Prime plus 2.75%       9/11/2038       39.5       36.7       39.9       0.02%  
B for Brunette dba Blo
50 Glen Cove Rd Greenvale
NY 11548
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/10/2023       53.4       37.9       38.5       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

178


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Schmaltz Holdings, LLC
and Schmaltz Operations, LLC
dba Companio 3408 Castle Rock Farm Road Pittsboro NC 27312
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/4/2038     $ 224.2     $ 206.9     $ 224.3       0.09%  
Excel RP Inc
6531 Park Avenue Allen Park MI 48101
    Machinery Manufacturing       Term Loan       Prime plus 2.75%       8/30/2023       130.2       90.2       92.8       0.04%  
IlOKA Inc
dba Microtech Tel and NewCloud Networks 160 Inverness Dr W Ste 100 Englewood CO 80112
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2023       687.5       476.1       486.2       0.19%  
ACI Northwest Inc.
6600 N Government Way Coeur D Alene ID 83815
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       8/30/2023       906.2       424.7       436.7       0.17%  
Gulfport Academy Child Care
and Learning Center, Inc.
and Jennifer Sis 15150 Evans Street Gulfport MS 39503
    Social Assistance       Term Loan       Prime plus 2.75%       8/30/2023       43.3       30.0       30.8       0.01%  
Ramard Inc
and Advanced Health Sciences Inc
929 Grays Lane New Richmond OH 45157
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       8/28/2023       187.5       129.9       131.9       0.05%  
RM Hawkins LLC
dba Pure Water Tech West and Robert M Hawkins 1815 De Paul Street Colorado Springs
CO 80909
    Nonstore Retailers       Term Loan       Prime plus 2.75%       8/26/2023       85.8       56.2       57.8       0.02%  
JSIL LLC
dba Blackstones Hairdressing 19 East 7th Street New York NY 10003
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       8/16/2023       19.5       13.3       13.6       0.01%  
Island Nautical Enterprises, Inc.
and Ingwall Holdings, LLC
2233 3rd Ave South St Petersburg FL 33712
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       8/14/2038       445.0       322.0       348.6       0.14%  
Caribbean Concepts, Inc.
dba Quick Bleach
127 East 56th Street
New York NY 10022
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       8/12/2023       22.5       15.6       15.9       0.01%  
Majestic Contracting Services, Inc.
dba Majestic Electric and Majestic 1634 Atlanta Road SE Marietta GA 30060
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/26/2038       190.0       175.8       190.4       0.08%  
Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC
38 Carmen Lane Monroe CT 06468
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       7/24/2023       11.2       7.8       8.0       0.00%  
Angkor Restaurant Inc
10 Traverse Street Providence RI 02903
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/19/2038       93.0       86.0       93.5       0.04%  
Harbor Ventilation Inc
and Estes Investment, LLC
509 East Park St. Livingston MT 59047
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2038       92.1       20.3       22.1       0.01%  
Tri County Heating and Cooling Inc.
509 East Park St. Livingston MT 59047
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2023       87.8       60.1       61.8       0.02%  
Morning Star Trucking LLC
and Morning Star Equipment and Leasing LLC
1 Poppy Avenue Neptune NJ 07753
    Truck Transportation       Term Loan       Prime plus 2.75%       7/17/2023       53.7       36.8       37.4       0.01%  
Maxiflex LLC
512 Verret Street New Orleans LA 70114
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/28/2023       153.5       103.5       106.4       0.04%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

179


 
 

TABLE OF CONTENTS

               
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 411 Sharp Street Millville NJ 08332
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/28/2038     $ 97.5     $ 90.0     $ 97.9       0.04%  
JRA Holdings LLC
Jasper County Cleaners Inc
dba Superior Cleaner 22259 Whyte Hardee Boulevard Hardeeville SC 29927
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/28/2038       121.0       110.2       119.8       0.05%  
2161 Highway 6 Trail, LLC,
R. H. Hummer JR., Inc.
(Co-Borrower) 2141 P Avenue Williamsburg IA 52361
    Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2026       1,250.0       748.2       778.9       0.31%  
Blakeslee Arpaia Chapman, Inc.
dba Blakeslee Industrial Services 200 North Branford Road Branford CT 06405
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/18/2028       875.0       715.9       751.4       0.30%  
KDP LLC
and KDP Investment Advisors, Inc
and KDP Asset Management, Inc
24 Elm Street Montpelier VT 05602
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       6/14/2023       343.8       232.8       236.5       0.09%  
Elite Structures Inc
401 Old Quitman Road Adel GA 31620
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       6/12/2038       932.8       839.9       913.1       0.36%  
Willowbrook Properties LLC
Grove Gardens Landscaping Inc.
341 East Main Street, Unit 2 Clinton CT 06413
    Administrative and Support Services       Term Loan       Prime plus 2.75%       6/5/2038       186.3       172.0       186.6       0.07%  
Absolute Desire LLC
and Mark H. Szierer Sophisticated Smile 85 Reaville Avenue Flemington NJ 08822
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/5/2038       188.2       174.0       188.1       0.08%  
RXSB, Inc
dba Medicine Shoppe 3605 State Street Santa Barbara CA 93105
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       5/30/2023       186.2       124.8       126.6       0.05%  
Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD and 4640 Monticello Avenue, Suite 8A Williamsburg VA 23188     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/28/2023       63.5       43.2       44.1       0.02%  
Ryan D. Thornton and Thornton & Associates LLC
800 Bethel Street, Suite 200 Honolulu HI 96813
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       5/24/2023       68.7       34.1       34.6       0.01%  
PowerWash Plus, Inc.
and CJR, LLC
59 South US Highway Route 45 Grayslake IL 60030
    Repair and Maintenance       Term Loan       Prime plus 2.75%       4/30/2038       550.0       506.6       548.6       0.22%  
Peanut Butter & Co., Inc.
250 West 54th Street New York NY 10019
    Food Manufacturing       Term Loan       Prime plus 2.75%       4/30/2023       100.0       65.8       66.8       0.03%  
Brothers International Desserts 1682 Kettering Street Irvine
CA 92614
    Food Manufacturing       Term Loan       Prime plus 2.75%       4/26/2023       230.0       152.2       155.7       0.06%  
Kidrose, LLC
dba Kidville Riverdale 551 West 235th Street Bronx NY 10463
    Educational Services       Term Loan       Prime plus 2.75%       4/22/2023       78.7       52.7       53.8       0.02%  
1258 Hartford TPKE, LLC
and Phelps and Sons, Inc
1258 Hartford Turnpike Vernon CT 06066
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/29/2038       124.6       114.4       123.6       0.05%  
Capital Scrap Metal, LLC
and Powerline Investment, LLC
1610 N. Powerline Road Pompano Beach FL 33069
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/29/2038       500.0       436.8       474.5       0.19%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

180


 
 

TABLE OF CONTENTS

               
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; 2660 Brenner Drive Dallas TX 75220
    Food Manufacturing       Term Loan       Prime plus 2.75%       3/29/2038     $ 336.0     $ 309.0     $ 333.5       0.13%  
Neyra Industries, Inc.
and Edward Neyra 10700 Evendale Drive Cincinnati OH 45241
    Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       3/27/2023       217.5       142.2       146.0       0.06%  
Xela Pack, Inc.
and Aliseo and Catherine Gentile 8300 Boettner Road Saline MI 48176
    Paper Manufacturing       Term Loan       Prime plus 2.75%       3/27/2028       271.8       218.9       229.5       0.09%  
A & M Commerce, Inc.
dba Cranberry Sunoco 398 Baltimore Blvd Westminster MD 21157
    Gasoline Stations       Term Loan       Prime plus 2.75%       3/27/2038       330.3       303.0       328.6       0.13%  
American Diagnostic Imaging, Inc.
dba St. Joseph Imaging Center 3937 Sherman Avenue Saint Joseph MO 64506
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/25/2038       537.5       493.4       533.8       0.21%  
Michael A. and HeatherR. Welsch dba Art & FrameEtc. 2819 West T C Jester Blvd. Houston TX 77018     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/22/2038       67.5       61.9       67.2       0.03%  
M & H Pine Straw Inc
and Harris L. Maloy 526 Perry House Rd Fitzgerald GA 31750
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/21/2023       288.7       198.8       203.6       0.08%  
Truth Technologies Inc
dba Truth Technologies Inc.
2341 Cheshire Lane Naples FL 34109
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/21/2023       79.5       52.0       52.8       0.02%  
J. Kinderman & Sons Inc., dba BriteStar Inc.
2900 South 20th Street Philadelphia PA 19145
    Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       3/20/2023       181.2       119.2       122.4       0.05%  
Stellar Environmental LLC
11581 Edmonston Road Beltsville MD 20705
    Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       3/18/2023       56.3       36.8       37.8       0.02%  
Sound Manufacturing, Inc.
and Monster Power Equipment Inc.
51 Donnelley Road Old Saybrook CT 06475
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       3/15/2023       523.0       340.7       348.2       0.14%  
Golden Gate Lodging LLC
432 Margaret Street Plattsburgh NY 12901
    Accommodation       Term Loan       Prime plus 2.75%       3/12/2038       115.0       105.6       114.4       0.05%  
River Club Golf Course Inc
dba The River Club 6600 River Club Blvd Bradenton FL 34202
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2038       475.2       435.2       471.5       0.19%  
Bakhtar Group LLC
dba Malmaison 3401 K Street NW Washington DC 20007
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2023       103.8       67.6       68.5       0.03%  
Osceola River Mill, LLC
Ironman Machine, Inc.
27 Hungerford Street Pittsfield MA 01201
    Machinery Manufacturing       Term Loan       Prime plus 2.75%       2/20/2038       86.3       79.0       85.6       0.03%  
Java Warung, LLC
1915 N Richmond Street Appleton WI 54911
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/19/2038       51.0       46.8       50.7       0.02%  
Nancy & Karl Schmidt Moments to Remember USA, LLC
1250 Sanders Avenue SW Massillon OH 44647
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       2/15/2038       106.2       97.4       105.5       0.04%  
Outcome Driven Innovation, Inc.
dba ODI 2672 Bayshore Parkway, Bldg. 900 Mountain View CA 94043
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       2/12/2023       84.9       54.2       54.9       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

181


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Knits R Us, Inc.
dba NYC Sports/Mingle 2045 85th Street North Bergen
NJ 07047
    Textile Mills       Term Loan       Prime plus 2.75%       2/11/2038     $ 125.0     $ 114.7     $ 124.6       0.05%  
North Country Transport, LLC
10 LaCrosse Street, Suite 14 Hudson Falls NY 12839
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       2/6/2023       15.0       9.7       9.9       0.00%  
MJD Investments, LLC
dba The Community Day School 115 Centre Street Pleasant View TN 37146
    Social Assistance       Term Loan       Prime plus 2.75%       1/31/2038       258.3       236.1       255.6       0.10%  
Sherill Universal City dba Golden Corral 2301 Pat Booker Rd Universal City TX 78148     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/28/2038       440.5       404.3       437.7       0.17%  
Macho LLC
Madelaine Chocolate Novelties Inc
dba The Madelai 96-03 Beach Channel Drive Rockaway Beach NY 11693
    Food Manufacturing       Term Loan       Prime plus 2.75%       12/31/2037       500.0       458.6       500.3       0.20%  
WI130, LLC
& Lakeland Group, Inc
dba Lakeland Electrical 4820 W 130th Street Cleveland
OH 44135
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/31/2028       271.4       220.4       231.7       0.09%  
Elegant Fireplace Mantels, Inc.
dba Elegant Fireplace Mantels 11949 Borden Avenue San Fernando CA 91340
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2022       97.5       61.5       62.9       0.03%  
Babie Bunnie Enterprises Inc
dba Triangle Mothercare 8516 Swarthmore Drive Raleigh NC 27615
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/28/2027       46.2       33.3       34.8       0.01%  
John Duffy Fuel Co., Inc.
465 Mulberry Street Newark NJ 07114
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/28/2022       513.8       324.2       333.1       0.13%  
Polpo Realty LLC
& Polpo Restaurant LLC
dba Polpo Restauran 554 Old Post Road #3 Greenwich CT 06830
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/27/2037       517.5       473.3       516.4       0.21%  
Martin L Hopp, MD PHD A Medical Corp dba Tower ENT
8631 West Third St,
440 E & Los Angeles
CA 90048
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/21/2022       66.3       41.6       42.6       0.02%  
United Woodworking, Inc
28 New York Avenue Westbury NY 11590
    Wood Product Manufacturing       Term Loan       6%       12/20/2022       17.2       11.3       11.6       0.00%  
Pioneer Window Holdings, Inc
and Subsidiaries dba Pioneer Windows 15 Frederick Place Hicksville NY 11801
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/20/2022       225.0       141.5       145.1       0.06%  
Ezzo Properties, LLC
and Great Lakes Cleaning, Inc.
1405 Combermere Dr. Troy MI 48083
    Administrative and Support Services       Term Loan       Prime plus 2.75%       12/20/2027       389.6       308.7       323.1       0.13%  
The Amendments Group LLC
dba Brightstar 1480 Boiling Springs Rd Spartanburg SC 29303
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/17/2022       22.5       14.2       14.6       0.01%  
Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
4839 Wisconsin Ave., NW Suite 2 Washington DC 20016
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/30/2037       286.5       262.0       285.6       0.11%  
Aegis Creative Communications, Inc.
44 Union Blvd Suite 250 Lakewood CO 80228
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/30/2022       387.5       246.5       251.8       0.10%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

182


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
38 Carmen Lane Monroe CT 06468
    Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       11/28/2037     $ 223.8     $ 204.2     $ 222.7       0.09%  
D&L Rescources, Inc.
dba The UPS Store 8930 State Road # 84 Davie FL 33324
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/27/2022       9.8       6.1       6.2       0.00%  
Richmond Hill Mini Market, LLC
101 Richmond Hill Avenue Stamford CT 06902
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/27/2037       185.2       168.8       183.9       0.07%  
DRV Enterprise, Inc.
dba Cici's Pizza # 339 5771 East Fowler Ave Temple Terrace FL 33617
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/26/2022       65.0       37.7       38.7       0.02%  
U & A Food and Fuel, Inc.
dba Express Gas & Food Mart 1345 Wampanoag Trail East Providence RI 02915
    Gasoline Stations       Term Loan       Prime plus 2.75%       11/21/2037       96.2       87.6       95.6       0.04%  
Pioneer Windows Manufacturing Corp, Pioneer Windows 15 Frederick Place Hicksville NY 11801     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       11/21/2022       275.0       170.8       175.1       0.07%  
R & J Petroleum LLC
Manar USA, Inc.
305 Quincy Shore Drive Quincy MA 02107
    Gasoline Stations       Term Loan       Prime plus 2.75%       11/20/2037       180.0       163.9       178.7       0.07%  
St Judes Physical Therapy P.C. 7712 Fourth Ave Brooklyn NY 11209     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/19/2022       21.0       13.1       13.4       0.01%  
Hi-Def Imaging, Inc.
dba SpeedPro Imaging 3580 Progress Drive, Unit Q Bensalem PA 19020
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       11/9/2022       22.2       13.8       14.1       0.01%  
Reidville Hydraulics Mfg Inc
dba Summit 175 Industrial Lane Torrington CT 06790
    Machinery Manufacturing       Term Loan       Prime plus 2.75%       11/2/2037       265.9       242.7       263.9       0.11%  
Big Apple Entertainment Partners, LLC
d/b/a Ripley's Believe It or Not 234 West 42nd Street New York NY 10036
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       10/26/2022       180.0       113.2       115.7       0.05%  
LA Diner Inc
dba Loukas L A Diner 3205 Route 22 East Branchburg NJ 08876
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/28/2037       677.5       619.2       675.0       0.27%  
University Park Retreat, LLC
dba Massage Heights 5275 University Parkway # 110 Bradenton FL 34201
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/27/2022       76.0       46.0       47.3       0.02%  
Forno Italiano Di Nonna Randazzo, LLC
dba Nonna Randazzo's Bakery 22022 Marshall Road Mandeville LA 70471
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/26/2037       183.7       167.9       182.7       0.07%  
LaSalle Market and Deli EOK Inc
and Rugen Realty LLC
dba LaSalle Mark 101-106 Main Street Collinsville CT 06022
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/21/2037       252.2       228.7       248.8       0.10%  
O'Rourkes Diner LLC
dba O'Rourke's Diner 728 Main Street Middletown CT 06457
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/19/2037       65.5       59.4       64.6       0.03%  
AJK Enterprise LLC
dba AJK Enterprise LLC
1901 Naylor Road, SE Washington DC 20020
    Truck Transportation       Term Loan       Prime plus 2.75%       8/27/2022       16.5       9.8       10.1       0.00%  
New Image Building Services, Inc.
dba New Image Repair Services 1405 Combermere Dr. Troy MI 48083
    Repair and Maintenance       Term Loan       Prime plus 2.75%       8/23/2037       285.6       258.5       280.8       0.11%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

183


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Suncoast Aluminum Furniture, Inc
6291 Thomas Road
Fort Myers FL 33912
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       8/17/2037     $ 360.0     $ 325.8     $ 355.2       0.14%  
Hofgard & Co., Inc.
dba HofgardBenefits 400 S McCaslin Blvd Suite 201 Louisville CO 80027
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       7/27/2022       107.3       63.2       64.8       0.03%  
Georgia Safe Sidewalks LLC
1740 Wheatstone Drive Grayson GA 30017
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/27/2022       15.0       8.7       8.9       0.00%  
Scoville Plumbing & Heating Inc
and Thomas P. Scoville
311 South Main Street
Torrington CT 06790
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/25/2022       50.0       32.1       32.9       0.01%  
Central Tire, Inc.
dba Cooper Tire & Auto Services 1111 S Tillotson Avenue Muncie IN 47304
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/29/2037       288.5       259.6       282.3       0.11%  
WPI, LLC
16685 150th Street Spring Lake MI 49456
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       6/29/2024       129.5       87.2       90.0       0.04%  
Havana Central (NY) 5, LLC
630 Old Country Road, Room 1161 C Garden City NY 11530
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/29/2022       1,166.8       736.2       754.3       0.30%  
Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change 4300 Monticello Blvd South Euclid OH 44121     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/27/2037       69.7       62.8       68.3       0.03%  
KIND-ER-ZZ Inc
dba Kidville 30 Maple Street Summit NJ 07901
    Educational Services       Term Loan       Prime plus 2.75%       6/15/2022       50.0       28.8       29.4       0.01%  
Graphish Studio, Inc.
and Scott Fishoff 231 Main Street Stanford CT 06901
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/14/2022       20.2       11.8       12.0       0.00%  
ALF, LLC
Mulit-Service Eagle Tires 1985
B Street Colorado Springs CO 80906
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       5/31/2037       62.9       56.5       61.5       0.02%  
Craig R Freehauf d/b/a Lincoln Theatre 120 College Street, East Fayetteville TN 37334     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       5/31/2022       47.9       20.3       20.8       0.01%  
Lefont Theaters, Inc.
5920 Roswell Road Atlanta GA 30328
    Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       5/30/2022       137.0       78.6       80.4       0.03%  
Christou Real Estate Holdings LLC
dba Tops American Grill 351 Duanesburg Road Schenectady NY 123062035
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/17/2037       284.0       254.7       277.4       0.11%  
Tracey Vita-Morris dba Tracey Vita's School of Dance 4181 9th Avenue West Bradenton FL 34025     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       5/10/2022       22.5       12.9       13.2       0.01%  
Bisson Transportation, Inc.
85 Eisenhower Drive Westbrook ME 04011
    Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2037       588.1       550.0       597.5       0.24%  
Bisson Moving & Storage Company Bisson Transportation Inc
and BTG Real 85 Eisenhower Drive Westbrook ME 04011
    Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2022       528.8       342.1       350.3       0.14%  
Fair Deal Food Mart Inc
dba Neighbors Market 775 Beaver Ruin Road Lilburn GA 30047
    Gasoline Stations       Term Loan       Prime plus 2.75%       5/3/2037       381.2       342.3       372.9       0.15%  
Tanner Optical, Inc.
dba Murphy Eye Care 305 Shirley Avenue Douglas GA 31533
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/27/2022       8.2       4.6       4.7       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

184


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Zane Filippone Co Inc
dba Culligan Water Conditioning 18 North Field Avenue West Orange NJ 07052
    Nonstore Retailers       Term Loan       Prime plus 2.75%       4/12/2022     $ 558.2     $ 316.4     $ 324.0       0.13%  
Indoor Playgrounds Limited Liability Company dba Kidville 20 Grand Avenue Englewood NJ 07631     Educational Services       Term Loan       Prime plus 2.75%       4/5/2022       19.5       6.2       6.3       0.00%  
Brandywine Picnic Park, Inc.
and B.Ross Capps & Linda Capps 690 South Creek Road West Chester PA 19382
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/30/2031       231.4       191.7       204.1       0.08%  
Access Staffing, LLC
360 Lexington Avenue, 8th Floor New York NY 10017
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/30/2022       187.5       104.5       106.4       0.04%  
Willow Springs Golf Course, Inc.
& JC Lindsey Family Limited Partners 1714 Avondale Haslet Road Haslet TX 76052
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/29/2037       755.4       675.3       734.9       0.29%  
DC Realty, LLC
dba FOGO Data Centers
340 Tom Reeve Drive
Carrolton GA 30117
    Professional, Scientific, and Technical Services       Term Loan       6%       3/23/2037       3,133.8       2,623.4       2,855.0       1.14%  
DC Realty, LLC
dba FOGO Data Centers
340 Tom Reeve Drive
Carrolton GA 30117
    Professional, Scientific, and Technical Services       Term Loan       6.25%       3/23/2022       1,540.0       808.9       828.2       0.33%  
Manuel P. Barrera and Accura Electrical Contractor, Inc.
6187 NW 167th Street Unit H3 Miami FL 33015
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/23/2028       103.7       80.0       83.9       0.03%  
Shweiki Media, Inc.
dba Study Breaks Magazine 4954 Space Center Drive San Antonio TX 78218
    Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       3/22/2027       1,178.8       883.7       923.5       0.37%  
ATI Jet, Inc.
7007 Boeing Drive El Paso TX 79925
    Air Transportation       Term Loan       Prime plus 2.75%       12/28/2026       852.8       615.9       644.7       0.26%  
J. Kinderman & Sons, Inc.
dba Brite Star Manufacturing Company 2900 South 20th Street Philadelphia PA 19145
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       12/22/2036       495.0       446.4       486.3       0.19%  
K's Salon, LLC
d/b/a K's Salon 162 West 84th Street New York
NY 10024
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/20/2021       73.6       39.2       40.0       0.02%  
15 Frederick Place LLC
& Pioneer Windows Holdings Inc
& Subs dba Pion 15 Frederick Place Hicksville NY 11801
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/16/2021       250.0       131.4       134.4       0.05%  
M & H Pinestraw, Inc.
and Harris L. Maloy 526 Perry House Rd Fitzgerald GA 31750
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/15/2021       238.2       135.5       138.5       0.06%  
Taylor Transport, Inc
1708 HWY 113 SW CARTERSVILLE GA 30120
    Truck Transportation       Term Loan       Prime plus 2.75%       12/8/2021       515.5       179.0       183.2       0.07%  
Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
311 South Main Street Torrington CT 16790
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/16/2021       62.5       34.3       35.1       0.01%  
MRM Supermarkets, Inc.
dba Constantin's Breads 2660 Brenner Drive DALLAS TX 75220
    Food Manufacturing       Term Loan       Prime plus 2.75%       11/10/2021       137.5       72.1       73.7       0.03%  
K9 Bytes, Inc
& Epazz, Inc
dba K9 Bytes, Inc
325 N. Milwaukee Ave, Suite G1 Wheeling IL 60090
    Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       10/26/2021       58.7       31.3       31.9       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

185


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
28 Cornelia Street Properties, LLC
and Zouk, Ltd. dba Palma 28-28 1/2 Cornelia Street New York NY 10014
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       10/25/2021     $ 22.5     $ 11.5     $ 11.8       0.00%  
39581 Garfield, LLC
and Tri County Neurological Associates, P.C. 39581 Garfield Road Clinton Township
MI 48038
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/30/2036       83.3       73.3       79.8       0.03%  
Robert E. Caves, Sr. and American Plank dba Caves Enterprises 40515 Pumpkin Center Road Hammond LA 70403     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/30/2021       302.5       150.3       153.6       0.06%  
39581 Garfield, LLC
and Tricounty Neurological Associates, P.C. 39581 Garfield Road Clinton Township
MI 48038
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/30/2036       28.4       24.9       27.1       0.01%  
PTK, Incorporated dba Night N Day 24 HR Convenience Store 5026 Benning Rd SE Washington DC 20019     Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/30/2036       137.5       121.3       132.0       0.05%  
Big Apple Entertainment Partners, LLC
dba Ripley's Believe it or Not 234 West 42nd Street New York NY 10036
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/28/2021       1,070.0       535.1       545.1       0.22%  
Equity National Capital LLC
& Chadbourne Road Capital, LLC
331 Newman Springs Road, Suite 310 Red Bank NJ 07701
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       9/26/2021       62.5       31.7       32.3       0.01%  
Bryan Bantry Inc.
119 West 57th street, Suite 400 New York NY 10019
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       9/8/2021       400.0       42.4       43.2       0.02%  
Michael S. Decker & Janet Decker dba The Hen House Cafe 401 Caribou Street Simla CO 80835     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/30/2036       16.4       14.4       15.6       0.01%  
Qycell Corporation 600 South Etiwanda Avenue Ontario CA 91761     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/19/2021       187.5       88.2       90.0       0.04%  
Trademark Equipment Company Inc
and David A. Daniel 5690 Pine Lane Circle Bessemer AL 35022
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       8/19/2036       133.6       117.5       127.8       0.05%  
Valiev Ballet Academy, Inc
635 – 637 Londonderry Lane Denton TX 76205
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       8/12/2036       91.5       37.3       40.6       0.02%  
A & A Auto Care, LLC
d/b/a A & A Auto Care, LLC
11 Old York Road BridgeWater NJ 18807
    Repair and Maintenance       Term Loan       Prime plus 2.75%       8/12/2036       101.0       89.0       96.8       0.04%  
LaHoBa, LLC
d/b/a Papa John's 3001 Pontchartrain Drive Slidell LA 70458
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/3/2036       77.5       67.7       73.7       0.03%  
Kelly Chon LLC
dba Shi-Golf 1646 25th Ave NE Issaquah WA 98029
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       7/29/2021       17.5       6.2       6.3       0.00%  
MTV Bowl, Inc.
dba Legend Lanes 4190 State Road Cuyahoga Falls
OH 44223
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/30/2036       248.5       218.4       237.2       0.09%  
Lavertue Properties LLP dba Lavertue Properties 24 Wakefield Street Rochester NH 13867     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       6/29/2036       44.7       39.3       42.8       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

186


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Lisle Lincoln II Limited Partnership dba Lisle Lanes LP 4920 Lincoln Avenue Route
53 Lisle IL 60532
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/29/2036     $ 338.1     $ 307.9     $ 334.6       0.13%  
Pierce Developments, Inc.
dba Southside Granite 301-307 Chalker Street
Dothan AL 36301
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/13/2036       256.1       224.1       243.3       0.10%  
Major Queens Body & Fender Corp 10 Erasmus Street Brooklyn NY 11226     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/10/2021       28.6       13.7       14.0       0.01%  
J&K Fitness, LLC
dba Physiques Womens Fitness Center 2505 Verot School Road Lafayette LA 70508
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/8/2036       449.2       403.6       438.7       0.18%  
Peanut Butter & Co., Inc.
d/b/a Peanut Butter & Co. 1790 Broadway Suite 716 New York NY 10019
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/3/2021       65.5       30.2       30.7       0.01%  
Demand Printing Solutions, Inc.
and MLM Enterprises, LLC
d/b/a Demand 3900 Rutledge Road NE Albuquerque NM 87109
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/27/2021       16.5       7.7       7.9       0.00%  
Modern on the Mile, LLC
dba Ligne Roset 162 N. 3rd Street Philadelphia PA 19106
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       5/25/2021       212.5       99.1       100.9       0.04%  
Music Mountain Water Company, LLC
301 East Herndon Shreveport LA 71101
    Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       4/25/2036       138.1       119.8       130.2       0.05%  
Profile Performance, Inc.
and Eidak Real Estate, L.L.C. 44600 Michigan Avenue Canton MI 48188
    Repair and Maintenance       Term Loan       Prime plus 2.75%       4/20/2036       127.5       111.1       120.8       0.05%  
Northwind Outdoor Recreation, Inc.
dba Red Rock Wilderness Store 2267 Fernberg Trail Ely MN 55731
    Nonstore Retailers       Term Loan       Prime plus 2.75%       4/18/2036       129.5       115.3       125.4       0.05%  
Michael S. Korfe dba North Valley Auto Repair 7516 B 2nd Street, NW Albuquerque NM 87107     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/24/2036       15.5       13.5       14.6       0.01%  
Actknowledge, Inc
dba Actknowledge 365 Fifth Avenue New York NY 10016
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/21/2021       57.3       26.0       26.5       0.01%  
Key Products I&II, Inc.
dba Dunkin' Donuts/Baskin-Robbins 440-A Forest Avenue Paramus
NJ 07652
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/10/2021       153.0       69.6       70.8       0.03%  
Stephen Frank, Patricia Frank and Suds Express LLC
dba Frank Chiropra 520 E. 8th Street Anderson IN 46012
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/25/2023       63.0       33.8       34.8       0.01%  
SuzyQue’s LLC
dba Suzy Que’s 34 South Valley Road West Orange NJ 07052
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/11/2036       61.0       53.1       57.7       0.02%  
Little People’s Village, LLC
dba Little People’s Village 904 North 66th Street Philadelphia PA 19151
    Social Assistance       Term Loan       Prime plus 2.75%       1/31/2036       31.1       26.9       29.2       0.01%  
Seagate Group Holdings, Inc.
dba Seagate Logistics, Inc.
64-68 North Central Avenue Valley Stream NY 11580
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       1/28/2036       113.4       98.0       106.5       0.04%  
Patrageous Enterprises, LLC
dba Incredibly Edible Delites of Laurel 604 Main Street Laurel MD 20707
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/29/2020       7.6       3.1       3.2       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

187


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Dixie Transport, Inc.
& Johnny D. Brown & Jimmy Brown & Maudain Brown 2685 US Hwy 41 Calhoun GA 30701
    Support Activities for Transportation       Term Loan       5.25%       12/28/2035     $ 145.9     $ 133.2     $ 144.8       0.06%  
Groundworks Unlimited LLC
50 Telfair Place Garden City GA 31415
    Specialty Trade Contractors       Term Loan       6%       12/17/2023       120.0       76.0       78.7       0.03%  
Shree OM Lodging, LLC
dba Royal Inn 2030 W. Northwest Highway Dallas TX 75220
    Accommodation       Term Loan       Prime plus 2.75%       12/17/2035       27.7       23.9       26.0       0.01%  
Lodin Medical Imaging, LLC
dba Watson Imaging Center 3915 Watson Road St. Louis
MO 63109
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/1/2020       66.4       27.3       27.8       0.01%  
Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center 2879 Limekiln Pike Glenside PA 19038     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/30/2035       34.0       29.3       31.8       0.01%  
West Cobb Enterprises, Inc
and Advanced Eye Associates, L.L.C. 2645 Dallas Hwy, Suite 100 Marietta GA 30064
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/12/2035       148.7       128.1       139.2       0.06%  
Lincoln Park Physical Therapy 212 Main Street Lincoln Park NJ 07405     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/20/2020       43.5       16.2       16.5       0.01%  
K9 Bytes, Inc
& Epazz, Inc
325 N. Milwaukee Ave, Suite G1 Wheeling IL 60090
    Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       9/30/2020       18.5       7.7       7.8       0.00%  
Elan Realty, LLC
and Albert Basse Asociates, Inc.
175 Campanelli Park Way Stroughton MA 02072
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       9/30/2035       228.2       195.3       212.1       0.08%  
Success Express, Inc.
dba Success Express 550 Eighth Avenue New York NY 10018
    Couriers and Messengers       Term Loan       Prime plus 2.75%       9/29/2020       91.8       36.1       36.7       0.01%  
Modern Manhattan, LLC
162 N 3rd Street Philadelphia PA 19106
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       9/20/2020       204.0       81.7       83.2       0.03%  
Dirk's Trucking, L.L.C. dba Dirk's Trucking 1041 John D Hebert Rd Breaux Bridge LA 70517     Truck Transportation       Term Loan       Prime plus 2.75%       9/17/2020       17.7       6.9       7.0       0.00%  
Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery 2320 2nd Street Albuquerque NM 87107     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/2/2035       50.1       42.8       46.5       0.02%  
Newsome Trucking Inc
and Kevin Newsome 2262 HWY 53W Jasper GA 30143
    Truck Transportation       Term Loan       Prime plus 2.75%       9/2/2035       423.1       206.1       223.8       0.09%  
California College of Communications, Inc.
1265 El Camino Real Santa Clara CA 95050
    Educational Services       Term Loan       Prime plus 2.75%       11/2/2020       172.5       70.6       71.9       0.03%  
DDLK Investments LLC
d/b/a Smoothie King 251 Rock Road Glen Rock NJ 07542
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/30/2020       7.5       2.1       2.2       0.00%  
Members Only Software 1806 T Street Washington DC 20009     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2020       40.3       15.4       15.7       0.01%  
ActKnowledge, Inc
dba ActKnowledge 365 Fifth Avenue New York NY 10016
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/30/2020       50.0       18.7       19.0       0.01%  
I-90 RV & Auto Supercenter 4505 South I-90 Service Road Rapid City SD 57703     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       6/29/2035       74.9       63.6       69.0       0.03%  
Zouk, Ltd. dba Palma 28 Cornelia Street New York NY 10014     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/25/2020       27.5       10.7       10.9       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

188


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
CJ Park Inc.
dba Kidville Midtown West 515 West 51st Street New York NY 10019
    Educational Services       Term Loan       Prime plus 2.75%       6/25/2020     $ 26.4     $ 7.8     $ 7.9       0.00%  
Tanner Optical Inc.
dba Murphy Eye Care 305 Shirley Avenue Douglas GA 31533
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/22/2035       94.6       80.2       87.0       0.03%  
M & H Pine Straw, Inc. and Harris Maloy 526 Perry House Rd Fitzgerald GA 31750     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 6531 Park Avenue Allen Park MI 48101     Machinery Manufacturing       Term Loan       Prime plus 2.75%       7/8/2028       50.0       36.8       38.9       0.02%  
ValleyStar, Inc.
dba BrightStar HealthCare 5900 Sepulveda Blvd Van Nuys CA 91411
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       6.1       2.2       2.3       0.00%  
ValleyStar, Inc.
dba BrightStar Healthcare 5900 Sepulveda Blvd Van Nuys CA 91411
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       7.5       2.8       2.8       0.00%  
Diag, LLC
dba Kidville 4825 Bethesda Avenue Bethesda MD 20814
    Educational Services       Term Loan       Prime plus 2.75%       6/21/2020       37.5       13.5       13.8       0.01%  
M & H Pine Straw, Inc
and Harris L. Maloy 526 Perry House Rd Fitzgerald GA 31750
    Support Activities for Agriculture and Forestry       Term Loan       6%       4/30/2020       183.3       57.0       58.0       0.02%  
New Economic Methods LLC
dba Rita's 1014 H Street NE Washington DC 20002
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/15/2020       24.8       0.6       0.7       0.00%  
Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail 206 McDonald Avenue South Daytona FL 32119     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/26/2020       6.3       2.2       2.2       0.00%  
Vortex Automotive LLC
404 Lavaine Lane Lewisville TX 75056
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/5/2035       76.6       64.7       70.1       0.03%  
Lahoba, LLC
dba Papa John's Pizza 620 W. Judge Perez Drive Chalmette LA 70163
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/30/2034       42.5       35.7       38.7       0.02%  
Music Mountain Water Company, LLC
dba Music Mountain Water Co. 301 East Herndon Shreveport LA 71101
    Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       12/29/2019       185.3       58.8       59.6       0.02%  
Animal Intrusion Prevention Systems Holding Company, LLC
3330 North Beach Street Haltom City TX 76111
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/29/2024       126.5       27.4       28.4       0.01%  
David A. Nusblatt, D.M.D, P.C. 60 E. 9th Street New York NY 10003     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/11/2019       9.0       2.8       2.8       0.00%  
CMA Consulting dba Construction Management Associates 289 Rickenbacker Circle Livermore CA 94551     Construction of Buildings       Term Loan       Prime plus 2.75%       12/11/2019       58.5       16.5       16.7       0.01%  
KMC RE, LLC
& B&B Kennels 6004 City Park Road Austin TX 78730
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/19/2034       58.3       48.8       52.8       0.02%  
Demand Printing Solutions, Inc.
3900 Rutledge Road NE Albuquerque NM 87109
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/12/2019       10.0       3.1       3.1       0.00%  
Demand Printing Solutions, Inc
3900 Rutledge Road NE Albuquerque NM 87109
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/29/2034       147.5       123.0       133.2       0.05%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

189


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ROVER REPAIRS 301 MACDADE BLVD
COLLINGDALE PA 19023
    Repair and Maintenance       Term Loan       Prime plus 2.5%       11/28/2029     $ 72.5     $ 52.8     $ 39.3       0.02%  
Supreme Screw Products
10 Skyline Drive Plainview NY 11803
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/17/2019       308.2       69.8       70.6       0.03%  
Gray Tree Service, Inc.
302 W. Kenneth Mount Prospect IL 60056
    Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2018       50.0       9.5       9.5       0.00%  
Gourmet to You, Inc.
129 NW 13th Street Boca Raton FL 33432
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2019       12.1       2.4       2.5       0.00%  
The Alba Financial Group, Inc.
1420 Spring Hill Road McLain VA 22102
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       6%       1/10/2019       22.5       10.9       11.0       0.00%  
Grapevine Professional Services, Inc.
9537 Majestic Way Boynton Beach FL 33437
    Administrative and Support Services       Term Loan       Prime plus 2.75%       1/22/2019       8.2       1.6       1.6       0.00%  
Inflate World Corporation 2552 Merchant Avenue Odessa FL 33556     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/30/2018       7.5       0.9       0.9       0.00%  
Peter Thomas Roth Labs LL 460 Park Avenue
New York NY 10022
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/26/2018       425.0       67.6       68.1       0.03%  
CBA D&A Pope, LLC
dba Christian Brothers Automotive 3790 West Eldorado Parkway McKinney TX 75070
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/14/2018       144.9       20.0       20.1       0.01%  
Gilbert Chiropractic Clinic, Inc.
5949 17th Avenue West Bradenton FL 34209
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/7/2018       22.5       2.7       2.7       0.00%  
D & D's Divine Beauty School of Esther, LLC
5524 Germantown Ave Philadelphia PA 19144
    Educational Services       Term Loan       6%       8/1/2031       57.7       50.1       53.7       0.02%  
Bwms Management, LLC
327 South Broadway Gloucester City NJ 08030
    Food Services and Drinking Places       Term Loan       0%       3/1/2018       5.1       2.2       2.1       0.00%  
Burks & Sons Development LLC
dba Tropical Smoothie Cafe 10011 Estero Town Commons Place Estero FL 33928
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/22/2018       49.7       4.8       4.9       0.00%  
Bliss Coffee and Wine Bar, LLC
1402-A Handlir Drive Bel Air MD 21015
    Food Services and Drinking Places       Term Loan       6%       3/19/2018       87.5       69.0       69.4       0.03%  
Zog Inc.
595 Bethlehem Pike, Suite 404 Montgomeryville PA 18936
    Other Information Services       Term Loan       6%       3/17/2018       97.5       55.7       56.0       0.02%  
Saan M.Saelee dba Saelee's Delivery Service 905 Balaye Ridge Circle, Apt. 204 Tampa FL 33619     Truck Transportation       Term Loan       Prime plus 2.75%       3/12/2018       9.8       1.0       1.0       0.00%  
Integrity Sports Group, LLC
441 Summit Avenue South Orange NJ 07079
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       6%       3/6/2018       75.0       31.0       31.2       0.01%  
Enewhere Custom Canvas, LLC
2730 Gerritsen Avenue Brooklyn NY 11229
    Textile Product Mills       Term Loan       Prime plus 2.75%       2/15/2018       12.0       1.1       1.1       0.00%  
A & A Acquisition, Inc.
dba A & A International 544 Central Drive, Ste. 110 Virginia Beach VA 23454
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       2/15/2018       100.0       8.6       8.6       0.00%  
All American Printing
3010 SW 14th Place Boynton FL 33426
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/26/2032       69.7       36.6       39.4       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

190


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Seo's Paradise Cleaners, Inc.
467 S. Broadway Salem NH 03079
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/19/2018     $ 9.8     $ 0.3     $ 0.3       0.00%  
Connect Litigation Technology, Inc.
1101 Ivy Hill Road, #4 Philadelphia PA 19150
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2%       10/18/2025       150.6       26.5       18.9       0.01%  
Margab, Inc.
dba Smoothie King 14200 SW 8 Street Unit 102 Miami
FL 33184
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/28/2017       44.0       2.9       2.9       0.00%  
RCB Enterprises, Inc.
1100 Grove Park Circle Boynton Beach FL 33436
    Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2017       21.2       1.7       1.7       0.00%  
Tammy's Bakery, Inc.
dba Tammy's Bakery 9443 SW 56th Street Miami FL 33165
    Food Manufacturing       Term Loan       Prime plus 2.75%       12/10/2017       71.8       5.4       5.4       0.00%  
Maria C. Sathre and David N. Sathre dba Black Forest Liquor Store 11450 Black Forest Drive Colorado Springs CO 80908     Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/28/2017       18.6       1.0       1.0       0.00%  
Kings Laundry, LLC
1520 N. Eastern Ave. Las Vegas NV 89101
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/30/2017       64.5       2.9       2.9       0.00%  
Quality Engraving Services Inc.
and Ian M. Schnaitman 148 W. Michigan Avenue Marshall MI 49068
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       10/17/2017       15.0       0.9       0.9       0.00%  
Louis B. Smith
dba LAQ Funeral Coach 8451 W. Chicago Detroit MI 48238
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/15/2017       12.6       0.4       0.4       0.00%  
1911 East Main Street Holdings, Corp 1911 East Main Street Endicott NY 13760     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/18/2032       15.8       12.1       13.0       0.01%  
Metano IBC Services, Inc.
and Stone Brook Leasing, LLC
2 Merkin Drive Perrinevile NJ 08535
    Rental and Leasing Services       Term Loan       Prime plus 2.75%       8/17/2017       315.0       8.5       8.6       0.00%  
Mala Iyer, MD dba Child and Family Wellness Center 710 Brewester Drive Port Jefferson NY 11777     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       8/11/2017       50.0       1.6       1.6       0.00%  
Water Works Laundromat, LLC
968-970 Bergen Street Newark NJ 07104
    Personal and Laundry Services       Term Loan       Prime plus 2.25%       9/7/2027       267.3       173.6       178.5       0.07%  
Dave Kris, and MDK Ram Corp. 15 Elm Park Groveland
MA 01930
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/5/2026       52.6       30.9       32.3       0.01%  
Gill Express Inc.
dba American Eagle Truck Wash 12200 N. Holland Oklahoma City OK 73131
    Repair and Maintenance       Term Loan       Prime plus 2.75%       1/5/2027       286.9       180.6       189.7       0.08%  
Smooth Grounds, Inc.
411 S. Belcher Rd., Unit #6 Clearwater FL 337653915
    Food Services and Drinking Places       Term Loan       7.75%       12/31/2018       64.5       29.3       29.6       0.01%  
Fran-Car Corporation
dba Horizon Landscape Management 18035 134th Way North Jupiter FL 33478
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/3/2028       244.7       155.6       164.2       0.07%  
Head To Toe Personalized Pampering, Inc.
2331 North State Road 7 Lauderhill FL 33313
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/27/2031       12.0       8.8       9.4       0.00%  
Christopher F. Bohon & Pamela D. Bohon 11600 County Road 71 Lexington AL 35648     Social Assistance       Term Loan       Prime plus 2.75%       10/28/2026       5.1       3.1       3.3       0.00%  
Mogas Limited
47 Chestnut Street Elmer NJ 08318
    Gasoline Stations       Term Loan       Prime plus 2.75%       5/31/2030       100.0       71.3       54.1       0.02%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

191


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Shree Om Lodging, LLC
dba Royal Inn 2030 W. Northwest Hwy Dallas TX 75220
    Accommodation       Term Loan       Prime plus 2.75%       5/2/2030     $ 76.9     $ 63.1     $ 67.2       0.03%  
Pedzik's Pets, LLC
762 River Road New Boston NH 03070
    Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       3/31/2030       12.3       8.8       9.3       0.00%  
Nancy Carapelluci & A & M Seasonal Corner Inc.
1503 Hicksville Road Massapequa NY 11758
    Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       3/1/2025       25.1       13.8       14.4       0.01%  
Patricia Hughes Jones, MD PC 5235 Walnut Street Philadelphia PA 19126     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       1/13/2020       18.0       4.6       3.2       0.00%  
Moonlight Multi Media Production, Inc.
2700 West Cypress Creek Road Fort Lauderdale FL 33309
    Other Information Services       Term Loan       5.3%       2/1/2025       7.0       3.0       3.2       0.00%  
David M. Goens dba Superior Auto Paint & Body, Inc.
1912 Manhattan Ave Harvey LA 70058
    Repair and Maintenance       Term Loan       6%       8/26/2024       32.2       16.9       17.6       0.01%  
McCallister Venture Group, LLC
and Maw's Vittles, Inc.
511 South Broad Street Brooksville FL 34601
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/30/2029       17.2       11.1       11.8       0.00%  
Computer Renaissance dba Dante IT Services, Inc.
12981 Ridgedale Drive (Old) Minnetonka MN 55305
    Electronics and Appliance Stores       Term Loan       Prime plus 3.75%       3/1/2018       13.5       1.0       1.0       0.00%  
Chong Hun Im dba Kim's Market 730 East 28th Street Ogden UT 84403     Food and Beverage Stores       Term Loan       Prime plus 2.5%       2/27/2024       18.3       8.8       9.1       0.00%  
Whirlwind Car Wash, Inc.
1370 Le Anne Marie Circle Columbus OH 43026
    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 59 West Mountain Road Queensbury NY 12804     Amusement, Gambling, and Recreation Industries       Term Loan       6%       6/5/2026       1,076.7       843.7       883.4       0.35%  
Center-Mark Car Wash, Ltd 5315 Center Rd Brunswick Hillls OH 44212     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/18/2024       52.3       26.3       27.3       0.01%  
Shuttle Car Wash, Inc.
dba Shuttle Car Wash 745 Cheney Highway Ttitusville FL 32780
    Repair and Maintenance       Term Loan       Prime plus 2.25%       11/10/2028       25.3       16.7       17.2       0.01%  
Min Hui Lin 1916 Broad Street Lanett AL 36863     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2028       28.8       16.9       17.8       0.01%  
Delta Partners, LLC
dba Delta Carwash 5640 Indian Crest Lane Olympia WA 98516
    Repair and Maintenance       Term Loan       Prime plus 2.5%       4/5/2029       61.1       41.3       43.3       0.02%  
Auto Sales, Inc.
1925 State Street Hamden CT 06417
    Motor Vehicle and Parts Dealers       Term Loan       6%       8/17/2023       17.2       7.3       7.5       0.00%  
B & J Manufacturing Corporation and Benson Realty Trust 55 Constitution Drive Taunton MA 02780     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2%       3/30/2021       57.2       17.6       17.7       0.01%  
RAB Services, Inc.
& Professional Floor Installations 110 Gainsboro Circle Chesapeake VA 23320
    Specialty Trade Contractors       Term Loan       Prime plus 2.5%       1/31/2023       14.3       6.5       6.7       0.00%  
Ralph Werner dba Werner Transmissions 259 East Central Avenue Bangor PA 18013     Gasoline Stations       Term Loan       Prime plus 2.75%       12/29/2021       6.0       2.1       2.2       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

192


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Taste of Inverness, Inc.
dba China Garden 1314 US Highway 41 North Inverness FL 34450
    Food Services and Drinking Places       Term Loan       Prime plus 2%       6/29/2025     $ 16.9     $ 8.4     $ 8.5       0.00%  
M. Krishna, Inc.
dba Super 8 Motel 140 Vulcan Road Birmingham AL 35209
    Accommodation       Term Loan       Prime plus 2%       3/20/2025       53.2       9.0       9.1       0.00%  
Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
3118 Bayshore Avenue Brigantine NJ 08203
    Amusement, Gambling, and Recreation Industries       Term Loan       6%       9/14/2023       39.8       30.6       31.6       0.01%  
OrthoQuest, P.C.
2336 Wisteria Drive, Suite 430 Snellville GA 30078
    Ambulatory Health Care Services       Term Loan       Prime plus 2%       3/12/2022       13.0       3.9       3.9       0.00%  
CPN Motel, L.L.C.
dba American Motor Lodge 2636 South Main Street Waterbury CT 06706
    Accommodation       Term Loan       Prime plus 2.25%       4/30/2024       68.1       29.1       29.7       0.01%  
Track Side Collision & Tire, Inc.
98-16 160 Avenue Ozone Park NY 11414
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/16/2025       10.2       4.7       4.9       0.00%  
Duttakrupa, LLC
dba Birmingham Motor Court 1625 3rd Avenue West Birmingham AL 35208
    Accommodation       Term Loan       Prime plus 2.25%       9/8/2023       22.6       11.4       11.7       0.00%  
Deesha Corporation, Inc.
dba Best Inn & Suites 9225 Parkway East Birmingham AL 35206
    Accommodation       Term Loan       Prime plus 2.25%       2/14/2025       53.2       26.1       26.7       0.01%  
Maruti, Inc
1506 280 By-Pass Phenix City AL 36867
    Accommodation       Term Loan       Prime plus 2.25%       11/25/2024       50.4       24.1       24.7       0.01%  
Willington Hills Equestrian Center LLC
34 Cemetery Road Willington CT 06279
    Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       10/19/2022       19.5       12.6       13.0       0.01%  
LABH, Inc.
t/a Ramada Ltd. 1550 Military Highway Norfolk VA 23502
    Accommodation       Term Loan       Prime plus 2.25%       9/27/2024       85.1       38.8       39.6       0.02%  
Randall D. & Patricia D. Casaburi dba Pat's Pizzazz 386 Winsted Road Torrington CT 06790     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       3/13/2023       15.7       6.6       6.8       0.00%  
Gain Laxmi, Inc.
dba Super 8 Motel 14341 U.S. Highway 431 South Gunterville AL 35976
    Accommodation       Term Loan       Prime plus 2.25%       5/31/2023       46.4       18.7       19.1       0.01%  
Naseeb Corporation
1696 North Broad Street Meriden
CT 6450
    Accommodation       Term Loan       Prime plus 2.25%       3/31/2024       62.9       28.2       28.7       0.01%  
Stillwell Ave Prep School
1990 Stillwell Avenue Brooklyn NY 11214
    Social Assistance       Term Loan       Prime plus 2.75%       1/14/2023       17.1       5.9       6.1       0.00%  
Karis, Inc.
205 W Madison and 716 Park Avenue Baltimore MD 21201
    Accommodation       Term Loan       Prime plus 2%       12/22/2023       34.1       12.6       12.7       0.01%  
Five Corners, Ltd. 310-312 Neighborhood Road Mastic Beach NY 11951     Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2019       19.5       4.0       4.1       0.00%  
Alyssa Corp
dba Knights Inn 1105 Columbus Parkway Opelika AL 36801
    Accommodation       Term Loan       Prime plus 2.25%       9/30/2023       65.7       40.4       41.1       0.02%  
Bhailal Patel dba New Falls Motel 201 Lincoln Highway Fairless Hills PA 190301102     Accommodation       Term Loan       Prime plus 2.75%       3/27/2023       22.9       3.3       3.4       0.00%  
Pegasus Automotive, Inc.
3981 Hylan Boulevard Staten Island NY 10308
    Gasoline Stations       Term Loan       Prime plus 2.75%       12/23/2022       25.8       10.2       10.5       0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

193


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Delyannis Iron Works
91 Summer Street Paterson NJ 7510
    Fabricated Metal Product Manufacturing       Term Loan       6%       12/8/2022     $ 68.4     $ 13.5     $ 13.9       0.01%  
P. Agrino, Inc.
dba Andover Diner 193 Main Street Andover NJ 07860
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/18/2021       32.6       8.0       8.2       0.00%  
RJS Service Corporation
361 Washington Street Newton MA 02158
    Gasoline Stations       Term Loan       Prime plus 2.75%       8/20/2021       18.1       5.6       5.7       0.00%  
Total Performing SBA 7(a) Unguaranteed Investments                           $ 258,726.7     $ 229,400.0     $ 231,250.4       92.41%  
Non-Performing SBA 7(a) Unguaranteed Investments(3)
                                                                 
200 North 8th Street Associates LLC
and Enchanted Acres Fa 200 North 8th Street Reading PA 19601
    Food Manufacturing       Term Loan       6.25%       5/4/2028       468.8       469.3       443.4       0.18%  
214 North Franklin, LLC
and Winter Ventures, Inc.
214-250 North Franklin Street Red Lion PA 17356
    Nonstore Retailers       Term Loan       6%       11/29/2037       81.7       81.7             0.00%  
636 South Center Holdings, LLC
and New Mansfield Brass and Aluminum Co 636 South Center Street New Washington OH 44854
    Primary Metal Manufacturing       Term Loan       Prime plus 2.75%       3/20/2039       70.8       71.0       68.0       0.03%  
A + Quality Home Health Care, Inc.
10826 NW 47th St, Sunrise Fl 33351. St, Sunrise FL 33351
    Ambulatory Health Care Services       Term Loan       6%       8/1/2016       1.3       1.3       1.2       0.00%  
Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc
6611 Alameda Ave El Paso TX 79905
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       11/25/2040       143.1       143.4       133.6       0.05%  
Al-Mustafa Enterprise, Inc.
and Al-Mustafa Enterprise Inc
6269 Caledon Road King George VA 22485
    Motor Vehicle and Parts Dealers       Term Loan       6.25%       9/18/2040       129.3       129.5       105.3       0.04%  
AUM Estates, LLC
and Sculpted Figures Plastic Surgery Inc.
8212 Devon Ct Myrtle Beach SC 29572
    Ambulatory Health Care Services       Term Loan       6%       3/14/2038       305.3       305.7             0.00%  
AWA Fabrication & Construction, L.L.C. 811 Country Road #99 Headland AL 36345     Fabricated Metal Product Manufacturing       Term Loan       6%       4/30/2025       34.7       34.8             0.00%  
B&B Fitness and Barbell, Inc.
dba Elevations Health Club Route 611 North Scotrun PA 18355
    Amusement, Gambling, and Recreation Industries       Term Loan       6%       6/22/2035       193.9       194.2       197.3       0.08%  
Baker Sales, Inc.
d/b/a Baker Sales, Inc.
60207 Camp Villere Road Slidell LA 704604223
    Nonstore Retailers       Term Loan       6%       3/29/2036       177.0       177.4       78.1       0.03%  
Fieldstone Quick Stop LLC
Barber Investments LLC
Thadius M B 190 Route 3 South China ME 04358
    Gasoline Stations       Term Loan       6%       9/30/2038       646.4       648.0       255.3       0.10%  
Barber Investments LLC
and Fieldstone Quickstop LLC
and Maine Dollar D 190 Rt
3 South China ME 04358
    Gasoline Stations       Term Loan       6.25%       8/15/2039       146.0       146.3             0.00%  
Chickamauga Properties, Inc., MSW Enterprises, LLP 214 Sutherland Way Rocky Face GA 30740     Amusement, Gambling, and Recreation Industries       Term Loan       6.25%       12/22/2035       59.0       59.0       57.4       0.02%  
Chickamauga Properties, Inc.
and MSW Enterprises, LLP 214 Sutherland Way Rocky Face GA 30740
    Amusement, Gambling, and Recreation Industries       Term Loan       6.25%       10/19/2022       43.4       43.5             0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

194


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Custom Software, Inc.
a Colorado Corporation dba M-33 Access 380 E. Borden Road Rose City MI 48654
    Professional, Scientific, and Technical Services       Term Loan       6.25%       6/17/2021     $ 276.5     $ 277.2     $ 39.3       0.02%  
Custom Software, Inc.
a Colorado Corporation dba M-33 Access 380 E. Borden Rd Rose City MI 48654
    Broadcasting (except Internet)       Term Loan       6.25%       4/30/2022       94.1       94.3             0.00%  
D&G Capital LLC
dba Miami Grill 277 2521 North Federal Highway, Unit C Boca Raton FL 33431
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2025       86.6       86.8       59.8       0.02%  
Daniel S. Fitzpatrick
dba Danny's Mobile Appearance Reconditioning Ser 1708 Royalty Ave. Odessa TX 79761
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/29/2018       0.9       0.9       0.9       0.00%  
Danjam Enterprises, LLC
dba Ariel Dental Care 1-3 Plattekill Avenue New Paltz NY 12561
    Ambulatory Health Care Services       Term Loan       6%       3/31/2035       125.8       126.0       128.0       0.05%  
Danjam Enterprises, LLC
dba Ariel Dental Care 1-3 Plattekill Avenue
New Paltz NY 12561
    Ambulatory Health Care Services       Term Loan       6%       3/29/2023       64.7       64.8       59.9       0.02%  
Dean 1021 LLC
dba Pure Pita 106 Central Avenue Westfield NJ 07090
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/29/2025       56.5       56.6       44.8       0.02%  
Dill Street Bar and Grill Inc
and WO Entertainment, Inc
1708 University Avenue Muncie IN 47303
    Food Services and Drinking Places       Term Loan       6%       9/27/2027       78.2       78.4       2.7       0.00%  
Dr. Francis E. Anders, DVM
24 West Ash Creek Road Crawford NE 69339
    Professional, Scientific, and Technical Services       Term Loan       6%       8/9/2015       1.6       1.6       1.6       0.00%  
E & I Holdings, LP & PA Farm Products, LLC
1095 Mt Airy Road Stevens PA 17578
    Food Manufacturing       Term Loan       6%       4/30/2030       4,874.0       4,923.2       2,803.5       1.12%  
ENI Inc, Event Networks Inc, ENI Worldwide LLC
and Spot Shop Inc
1805 Shea Center Drive, Suite 280 Highlands Ranch CO 80129
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/25/2024       386.4       386.8       212.5       0.08%  
ENI Inc.
dba ENI Group, Inc
1805 Shea Center Drive, Suite 280 Highlands Ranch CO 80129
    Other Information Services       Term Loan       Prime plus 2.75%       12/11/2025       32.8       32.8             0.00%  
Europlast Ltd
100 Industrial Lane Endeavor WI 53930
    Plastics and Rubber Products Manufacturing       Term Loan       6%       9/26/2022       315.6       316.4       31.0       0.01%  
Europlast Ltd
100 Industrial Lane Endeavor WI 53930
    Plastics and Rubber Products Manufacturing       Term Loan       6%       5/31/2023       155.2       155.6       87.7       0.04%  
Event Mecca LLC
141 South Waldron Lane Wynantskill NY 12198
    Other Information Services       Term Loan       6%       4/10/2023       12.4       12.4       9.5       0.00%  
EZ Towing, Inc.
14710 Calvert Street Van Nuys CA 91411
    Support Activities for Transportation       Term Loan       6%       1/31/2023       86.2       86.4       8.2       0.00%  
Frozen Treats of Hollywood FL, LLC
dba Sub Zero Ice Cream 1815 N. Young Circle Hollywood FL 33020
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/22/2025       14.0       14.0             0.00%  
Gator Communications Group LLC
dba Harvard Printing Group 175 US Highway 46 West Fairfield NJ 07004
    Printing and Related Support Activities       Term Loan       6.25%       3/30/2022       232.9       233.5       27.6       0.01%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

195


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Gator Communications Group LLC
dba Harvard Printing Group 175 US Highway 46 West Fairfield NJ 07004
    Printing and Related Support Activities       Term Loan       6.25%       4/25/2022     $ 157.4     $ 157.8     $       0.00%  
Gator Communications Group, LLC
dba Harvard Printing Group 175 US Highway 46 West Fairfield NJ 07004
    Printing and Related Support Activities       Term Loan       6.25%       3/27/2023       13.3       13.3             0.00%  
Grand Manor Realty, Inc.
& Kevin LaRoe 318 S. Halsted Street Chicago IL 60661
    Real Estate       Term Loan       6%       2/20/2023       18.9       19.0       18.4       0.01%  
Guzman Group, LLC
2465 W 80th Street Hialeah FL 33016
    Rental and Leasing Services       Term Loan       6%       1/30/2016       183.8       184.3       175.7       0.07%  
Harrelson Materials Management, Inc
1101 Russell Road Shreveport LA 71107
    Waste Management and Remediation Services       Term Loan       6%       6/24/2021       464.0       465.2       24.6       0.01%  
Hartford Cardiology Group LLC
and Ideal Nutrition of Connecticut LLC
345 North Main Street West Hartford CT 06117
    Ambulatory Health Care Services       Term Loan       6.25%       6/30/2026       478.9       480.1       76.4       0.03%  
Hemingway Custom Cabinetry LLC
3400 Fairfield Avenue Bridgeport CT 06605
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/25/2025       198.1       198.6       130.6       0.05%  
Home Again Restaurant LLC
9524 Camp Lake Rd Salem WI 53168
    Food Services and Drinking Places       Term Loan       6.25%       6/30/2040       58.7       58.8       48.2       0.02%  
J Olson Enterprises LLC
and Olson Trucking Direct, Inc.
311 Ryan St Holmen WI 54636
    Truck Transportation       Term Loan       6%       6/28/2025       626.9       628.4       86.1       0.03%  
J&M Concessions, Inc. dba A-1 Liquors 19 Century Avenue Maplewood MN 55119     Food and Beverage Stores       Term Loan       6.25%       3/3/2039       130.2       130.6       70.8       0.03%  
J&M Concessions Inc
dba A 1 Liquors 19 Century Ave N Maplewood MN 55119
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/27/2025       79.8       80.0       22.9       0.01%  
Jenny's Wunderland, Inc.
3666 East 116th Cleveland OH 44105
    Social Assistance       Term Loan       6%       6/29/2036       149.7       150.1       38.4       0.02%  
Karykion, Corporation dba Karykion Corporation 101 Wall Street Princeton NJ 08540     Professional, Scientific, and Technical Services       Term Loan       6%       6/28/2022       144.4       144.8       133.0       0.05%  
Kantz LLC
and Kantz Auto LLC
dba Kantz's Hometown Auto 200 West Adams St Cochranton PA 16314
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       10/29/2039       63.4       63.5       17.4       0.01%  
Kids at Heart, LLC
dba Monster Mini Golf 10 Newbury Street Danvers MA 01923
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/22/2026       21.5       21.6       14.5       0.01%  
Krishna of Orangeburg, Inc.
826 John C. Calhoun Drive Orangeburg SC 29115
    Accommodation       Term Loan       6%       2/20/2032       10.3       10.3       5.6       0.00%  
Kup's Auto Spa Inc
121 Marktree Road Centereach NY 11720
    Repair and Maintenance       Term Loan       6.25%       11/15/2038       365.9       366.8       374.4       0.15%  
Kup’s Auto Spa, Inc.
121 Marktree Road Centereach NY 11720
    Repair and Maintenance       Term Loan       6.25%       10/23/2025       54.6       54.7       53.4       0.02%  
Las Torres Development LLC
dba Houston Event Centers 8320, 8342 and 8346 Almeda Genoa Road Houston TX 77075
    Real Estate       Term Loan       6%       8/27/2028       51.0       51.0             0.00%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

196


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
M and C Renovations Inc
3951 Lorna Road Birmingham AL 35244
    Construction of Buildings       Term Loan       Prime plus 2.75%       10/31/2024     $ 14.4     $ 14.4     $ 11.1       0.00%  
Matchless Transportation LLC
dba First Class Limo 31525 Aurora Road # 5 Solon OH 44139
    Transit and Ground Passenger Transportation       Term Loan       6.25%       8/3/2022       126.2       126.5       13.7       0.01%  
Milliken and Milliken, Inc.
dba Milliken Wholesale Distribution 101 South McCall Road Englewood FL 34223
    Merchant Wholesalers, Durable Goods       Term Loan       6%       6/10/2036       152.8       152.9       138.7       0.06%  
Mojo Brands Media, LLC
3260 University Blvd., Suite 100 Winter Park FL 32792
    Broadcasting (except Internet)       Term Loan       6%       8/28/2023       723.1       725.0       433.6       0.17%  
Morris Glass and Construction 40058 Highway 30 Astoria OR 97103     Specialty Trade Contractors       Term Loan       6%       3/7/2021       44.8       44.8             0.00%  
New Paltz Dental Care, PLLC
dba Ariel Dental Care 1-3 Plattekill Avenue New Paltz NY 12561
    Ambulatory Health Care Services       Term Loan       6%       6/19/2025       97.3       97.5       90.7       0.04%  
Our Two Daughters L.L.C. dba Washington's Restaurant 2350 Harney Rd
Littlestown PA 17340
    Food Services and Drinking Places       Term Loan       6%       6/18/2026       674.2       681.0       64.4       0.03%  
Planet Verte, LLC
dba Audio Unlimited 299 Duffy Ave Hicksville NY 11801
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/20/2020       16.4       16.4       14.5       0.01%  
Planet Verte, LLC
dba Audio Unlimited of Oceanside 299 Duffy Ave Hicksville NY 11801
    Administrative and Support Services       Term Loan       Prime plus 2.75%       11/28/2019       16.1       16.1             0.00%  
Professional Systems, LLC
and Professional Cleaning 6055 Lakeside Common Dr., Suite 440 Macon GA 31210
    Administrative and Support Services       Term Loan       6%       7/30/2020       131.6       131.8       8.0       0.00%  
Route 130 SCPI Holdings LLC
Route 130 SCPI Operations LLC
d 423-429 Route 156 Trenton NJ 08620
    Food Services and Drinking Places       Term Loan       6.25%       9/30/2039       535.1       536.4       302.4       0.12%  
Sheikh M Tariq dba Selbyville Foodrite 46-48 N. Main Street Selbyville DE 19975     Gasoline Stations       Term Loan       6%       8/26/2024       21.2       21.2             0.00%  
Shivsakti, LLC
dba Knights Inn 622 East Wythe Street Petersburg VA 23803
    Accommodation       Term Loan       6.25%       12/20/2032       8.0       8.0             0.00%  
Sourceco Limited Liability Company 17 Palmer Avenue West Long Branch NJ 07764     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/17/2025       57.4       57.5       54.4       0.02%  
Sovereign Communications LLC
26 E 3 Mile Rd, Sault Sainte Marie MI 49783
    Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/7/2024       707.3       709.1       670.0       0.27%  
Square Deal Siding Company, LLC
dba Square Deal Siding Company 824 Curtis Avenue Kenner LA 70062
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/18/2025       20.2       20.3       19.1       0.01%  
STK Ventures Inc
dba JP Dock Service & Supply 12548 N State Highway 7 Climax Springs MO 65324
    Specialty Trade Contractors       Term Loan       6%       5/9/2037       31.6       31.6       0.8       0.00%  
Stormrider Inc
dba Shirley's Stormrider Inc
1335 N. Gable Road St. Hedwig TX 78152
    Truck Transportation       Term Loan       Prime plus 2.75%       9/23/2025       60.2       60.3       58.7       0.02%  
Stormrider Inc
dba Shirley's Stormrider, Inc
1335 N Gable Road St Hedwig TX 78152
    Truck Transportation       Term Loan       Prime plus 2.75%       11/25/2024       126.6       126.9       123.3       0.05%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

197


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Stormwise South Florida
dba Stormwise Shutters 13015 NW 45th Avenue Opa Locka FL 33054
    Specialty Trade Contractors       Term Loan       6%       11/7/2036     $ 110.9     $ 111.2     $       0.00%  
Tequila Beaches, LLC
dba Fresco Restaurant 240 Captain Thomas Blvd West Haven CT 06516
    Food Services and Drinking Places       Term Loan       6%       9/16/2021       0.2       0.2       0.2       0.00%  
The Law Office of Joseph A. Foistner Esquire and Affiliates, PC 1 Intl PL 100 Oliver St. Suite 1400 Boston MA 02110     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/26/2027       62.3       62.5             0.00%  
Will Zac Management LLC
dba Papa John's 2410 West Jefferson Street, Suite B Joliet IL 60435
    Food Services and Drinking Places       Term Loan       6.25%       12/19/2024       42.4       42.5       41.4       0.02%  
Winter Ventures Inc
and 214 N Franklin LLC
214-250 North Franklin Street Red Lion PA 17356
    Nonstore Retailers       Term Loan       6%       4/29/2024       56.5       56.6             0.00%  
Winter Ventures Inc
dba Qualitybargainbooks and Qualitybargainmall 415 Norway Street York PA 17403
    Nonstore Retailers       Term Loan       6%       12/23/2024       149.1       149.3             0.00%  
Winter Ventures Inc
dba Qualitybargainbooks and Qualitybargainmall 415 Norway Street York PA 17403
    Nonstore Retailers       Term Loan       6%       4/3/2029       134.4       134.5             0.00%  
Wired LLC
and Moulison North Corporation 10 Iron Trail Road Biddeford ME 04005
    Specialty Trade Contractors       Term Loan       6.25%       6/30/2024       323.1       323.9       314.9       0.13%  
Wired LLC
and Moulison North Corporation 10 Iron Trail Road Biddeford ME 04005
    Specialty Trade Contractors       Term Loan       6.25%       7/3/2024       137.9       138.3             0.00%  
Total Non-Performing SBA Unguaranteed Investments                           $ 17,247.2     $ 17,328.4     $ 8,506.9       3.40%  
Total SBA Unguaranteed Investments                           $ 275,973.9     $ 246,728.4     $ 239,757.3       95.81%  
Performing SBA Guaranteed Investments(4)
                                                                 
Old Dominion Transportation Group, Inc.
1308 Devils Reach Road Woodbridge VA 22192
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       6/28/2027       4,533.0       3,400.0       3,756.7       1.50%  
Qycell Corporation
600 S Etiwanda Ave Ontario CA 91761
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/30/2027       305.0       228.8       255.3       0.10%  
J. T. O'Neill Company, L.L.C 19972 Willowin Farm Lane Purcellville VA 20132     Real Estate       Term Loan       Prime plus 2.75%       6/30/2027       100.0       85.0       94.8       0.04%  
Oakhill Farms, LLC
15 Carl Street Johnston
RI 02919
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2030       400.0       300.0       335.6       0.13%  
Veola's Day Spa and Wellness Center Inc.
2150 West 95th Street Chicago IL 60643
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2027       61.0       51.9       57.8       0.02%  
Bone Bar & Grill LLC
3547 Philipsburg Bigler Hwy West Decatur PA 16878
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2042       293.8       220.4       250.4       0.10%  
BQRS, Inc.
DBA Gresham Meineke Car Care Center 18081 SE Division Street Portland OR 97236
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/30/2027       250.0       187.5       209.3       0.08%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

198


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
J&M Civil Construction Services LLC
1221 County Road 4371 Decatur TX 76234
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2027     $ 400.0     $ 300.0     $ 334.8       0.13%  
Roast Beef Levittown LLC
dba Arby's 2080 Hempstead Turnpike East Meadow
NY 11554
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/13/2026       1,826.3       1,369.7       1,520.4       0.61%  
JBK Truck Trailer and Bus Inc.
8669 South State Road 67 Camby IN 46113
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/23/2042       246.1       184.6       209.7       0.08%  
Pecos Entertainment LLC
dba State Theater and Pecos Inn LLC
dba Econo 421 S. Oak Street Pecos TX 79772
    Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       3/27/2042       548.6       411.5       466.5       0.19%  
Swantown Inn & Spa LLC
1431 11th Avenue SE Olympia WI 98501
    Accommodation       Term Loan       Prime plus 2.75%       5/26/2042       29.5       22.1       25.1       0.01%  
Bear Creek Entertainment LLC
dba The Woods at Bear Creek 3510 Bear Creek Road Franklinville NY 14737
    Accommodation       Term Loan       Prime plus 2.75%       8/12/2041       1,116.4       837.3       948.2       0.38%  
Four Seasons Laser Center Inc.
4720 NW 2nd Avenue Unit D-104 and Unit D-105 Boca Raton FL 33498
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/26/2042       653.5       490.1       556.9       0.22%  
Scarlet Spartan Inc. dba FastSigns of Brighton 533 W. Grand River Avenue Brighton MI 48116     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/19/2027       150.4       112.8       125.8       0.05%  
131 Miles LLC
and Ohm Shubh Laxmi, LLC. dba Mr Hero 13215 Miles Avenue Cleveland OH 44105
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/3/2041       354.5       261.7       297.1       0.12%  
Eickmann Management Group LLC
dba Jimmy Johns of Dundee 568 Techumseh Street Dundee MI 48131
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/17/2027       272.9       203.4       226.0       0.09%  
House of Bread & Coffee Corp dba Casa Do Pao 22829 State Road 7 Boca Raton FL 33428     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/27/2042       554.0       410.5       466.0       0.19%  
Marvic Enterprises Inc
dba Jordan's Liquor 199 Taunton Avenue East Providence RI 02914
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/10/2042       717.9       538.4       611.4       0.24%  
AP6 LLC
and Amishp LLC
82 84 Hemingway Avenue East Haven CT 06512
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2042       435.2       325.5       369.4       0.15%  
Sneads Ferry Foods, Inc.
dba DQ Grill & Chill 920 Highway 210 Sneads Ferry NC 28460
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/27/2042       733.9       550.4       623.5       0.25%  
1872 Rosecrans, LLC
dba Goodbar 1872 Rosecrans Street San Diego CA 92106
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/9/2027       174.4       130.8       145.9       0.06%  
SG Linke LLC
413 N Alfaya Trail P11 Orlando FL 32828
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       5/12/2027       236.4       177.3       197.9       0.08%  
Foxhop Fitness, LLC
4211 NW Federal Highway Jensen Beach FL 34957
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/28/2027       167.2       125.4       139.9       0.06%  
Total SBA Guaranteed Performing Investments                           $ 14,560.0     $ 10,925.1     $ 12,224.4       4.88%  
Total SBA Unguaranteed and Guaranteed Investments                           $ 290,533.9     $ 257,653.5     $ 251,981.7       100.69%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

199


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Controlled Investments
                                                                       
Advanced Cyber Security Systems, LLC,
3880 Veterans Memorial
Hwy. Suite 201 Bohemia, NY 11716
    Data processing, hosting and related services       50% Membership
Interest
      —%           $     $     $       0.00%  
                Term Loan       3%       December
2014
      1,120.0       381.0             0.00%  
Automated Merchant Services, Inc.
12230 Forest Hill Blvd. Wellington, FL 33414
    Data processing, hosting and related services       100% Common
Stock
      —%                               0.00%  
CDS Business Services, Inc., 1981 Marcus Ave. Lake Success, NY 11042     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       100% Common
Stock
      —%                   4,428.0       3,500.0       1.40%  
                Line of credit       Prime plus 2.5%       August
2018
      8,620.0       8,620.0       8,620.0       3.44%  
Newtek Technology Solutions, Inc., 1904 W. Parkside Lane Phoenix, AZ 85027     Data processing, hosting and related services       100% Common
Stock
      —%                   8,384.0       17,500.0       6.99%  
Fortress Data Management LLC,
UTB/TSC ITEC Campus 301 Mexico Blvd. Suite H4-A Brownsville, TX 78520
    Data processing, hosting and related services       100% Membership
Interest
      —%                               0.00%  
Newtek Insurance Agency, LLC, 1981 Marcus Ave. Lake Success, NY 11042     Insurance Carriers and Related Activities       100% Membership
Interest
      —%                         2,500.0       1.00%  
PMTWorks Payroll, LLC, 1981 Marcus Ave. Lake Success, NY 11041     Data processing, hosting and related services       100% Membership
Interest
      —%                   725.1             0.00%  
             Term Loan
      10% – 12%       Various
maturities
through
May 2018
      1,685.0       1,685.0             0.00%  
Secure CyberGateway Services, LLC, 7920 Belt Line Road, Suite 1150 Dallas, TX 75254     Data processing, hosting and related services       66.7%
Membership
Interest
      —%                               0.00%  
                Term Loan       10%       June 2017       2,400.0       300.0             0.00%  
Small Business Lending, LLC,
1981 Marcus Ave. Lake Success, NY 11041
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       100% Common
Stock
      —%                         2,500.0       1.00%  
Summit Systems and Designs,
UTB/TSC ITEC Campus 301 Mexico Blvd., Suite H4-A Brownsville, TX 78520
    Data processing, hosting and related services       100% Membership
Interest
      —%                               0.00%  
ADR Partners, LLC
dba banc-serv Partners, LLC, 777 E. Main St., Westfield,
IN 46074
    Securities, Commodity Contracts, and Other Financial Investments
and Related Activities
      100% Membership
Interest
      —%                   5,260.3       5,400.0       2.16%  
Premier Payments LLC, 1981 Marcus Ave. Lake Success, NY 11042     Data processing, hosting and related services       100% Membership
Interest
      —%                   16,438.0       21,000.0       8.39%  
International Professional Marketing, Inc.,
151 W. 30th Street, New York, NY 10001
    Professional, Scientific,
and Technical Services
      100% Common
Stock
      —%                   11,120.0       11,120.0       4.44%  
             Line of credit       Prime plus 0.5%       April 2018       250.0       250.0       250.0       0.10%  
SIDCO, LLC,
151 W. 30th Street, New York, NY 10001
    Professional, Scientific,
and Technical Services
      100% Membership
Interest
      —%                               0.00%  
Universal Processing Services of Wisconsin, LLC, 6737 W. Washington Street West Allis, WI 53214     Data processing, hosting and related services       100% Membership
Interest
      —%                         64,000.0       25.58%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

200


 
 

TABLE OF CONTENTS

               
Portfolio Company   Industry   Type of Investment   Interest
rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Titanium Asset Management LLC, 1981 Marcus Ave. Lake Success, NY 11041     Administrative and Support Services       Term Loan       3%       July 2017     $ 2,200.0     $ 193.9     $       0.00%  
                100% Membership
Interest
      —%                               0.00%  
Excel WebSolutions, LLC,
888 East Brighton Ave. Syracuse, NY 13205
    Data processing, hosting and related services       Term Loan       10%       September
2018
      1,020.2       661.2       614.5       0.25%  
             50% Membership
Interest
      —%                               0.00%  
Total Controlled Investments                           $ 17,295.2     $ 58,446.5     $ 137,004.5       54.75%  
Non-control/Non-affiliate Investments
                                                                       
Aitheras Aviation Group, LLC, 2301 N. Marginal Rd. Cleveland, OH 44114     Air Transportation       Term Loan       6.75%       8/14/2017     $ 3,254.8     $ 3,254.8     $ 3,254.8       1.30%  
Total Non-control/Non-affiliate Investments                           $ 3,254.8     $ 3,254.8     $ 3,254.8       1.30%  
Investments Money Market Funds
                                                                       
UBS Select Treasury Institutional
Fund – 0.74% yield
                                        9.4       9.4       9.4       0.00%  
Peapack Gladstone High Yield
IMMA – 0.30% yield
                            25.9       25.9       25.9       0.01%  
Total Money Market Funds                           $ 35.3     $ 35.3     $ 35.3       0.01%  
Total Investments                           $ 311,119.2     $ 319,390.1     $ 392,276.3       156.76%  

 
 
See accompanying notes to unaudited condensed consolidated financial statements.

201


 
 

TABLE OF CONTENTS

MANAGEMENT

Our business and affairs are managed under the direction of our board of directors. Our board of directors elects our officers who serve at its discretion. Our board of directors has five members, two of whom are “interested persons” as defined in Section 2(a)(19) of the 1940 Act and three of whom are not interested persons, whom we refer to as our independent directors. The responsibilities of each director will include, among other things, the oversight of our investment activity, the quarterly valuation of our assets, and oversight of our financing arrangements. Our board of directors has also established an Audit Committee and a Compensation, Corporate Governance and Nominating Committee, and may establish additional committees in the future.

Directors and Executive Officers

As of August 21, 2017, our directors and executive officers are as set forth below. The address for each director and executive officer is c/o Newtek Business Services Corp., 1981 Marcus Avenue, Suite 130, Lake Success, New York 11042.

       
Name   Age   Position with Us   Director
Since
  Expiration
of Term
Non-Independent Directors:
                   
Barry Sloane(1)   57   Chairman, Chief Executive Officer and President   1999   2018
Peter Downs(4)   52   Director, Chief Lending Officer   2014   2018
Independent Directors:
                   
Gregory Zink(2)(3)   60   Director   2017   2019
Richard J. Salute(2)(3)   71   Director   2015   2020
Salvatore F. Mulia(2)(3)   69   Director   2005   2020

(1) Mr. Sloane is not an Independent Director because he is our President and Chief Executive Officer.
(2) Member of the Audit Committee.
(3) Member of the Compensation, Corporate Governance and Nominating Committee.
(4) Mr. Downs is not an Independent Director because he is our Chief Lending Officer and President of NSBF.

Executive Officers Who Are Not Directors

   
Name   Age   Position with Us
Jennifer Eddelson   44   Executive Vice President, Chief Accounting Officer
Michael Schwartz   57   Chief Legal Officer, Chief Compliance Officer and Secretary
John Raven   52   Chief Technology Officer, Chief Information Security Officer
Former Executive Officers:
         
Dean Choksi(1)   37   Former Treasurer
Nilesh Joshi(2)   42   Chief Information Officer

(1) Effective as of July 7, 2016, the Company eliminated the positon of Treasurer and consolidated the Treasurer function within the Company’s Finance Department. As a result, Mr. Choksi left the Company effective July 7, 2016.
(2) Effective as of July 3, 2017, the Company eliminated the position of Chief Information Officer (“CIO”), and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. See “Recent Developments — Elimination and Consolidation of the CIO Position.”

202


 
 

TABLE OF CONTENTS

The following is a summary of certain biographical information concerning our directors and executive officers.

Non-Independent Directors

Barry Sloane.  Mr. Sloane has served as our Chairman and Chief Executive Officer since 1999 and as our President since 2008. Mr. Sloane founded Newtek in 1998 and has been an executive officer of each of the Company-sponsored certified capital companies beginning in 1999. In addition, in April 2015 Mr. Sloane became a director with AK Capital LLC (“AKC”), a securities brokerage company. From September 1993 through July 1995, Mr. Sloane was a Managing Director of Smith Barney, Inc. While there, he directed the Commercial and Residential Real Estate Securitization Unit, and he was national sales manager for institutional mortgage and asset backed securities sales. From April 1991 through September 1993, Mr. Sloane was founder and President of Aegis Capital Markets, a consumer loan origination and securitization business which was eventually taken public with the name of “Aegis Consumer Funding.” From October 1988 through March 1991, Mr. Sloane was Senior Vice President of Donaldson, Lufkin and Jenrette, where he was responsible for directing sales of mortgage-backed securities. From August 1982 to September 1988, Mr. Sloane was a senior mortgage security salesman and trader for Bear Stearns, L.F. Rothschild, E.F. Hutton and Paine Webber.

Mr. Sloane’s broad business and financial experience and his knowledge of the Company’s businesses have been of great value to the other members of the Board of Directors and qualify him to serve on our Board of Directors and as the Chairman of our Board of Directors.

Peter Downs.  Mr. Downs is the Company’s Chief Lending Officer and was appointed as director in connection with the Company’s conversion to a business development company on November 12, 2014. Mr. Downs joined the Company in 2003 and has been the President of Newtek Small Business Finance, LLC (“NSBF”) and a member of the Risk Committee for NSBF. He has had primary responsibility for the development of the Company’s lending policies and procedures, portfolio and marketing, from its inception. Prior to joining Newtek in 2003, Mr. Downs spent sixteen years in various small business lending roles within the banking industry. From 1990 to 2001, he was employed with European American Bank (“EAB”), where he held various positions including New Business Development Officer for Small Business Lending and Group Manager of Retail Small Business Lending which encompassed the underwriting and servicing of the bank’s small business loan portfolio. Subsequent to EAB’s acquisition by Citibank, Mr. Downs ran the bank’s SBA lending portfolio in New York, and eventually was named the National Director of SBA lending, after which he was responsible for coordinating the bank’s SBA underwriting and sales efforts in all Citibank markets across the country. In addition to his banking experience, he has been involved in several non-profit small business advisory boards, and has been a member of the National Association of Government Guaranteed Lenders (NAGGL) Regional Technical Issues Committee.

Mr. Down’s history with the Company and extensive experience in developing policies and procedures, portfolios and marketing in the small business lending space provides our Board of Directors with the valuable insight of an experienced lender.

Independent Directors

Richard J. Salute.  Mr. Salute served as Capital Markets and SEC Practice Director at J.H. Cohn and CohnReznick LLP (“CohnReznick”) from 2004 to 2014. Prior to that, he spent 29 years, from 1972 to 2001, at Arthur Andersen managing complex audits for public and private companies. During his tenure, he was responsible for providing clients with strategic planning services as well as consulting on corporate finance, mergers and acquisitions, and process evaluation. His clients included large multinational companies and entrepreneurial start-ups. In addition to his client responsibilities, he started three business lines for Arthur Anderson: the Enterprise Group (New York Metropolitan area), the Technology Practice (New York office) and the Bankruptcy and Corporate Recovery Practice (nationwide). More recently, Mr. Salute served as Chief Financial Officer of PAVmed Inc. from June 2014 to September 2015. Mr. Salute is a graduate of Adelphi University and a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants. Mr. Salute also has served as a director of Walker Innovation Inc. since May 2015.

203


 
 

TABLE OF CONTENTS

Mr. Salute has more than 38 years of audit, accounting, and tax experience. These extensive audit, accounting, and tax experience and relationships with industry players are an asset to our Board of Directors. Mr. Salute’s expertise and experience also qualify him to serve as chairman of the Audit Committee and as the Audit Committee Financial Expert. Mr. Salute’s experience with SEC matters includes numerous initial public offerings and his experience representing publicly traded, as well as over-the-counter market traded, clients provides a significant addition to the board of directors.

Gregory Zink.  From 1998 to date, Mr. Zink has been the principal of the Lowell Group, LLC, a management consulting firm which provides strategic, operational, marketing and financial consulting assistance to start-up, small and medium size businesses. In addition, since 1988 Mr. Zink has been the chief executive officer, chief financial officer and a director of Nautilus Group Japan LTD, an international distributor of commercial fitness equipment. Mr. Zink was an executive vice president of the Company from 2000 to 2005. Mr. Zink was also previously employed by Touche Ross/Deloitte Consulting, AT&T, and is a graduate of the General Electric Financial Management Program. Mr. Zink attended Pennsylvania State University and has an MBA from the Wharton School of Business at the University of Pennsylvania.

Mr. Zink’s professional experience provides a significant addition to the Board of Directors. Mr. Zink has many years of experience providing consulting and financial advice to small and medium sized businesses, provides a significant addition to the Board of Directors.

Salvatore F. Mulia.  Mr. Mulia has been a financial advisor at RTM Financial Services, Westport, CT, with an emphasis on leasing and lending advisory services since February 2003. From February 2001 to February 2003, Mr. Mulia was Executive Vice President of Pitney Bowes Capital Corp, Shelton, CT which was engaged in providing financial services to business customers. Prior to that, from 1980 to 1993, Mr. Mulia held senior management positions within General Electric’s Financial Services Division, GE Capital Corporation (“GECC”), and during that time, from 1980 through 1993 he was responsible for developing new products and business initiatives in financial services. During his tenure at GECC Mr. Mulia was a principal in GEVEST, GECC’s investment banking unit, where he headed syndication and led acquisition teams which acquired leasing companies including TransAmerica Leasing, Chase Manhattan’s leasing subsidiary and LeaseAmerica.

Mr. Mulia’s experience in the financial services industry as well as working with smaller to mid-sized companies needing capital and debt and his understanding of these businesses provides a significant addition to our Board of Directors. Mr. Mulia has many years of experience with financial companies working with smaller to mid-sized companies needing capital and debt. His understanding of the dynamics of these businesses has been particularly helpful in addressing similar issues of the Company and this experience provides a significant addition to the board of directors.

Executive Officers Who Are Not Directors

Jennifer Eddelson is a certified public accountant licensed in the state of New York and has served as Executive Vice President and Chief Accounting Officer of the Company since July 1, 2011. Previously Ms. Eddelson was employed by the Company since October 2004 as Corporate Controller, Vice President of Financial Reporting since August 2006, and in these and her current capacities has had a principal responsibility for the development and implementation of the Company’s accounting policies and practices. Previously, from June 1996 to October 2014 Ms. Eddelson practiced as a certified public accountant for eight years with Janover, LLC, a public accounting firm located in New York, primarily in the audit and tax area. Ms. Eddelson is a member of the NYS Society of CPAs and a member of the AICPA.

Michael Schwartz has served as Chief Legal Officer and Corporate Secretary since January 2015. In October 2015, Mr. Schwartz was appointed the Company’s Chief Compliance Officer. Previously, Mr. Schwartz was Senior Counsel to the Company since November 2013. Prior to joining the Company, Mr. Schwartz spent twenty-two years in private practice specializing in complex litigation in the fields of securities, mergers and acquisitions, corporate governance, commercial law, unfair employment practices, consumer protection and antitrust. Mr. Schwartz served on the Company’s Board of Directors from 2005 through 2009.

204


 
 

TABLE OF CONTENTS

John Raven has served as the Chief Information Security Officer and Chief Technology Officer of Newtek Business Services Corp. since January 2016. In addition, Mr. Raven serves as President and COO of Newtek Technology Solutions, a controlled portfolio company of the Company. He is an information security specialist, technology executive and entrepreneur with a history from start-up to mature large-scale enterprises. Mr. Raven has two decades of experience as a technology leader and operator, leading several large consulting engagements for Cap Gemini, Ernst & Young, Perot Systems and IBM. From 1999 to 2003, Mr. Raven served as Chief Technology Officer, President and Chief Operating Officer of YP.com, where he was instrumental in their growth and public market offering.

Former Named Executive Officers

Dean Choksi was the Treasurer of the Company from April 2015 through July 7, 2016. Effective as of July 7, 2016, the Company eliminated the positon of Treasurer and consolidated the Treasurer function within the Company’s Finance Department.

Nilesh Joshi served as the Chief Information Officer of the Company from April 2016 to July 3, 2017. Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY.

The Board of Directors and Board of Directors Meetings

Newtek’s Board of Directors and management are committed to responsible corporate governance to ensure that the Company is managed for the long-term benefit of its shareholders. To that end, the Board of Directors and management periodically review and update, as appropriate, the Company’s corporate governance policies and practices. In doing so, the Board of Directors and management review published guidelines and recommendations of institutional shareholder organizations and current best practices of similarly situated public companies. The Board of Directors and management also regularly evaluate and, when appropriate, revise the Company’s corporate governance policies and practices in accordance with the requirements of the Sarbanes-Oxley Act of 2002 and the rules and listing standards issued by the SEC and The Nasdaq® Stock Market, Inc. (“Nasdaq”) where the Company’s Common Shares are listed and traded.

During the fiscal year ended December 31, 2016, the Board of Directors held a total of 19 meetings, the Audit Committee held 5 meetings and the Compensation, Corporate Governance and Nominating Committee held 7 meetings. Each director attended at least 90% of the total number of meetings of the Board of Directors and at least 90% of the meetings of all committees on which he served. All members of the Board of Directors make a diligent effort to attend all board and committee meetings, as well as the Annual Meeting of Shareholders. In 2016, all members of the Board of Directors attended the Annual Meeting of Shareholders.

Corporate Governance Policies

The Company has adopted corporate governance policies which are available at the Investor Relations page of www.newtekone.com (http://investor.newtekbusinessservices.com/corporate-governance.cfm). The corporate governance policies are also available in print to any shareholder who requests them. These policies were adopted by the Board of Directors, among other things, to best ensure that the Board of Directors is independent from management, that the Board of Directors adequately performs its function as the overseer of management and to help ensure that the interests of the Board of Directors and management align with the interests of the shareholders.

On an annual basis, each director and executive officer is obligated to complete a Directors’ and Officers’ Questionnaire which requires disclosure of any transactions with the Company in which the director or executive officer, or any member of his or her immediate family, have a direct or indirect material interest.

Committees of the Board of Directors

The Board of Directors currently has two standing committees: the Audit Committee and the Compensation, Corporate Governance and Nominating Committee. Each member of these committees is independent as defined by applicable Nasdaq and SEC rules. A brief description of each committee is included in this prospectus and each of the committees has a written charter approved by the Board of Directors, which is available the Investor Relations page of our website at www.newtekone.com.

205


 
 

TABLE OF CONTENTS

Audit Committee.  The Board of Directors has established an Audit Committee established in accordance with the Exchange Act. The Audit Committee consists of Messrs. Salute, Mulia and Zink, and operates pursuant to its written Charter. Mr. Salute serves as Chair of the Audit Committee and currently serves as the “audit committee financial expert,” as defined under applicable SEC rules. The Audit Committee is authorized to examine and approve the audit report prepared by the independent auditors of the Company, to review and select the independent auditors to be engaged by the Company, to review the internal accounting controls and to review and approve conflict of interest or related party transactions and audit policies. In addition, the Board of Directors has determined that all members of the Audit Committee are “financially literate” as that term is defined by applicable Nasdaq and SEC rules.

Compensation, Corporate Governance and Nominating Committee.  The Board of Directors has established a Compensation, Corporate Governance and Nominating Committee. The Company’s Compensation, Corporate Governance and Nominating Committee consists of Messrs. Mulia, Salute and Zink. Mr. Mulia currently serves as Chair of the Compensation, Corporate Governance and Nominating Committee. The Compensation, Corporate Governance and Nominating Committee evaluates the compensation and benefits of the directors, officers and employees, recommends changes, and monitors and evaluates employee performance. The Compensation, Corporate Governance and Nominating Committee is generally responsible for identifying corporate governance issues, creating corporate governance policies, identifying and recommending potential candidates for election to the Board of Directors and reviewing executive and director compensation and performance.

The Compensation, Corporate Governance and Nominating Committee seeks candidates who possess the background, skills, and expertise to make a significant contribution to the Board of Directors, the Company, and its shareholders. In considering possible candidates for election as a director, the Compensation, Corporate Governance and Nominating Committee will take into account, in addition to such other factors as it deems relevant, the desirability of selecting candidates who:

Are of the highest character and integrity;
Are free of any conflict of interest;
Are willing and able to devote sufficient time to the affairs of the Company; and
Have the capacity and desire to represent the balance, best interests of the shareholders.

The Compensation, Corporate Governance and Nominating Committee has not adopted a formal policy with regard to the consideration of diversity in identifying director nominees. In determining whether to recommend a director nominee, the Compensation, Corporate Governance and Nominating Committee considers and discusses diversity, among other factors, with a view toward the needs of the Board of Directors as a whole. The Compensation, Corporate Governance and Nominating Committee generally conceptualizes diversity expansively to include, without limitation, concepts such as race, gender, national origin, differences of viewpoint, professional experience, education, skill and other qualities that contribute to the Board of Directors, when identifying and recommending director nominees. The Compensation, Corporate Governance and Nominating Committee believes that the inclusion of diversity as one of many factors considered in selecting director nominees is consistent with the Compensation, Corporate Governance and Nominating Committee’s goal of creating a Board of Directors that best serves the needs of the Company and the interest of its shareholders.

Director Independence and Executive Sessions

Nasdaq listing standards and Section 2(a)(19) of the 1940 Act require that a majority of the Board of Directors and every member of our Audit Committee and Compensation, Corporate Governance and Nominating Committee are “independent.” Our Board of Directors reviews the independence of its members annually.

The Board of Directors has determined that Messrs. Mulia, Zink and Salute qualify as “independent” as defined by applicable Nasdaq and SEC rules. In making this determination, the Board of Directors has concluded that none of these members has a relationship which, in the opinion of the Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

206


 
 

TABLE OF CONTENTS

It is the policy of the Board of Directors to hold executive sessions of the independent directors meeting without management at the conclusion of regularly scheduled meetings and as requested by a director. Mr. Salute presides over these meetings of the independent directors.

Leadership Structure

The Company currently combines the role of Chairman of the Board of Directors with the role of Chief Executive Officer. Our Board of Directors believes this provides an efficient and effective leadership model for our Company. Combining the Chairman and Chief Executive Officer roles fosters clear accountability, effective decision-making, and alignment on corporate strategy. Mr. Sloane has served as Chairman and Chief Executive Officer of the Company since 1999 and as President since 2008. As the Company’s President and Chief Executive Officer, Mr. Sloane is an “interested person” under Section 2(a)(19) of the 1940 Act. The Board of Directors continues to believe that our leadership structure is appropriate since Mr. Sloane has over 25 years of experience in our industry or related businesses, and under his leadership our management team has executed a strategy that has significantly improved our earnings growth, cash flow stability and competitiveness. No single leadership model is right for all companies at all times. Our Board of Directors recognizes that depending on the circumstances, other leadership models might be appropriate. Accordingly, our Board of Directors periodically reviews its leadership structure.

Moreover, our Board of Directors believes that its governance practices provide adequate safeguards against any potential risks that might be associated with having a combined Chairman and Chief Executive Officer. Specifically:

three of our five current directors are independent directors;
all of the members of our Audit Committee and Compensation, Corporate Governance and Nominating Committee are independent directors;
our Board of Directors and its committees regularly conduct scheduled, and as needed, meetings in executive session, out of the presence of Messrs. Sloane and Downs and other members of management;
our Board of Directors and its committees regularly conduct meetings which specifically include Messrs. Sloane and Downs;
our Board of Directors and its committees remain in close contact with, and receive reports on various aspects of the Company’s management and enterprise risk directly from our senior management and independent auditors; and
our Board of Directors and its committees interact with employees of the company outside the ranks of senior management.

The Company has not appointed a lead independent director.

Board of Directors Risk Oversight

While management is responsible for identifying, assessing and managing risk, our Board of Directors, at both the full board and committee levels, is responsible for risk oversight with a focus on the most significant risks facing the Company. The Board of Directors’ risk oversight includes, but is not limited to, the following risks:

strategic;
operational;
compliance; and
reputational.

207


 
 

TABLE OF CONTENTS

During each year, management and the Board of Directors jointly review major risks that the Company prioritizes in the following year. In 2016, the Board of Directors focused on the following areas of risk:

determining Newtek’s long-term growth;
strategic and operational planning, including acquisitions and the evaluation of the Company’s capital structure and long term debt financing;
overseeing, reviewing and approving management’s estimates of fair value of the Company’s investment portfolio. and
legal and regulatory compliance.

The Board of Directors has delegated responsibility for the oversight of specific risks to Board of Directors committees. The Audit Committee overseas risks associated with:

the Company’s financial statements and financial reporting;
internal controls over financial reporting; and
credit and liquidity.

The Compensation, Governance and Nominating Committee considers the risks associated with:

compensation policies and practices;
management resources, structure, succession planning and management development;
overall governance practices and the structure and leadership of the Board of Directors; and
related person transactions and the code of conduct for all employees, officers and directors.

The Board of Directors is kept informed of each committee’s risk oversight and any other activities deemed to engender risk via periodic reports from management and the committee chairs. Our Board of Directors recognizes the importance of risk oversight, and its role is consistent with the Board of Directors’ leadership structure, the CEO and the senior management of the Company. Our senior management is responsible for assessing and managing risk exposure and the Board of Directors, and committees of the Board of Directors provide the oversight consistent with those efforts.

Director Nominations

In considering whether to recommend any particular candidate for inclusion in the Board of Directors’ slate of recommended director nominees, the Compensation, Corporate Governance and Nominating Committee applies the criteria set forth in the Governance Guidelines. These criteria include the candidate’s integrity, business acumen, knowledge of our business and industry, experience, diligence, absence of conflicts of interest and the ability to act in the interest of all shareholders. The committee does not assign specific weights to particular criteria, and no particular criterion is a prerequisite for each prospective nominee. We believe that the backgrounds and qualifications of our directors, considered as a group, should provide a composite mix of experience, knowledge and abilities that will best allow the Board of Directors to fulfill its responsibilities.

Shareholders may recommend individuals to the Compensation, Corporate Governance and Nominating Committee for consideration as potential director candidates by submitting their names, together with appropriate biographical information and background materials. The recommendation should be sent to the Compensation, Corporate Governance and Nominating Committee, c/o Michael A. Schwartz, Secretary, Newtek Business Services Corp., 1981 Marcus Avenue, Suite 130, Lake Success, New York 11042. Assuming that appropriate biographical and background material has been provided on a timely basis, the Committee will evaluate shareholder-recommended candidates by following substantially the same process, and applying substantially the same criteria, as it follows for candidates recommended by our Board of Directors or others. If the Board of Directors determines to nominate a shareholder-recommended candidate and recommends his or her election, then his or her name will be included in the proposal for election for the next annual meeting.

208


 
 

TABLE OF CONTENTS

Shareholders also have the right under our Bylaws to nominate director candidates, without any action or recommendation on the part of the Compensation, Corporate Governance and Nominating Committee or the Board of Directors, by following the procedures set forth under “Shareholder Proposals” in our proxy statement. Candidates nominated by shareholders in accordance with the procedures set forth in our Bylaws may be included in our proxy statement and solicitation for the next annual meeting.

Code of Ethics

We have adopted and will maintain a Code of Ethics that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject to the Code of Ethics may invest in securities for their personal investment accounts, including securities that may be purchased or held by us, so long as such investments are made in accordance with the Code’s requirements. Our Code of Ethics generally will not permit investments by our employees in securities that may be purchased or held by us. We may be prohibited under the 1940 Act from conducting certain transactions with our affiliates without the prior approval of our directors who are not interested persons and, in some cases, the prior approval of the SEC. Our current Code of Ethics is posted on the Investor Relations section of our website at www.newtekone.com.

Certain Relationships and Related Party Transactions

We have written procedures in place for the review, approval and monitoring of transactions involving the Company and certain persons related to the Company. As a business development company (“BDC”), the Company is prohibited under the 1940 Act from participating in certain transactions with certain of its affiliates without meeting certain requirements, such as the prior approval of the independent directors and, in some cases, the SEC. The affiliates with which the Company may be prohibited from transacting include its officers, directors and employees and any person who owns 5% or more of our outstanding voting securities or controlling or under common control with the Company.

The Board of Directors reviews all potential related party transactions on an ongoing basis, and all such transactions must be approved by the Board of Directors. The Board of Directors reviews such transactions on a case-by-case basis. In addition, the Compensation, Corporate Governance and Nominating Committee or the Board of Directors reviews and approves all compensation-related policies involving our directors and executive officers. The Board of Directors may approve or ratify a related party transaction only if it determines that, under all of the circumstances, the transaction is in, or is not inconsistent with, our best interests. The Board of Directors may impose any conditions on the related person transaction that it deems appropriate.

Mr. Salute, a former partner with CohnReznick, receives a pension from CohnReznick and capital payouts from his partnership interests. CohnReznick performs tax work for the Company.

Adam Eddelson, husband to Jennifer Eddelson, the Company’s Chief Accounting Officer, is the controller of certain of the Company’s controlled portfolio companies, and is paid an annual salary in excess of $125,000.

Mr. Sloane’s brother Warren Sloane and nephew Kyle Sloane are employed by certain of the Company’s controlled portfolio companies and earn annual salaries less than $125,000.

Mr. Sloane is a director with AK Capital LLC, a securities brokerage company. In August 2016, the Company entered into an agreement with AK Capital pursuant to which AK Capital provides consulting and advisory services to the Company in connection with the sale and/or securitization of participations in SBA guaranteed and unguaranteed SBA 7(a) loans (the “AK Capital Agreement”). The AK Capital Agreement provides for the payment of fees of $10,000, to be paid monthly over the one year period of the agreement. During the year ended December 31, 2016, the Company incurred $3,000 in fees from AK Capital pursuant to the AK Capital Agreement.

209


 
 

TABLE OF CONTENTS

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires our directors and executive officers and persons who own more than 10% of a registered class of our equity securities, to file with the SEC and the Nasdaq initial reports of ownership and reports of changes in ownership of Common Shares of the Company. Officers, directors and greater than 10% shareholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file.

To the Company’s knowledge, based solely on Forms 3 and 4, and amendments to such forms, provided to the Company by its directors and executive officers and greater than 10% shareholders during 2016, all such required reports were timely filed.

Director Compensation

The Board of Directors has adopted a plan for compensation of non-employee directors which gives effect to the time and effort required of each of them in the performance of their duties. For 2016, the Board of Directors amended the plan for compensation of non-employee directors to provide for the payment of annual compensation in the amount of $125,000 for each non-employee director, with no additional fees for committee membership or chairmanship.

Directors do not receive any perquisites or other personal benefits from the Company.

Director Summary Compensation Table

The following table discloses the cash, equity awards and other compensation earned, paid or awarded, as the case may be, to each of our current directors during the fiscal years ended December 31, 2016 and 2015.

           
Name of Director   Year   Fees earned
or Paid in
Cash
($)
  Stock
Awards
($)(3)
  Option
Awards
($)(3)
  All Other
Compensation
($)
  Total
($)
Current independent directors:
                                                     
Salvatore F. Mulia     2016       125,000                                  125,000  
    2015       75,000                                  75,000  
Richard Salute     2016       125,000                                  125,000  
    2015       75,000                                  75,000  
Gregory Zink(1)     2016                                         
Former independent director:
                                                     
Sam Kirschner(1)     2016       125,000                                  125,000  
    2015       60,000                                  60,000  
Interested directors:                                                      
Barry Sloane(2)     2016                                
    2015                                
Peter Downs(2)     2016                                
    2015                                

(1) Mr. Kirschner resigned from the Board of Directors on March 28, 2017. On March 28, 2017, the Board of Directors appointed Mr. Zink to replace Mr. Kirschner and serve the remainder of Mr. Kirschner’s term.
(2) As employee directors, Messrs. Sloane and Downs do not receive any compensation for their service as directors. The compensation Messrs. Sloane and Downs receive from the Company as employees is disclosed in the Summary Compensation Table and elsewhere under “EXECUTIVE COMPENSATION.”

210


 
 

TABLE OF CONTENTS

EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

2016 Named Executive Officers

This compensation discussion and analysis (“CD&A”) provides 2016 compensation information for the following Named Executive Officers (“NEOs”). References to “2016 NEOs” in this CD&A are references to Messrs. Sloane, Downs, Schwartz, Raven, and Joshi, and Ms. Eddelson.

   
Name   Age   Position
2016 NEOs:
         
Barry Sloane   57   Chairman, Chief Executive Officer and President
Jennifer Eddelson   44   Executive Vice President, Chief Accounting Officer
Peter Downs   52   Chief Lending Officer; President Newtek Small Business Finance, LLC
Michael Schwartz   57   Chief Legal Officer, Chief Compliance Officer and Secretary
John Raven   52   Chief Technology Officer, Chief Information Security Officer
Nilesh Joshi(1)   42   Chief Information Officer
Former NEO:
         
Dean Choksi(2)   37   Former Treasurer

(1) Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. See “Recent Developments — Elimination and Consolidation of the CIO Position.”
(2) Effective as of July 7, 2016, the Company eliminated the positon of Treasurer and consolidated the Treasurer function within the Company’s Finance Department. As a result, Mr. Choksi left the Company effective July 7, 2016.

Compensation Discussion and Analysis

Introduction

The following CD&A includes our compensation philosophy, a description of our compensation program and the program’s objectives, the elements of compensation used to pay our executives and the compensation-related decisions made with respect to our NEOs as set forth below.

Compensation Philosophy and Objectives

Our compensation programs are designed to attract and retain key employees and to motivate them to achieve, and reward them for achieving, superior performance. Different programs are geared to shorter- and longer-term performance, with the goal of increasing shareholder value over the long-term. Because we believe the performance of every employee is important to our success, we are mindful of the effect of executive compensation and incentive programs on all of our employees.

We believe that the compensation of our executives should reflect their success as a management team, rather than just as individuals, in attaining key operating objectives, such as growth of sales, growth of operating earnings and earnings per share and growth or maintenance of market share and long-term competitive advantage, and ultimately, in attaining an increased market price for our Common Shares. We believe that the performance of our executives in managing our Company, considered in light of general economic and specific company, industry and competitive conditions, should be the basis for determining their overall compensation. We also believe that their compensation should not be based on the short-term performance of our stock, whether favorable or unfavorable, but rather that the price of our stock will, in the long-term, reflect our operating performance and, ultimately, the management of the Company by our executives. We seek to have the long-term performance of our stock reflected in executive compensation through our equity incentive programs, including stock options and restricted stock awards.

211


 
 

TABLE OF CONTENTS

Role of Executive Officers in Compensation Decisions

The Committee supervises the design and implementation of compensation policies for all executive officers (which include the NEOs) and overall incentive equity awards to all employees of the Company. Decisions regarding the non-equity compensation of executive officers, other than named executive officers, are made by the Chief Executive Officer within the compensation philosophy set by the Committee. Decisions regarding the non-equity compensation of NEOs are made by the Chief Executive Officer and the Committee for consistency with the Company’s compensation policies.

The Chief Executive Officer semi-annually reviews the performance of each member of the senior executive team, including NEOs (other than himself whose performance is reviewed by the Committee). The conclusions reached and recommendations based on these reviews, including with respect to salary adjustments and annual award amounts, are then presented to the Committee by the Chief Executive Officer. The Committee will review and approve the recommendations for consistency with the Company’s compensation policies

Setting Executive Compensation

During the course of each fiscal year, it has been the practice of the Chief Executive Officer to review the history of all the elements of each executive officer’s total compensation and the Chief Executive Officer may also compare the compensation of the executive officers with that of the executive officers in an appropriate market comparison group of companies with a capitalization similar to that of the Company. We seek to set compensation levels that are perceived as fair, internally and externally, and competitive with overall compensation levels at other companies in our industry, including larger companies from which we may want to recruit employees. However, the Company does not establish individual objectives in the range of comparative data for each individual or for each element of compensation. Typically, the Chief Executive Officer sets compensation with respect to the executive officers who report to him and presents it to the Committee for conformity with the Company’s overall compensation policies. The NEOs are not present at the time of these deliberations. The Committee then performs a similar review of the Chief Executive Officer’s total compensation and makes compensation decisions with respect to such officer, who does not participate in that determination.

We choose to pay each element of compensation in order to attract and retain the necessary executive talent, reward annual performance and provide incentive for balanced focus. The amount of each element of compensation is determined by or under the direction of our Committee, which uses the following factors to determine the amount of salary and other benefits to pay each NEO:

achievement of income to sustain and grow the Company’s dividend payments;
attainment of risk-adjusted returns on the Company’s investment portfolio;
performance against competitors for the year;
difficulty in achieving desired results in the coming year;
value of their unique skills and capabilities to support long-term performance;
contribution and growth as a member of the executive management team;
professional development and growth of individual executives, the management team and other employees; and
managerial assistance provided to our controlled portfolio companies, including contributions to growth of sales, growth of operating earnings and earnings per share.

We do not establish individual goals but focus on the overall profitable growth of our business.

Based on the foregoing objectives, we have structured the Company’s annual and long-term incentive-based cash and non-cash executive compensation to motivate executives to achieve the business goals set by the Company.

212


 
 

TABLE OF CONTENTS

There is no pre-established policy or target for the allocation between either cash or non-cash compensation. Historically we have granted a majority of total compensation to executive officers in the form of cash compensation.

For the year ended December 31, 2016, the principal components of compensation for named executive officers were:

base salary;
performance-based incentive compensation based on the Company’s and the executive’s performance; and
retirement and other benefits made available to all employees.

Base Salary

The Company provides NEOs and other employees with base salary to compensate them for services rendered during the fiscal year. Executive base salaries continue to reflect our operating philosophy, our performance driven corporate culture and business direction, with each salary determined by the skills, experience and performance level of the individual executive, and the needs and resources of the Company. Base salaries are generally targeted to market levels and base salary ranges for NEOs are determined for each executive based on his or her position and responsibility by using market data from peer companies and published salary surveys, and the Company generally attempts to fix each NEO’s salary within the range. We believe that the Company’s most direct competitors for executive talent are not necessarily restricted to those companies that are included in the peer company index used to compare shareholder returns, but encompass a broader group of companies engaged in the recruitment and retention of executive talent in competition with the Company.

During the review of base salaries for senior level executives, including the NEOs, we primarily consider:

an internal review of each executive’s compensation both individually and relative to other executive officers;
individual performance of the executive; and
a review of the Company’s dividend growth and adjusted net investment income relative to the Company’s annual plan as established by the Board of Directors.

Salary levels typically are considered annually as part of the Company’s performance review process as well as upon a promotion or other change in job responsibility. Merit based increases to salaries are based on the Chief Executive Officer’s assessment of the individual’s performance. Merit based increases to the salaries of NEOs other than the Chief Executive Officer are recommended by the Chief Executive Officer and confirmed by the Committee and those for the Chief Executive officer are determined by the Committee.

Annual Bonus

Annual bonuses may be awarded to executive officers along with the Company’s non-executive employees under the Company’s cash bonus plan. The Company creates a bonus pool based on an annually determined percentage of the salaries of all employees which it accrues as an expense. Payments under the plan are based on the Company’s overall performance as determined by the Chief Executive Officer and the Committee. The Committee determines any bonus for the Chief Executive Officer based on, among other things, a review of the Company’s revenue growth, net income and cash flow relative to the Company’s annual plans as established by the Board of Directors. The Chief Executive Officer in consultation with the Committee with respect to the NEOs, or in consultation with the NEOs and other senior level officers with respect to lower level employees, determines annual bonuses for other employees based on such employee’s performance. Factors considered include the achievement of business plans, defined goals and performance relative to other companies of a similar size and business strategy. The mix and weighting of the factors vary, depending on the business segment and the executive’s responsibilities. The level of achievement and overall contribution by the executive determines the level of bonus.

213


 
 

TABLE OF CONTENTS

Equity-Based Compensation

The Company must compete for leadership with commercial banks, investment banks, and other publicly traded companies not regulated as investment companies, which are generally able to award many different types of stock-based compensation to their directors, (including their non-employee directors,) officers, and employees. Moreover, the Company also must compete for leadership with private equity funds, which generally have the discretion to offer a portion of their various carried interests to induce professional talent to associate with their funds without being required to obtain SEC approval each time. On September 12, 2014, the Board of Directors voted to establish the Newtek Business Services Corp. 2014 Stock Incentive Plan (the “2014 Plan”). The 2014 Plan was approved by stockholders of the Company on October 22, 2014. The 2014 Plan provided for the grant of options to purchase shares of Company common stock, the terms of which will be determined by the Compensation, Corporate Governance and Nominating Committee and set forth in an award agreement between the Company and the executive or employee. The Company has not issued options under the 2014 Plan.

On April 27, 2015, the Compensation, Corporate Governance and Nominating Committee and the Board of Directors approved the Amended and Restated 2014 Stock Incentive Plan (the 2015 Stock Plan), subject to exemptive relief from the SEC and shareholder approval, in order to have increased flexibility to use restricted stock, in addition to stock options, to assist the Company in achieving its objectives with respect to long-term equity incentive compensation. On May 10, 2016, we received an exemptive order from the SEC permitting us to award shares of restricted stock to our employees, officers, and non-employee directors, and on July 27, 2016, our shareholders approved the 2015 Stock Plan.

The 2015 Stock Plan permits us to issue awards of stock options and restricted stock in an aggregate amount of up to 20% of our issued and outstanding shares of common stock (the “Plan Maximum Shares”) as of the effective date of the plan. Under the 2015 Stock Plan, all of the Plan Maximum Shares are available for grants of stock options, and half of the Plan Maximum Shares (up to 10% of our issued and outstanding common stock as of the effective date of the 2015 Stock Plan) is available for grants of restricted stock. The Compensation, Corporate Governance and Nominating Committee believes that restricted stock is the best method of encouraging stock ownership in the Company by eligible participants by giving them a proprietary interest in the Company’s performance, which more closely aligns compensation with the Company’s performance and provides a means to attract and retain persons of outstanding ability in key positions with the Company. If in the future we successfully grow our assets under management and our net asset value, we may choose to increase the number of employees of the Company. The Compensation, Corporate Governance and Nominating Committee may or may not choose to consider the use of stock options for incentive compensation of these employees.

The Company’s Board of Directors and its Compensation, Corporate Governance and Nominating Committee, which consists entirely of directors who are not employees of the Company, believe that in light of the Company’s plan for growth, stock-based incentive compensation, particularly the award of restricted stock, advances the interests of the Company by providing substantial motivation for superior performance and more fully aligning the interests of officers and directors with the interests of our shareholders.

Benefits and Perquisites

Our NEOs are generally not entitled to benefits that are not available to all of our employees. In this regard, it should be noted that we do not provide pension arrangements, post-retirement health coverage or similar benefits for our executives or employees. The Committee periodically reviews the levels of benefits provided to executive officers. The NEOs participate in the Company’s 401(k) savings plan and other benefit plans on the same basis as other similarly situated employees. The Company has adopted a match for the Company’s 401(k) savings plan which consists of a discretionary match of 50% of the first 2% of employee contributions up to a maximum of 1% of the employee’s compensation. The Board has yet to determine the 2016 match.

The perquisites we provided in fiscal 2016 consist of premiums on a life insurance policy for Mr. Sloane, the Company’s Chief Executive Officer, in the amount of $4,320.

214


 
 

TABLE OF CONTENTS

Compensation of the Chief Executive Officer

The Committee’s decisions regarding compensation of Mr. Sloane are guided by the same policies and considerations that govern compensation of the Company’s other NEOs. While recognizing the Chief Executive Officer’s leadership in building a highly talented management team and in driving the Company forward, Mr. Sloane’s base salary was increased to $500,000 in March 2015 and increased to $600,000 in March 2016. Mr. Sloane earned a $500,000 bonus for 2016 that was paid in 2017 and a $500,000 bonus earned in 2015 that was paid in 2016.

Mr. Sloane received an award of 26,400 Restricted Common Shares in August 2016 with a twelve month vesting period and did not receive a grant of Common Shares or options in 2015. The Committee has determined that this salary and bonus package is competitive with the labor market median for someone with Mr. Sloane’s skills and talents and is reflective of the Company’s current cash and financial position and the status of the Company’s Common Shares.

Compensation of the Other NEOs

The Committee approved the 2016 compensation for Jennifer Eddelson, Peter Downs, Michael Schwartz, Dean Choksi, Nilesh Joshi and John Raven, as recommended to it by the Chief Executive Officer.

2016 NEOs

Ms. Eddelson’s base salary was $275,000 in 2016 and $260,000 in 2015. Ms. Eddelson received a $125,000 cash bonus in 2016 (paid in 2017) and $100,000 cash bonus in 2015 (paid in 2016). Ms. Eddelson received an award of 6,600 Restricted Common Shares in August 2016 with a twelve month vesting period and did not receive a grant of Common Shares or options in 2015.

Mr. Down’s base salary was $375,000 in 2016 and $325,000 in 2015, and he received a $125,000 cash bonus in 2016 (paid in 2017) and $100,000 cash bonus in 2015 (paid in 2016). Mr. Downs received an award of 6,600 Restricted Common Shares in August 2016 with a twelve month vesting period and did not receive a grant of Common Shares or options in 2015.

Mr. Schwartz’s base salary was $250,000 in 2016 and $200,000 in 2015. Mr. Schwartz received a $100,000 cash bonus in 2016 (paid in 2017) and a $70,000 cash bonus in 2015 (paid in 2016). Mr. Schwartz received an award of 6,600 Restricted Common Shares in August 2016 with a twelve month vesting period and did not receive a grant of Common Shares or options in 2015.

Mr. Raven’s base salary was $215,000 in 2016, and he did not receive a cash bonus in 2016. Mr. Raven received an award of 3,300 Restricted Common Shares in August 2016 with a twelve month vesting period.

Mr. Joshi’s base salary was $190,000 in 2016, and he received a $20,000 cash bonus in 2016 (paid in 2017). Mr. Joshi received an award of 1,650 Restricted Common Shares in August 2016 with a twelve month vesting period.

Former NEOs

Mr. Choksi’s base salary was $200,000 in 2015. Mr. Choksi received a $35,000 cash bonus in 2015 (paid in 2016).

Elements of Executive Compensation and 2015 Compensation Determinations

Base Salary.  We believe that base salaries are a fundamental element of our compensation program. The Committee establishes base salaries for each NEO to reflect (i) the scope of the NEO’s industry experience, knowledge and qualifications, (ii) the NEO’s position and responsibilities and contributions to our business growth and (iii) salary levels and pay practices of those companies with whom we compete for executive talent.

The Committee considers base salary levels at least annually as part of its review of the performance of NEOs and from time to time upon a promotion or other change in job responsibilities. During its review of base salaries for our executives, the Committee primarily considers: individual performance of the executive, including leadership and execution of strategic initiatives and the accomplishment of business results for the company; market data; the NEO’s total compensation, both individually and relative to our other NEOs; and for NEOs other than the CEO, the base salary recommendations of our CEO.

215


 
 

TABLE OF CONTENTS

The following table sets forth the 2015 and 2016 base salaries for our current NEOs.

   
NEO   2016 Base
Salary
  2015 Base
Salary
Barry Sloane   $ 600,000     $ 500,000  
Peter Downs   $ 375,000     $ 325,000  
Jennifer Eddelson   $ 275,000     $ 260,000  
Michael Schwartz   $ 250,000     $ 200,000  
John Raven(1)   $ 215,000        
Nilesh Joshi(1)(2)   $ 190,000        

(1) Mr. Raven and Mr. Joshi were appointed to their positions during 2016.
(2) Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. See “Recent Developments — Elimination and Consolidation of the CIO Position.”

Annual Bonus Awards.  The Committee designs our annual cash bonuses to motivate our NEOs to achieve financial and non-financial objectives consistent with our operating plan. The Committee retains discretion in the sizing and awarding of cash bonuses for each NEO to ensure that individual bonus determinations appropriately balance the interests of the Company’s shareholders, while rewarding an NEO’s contributions to performance. In evaluating the performance of our NEOs to arrive at their 2015 cash bonus awards, the Committee considered the factors to determine the amount of salary and other benefits, as set forth above. The Committee also considered the following factors and aspects of the Company’s 2016 operating performance in the determination of specific NEO bonus awards:

Declaration of $1.53 per share in cash dividends;
Completed the investment in ADR Partners, LLC;
Completion of a debt offering; and
managerial assistance provided to our controlled portfolio companies, including contributions to growth of sales, growth of operating earnings and earnings per share. The Committee further reviewed each NEO’s specific performance achievements and contributions to the Company’s 2016 financial performance.

When allocating bonus awards, the Committee also evaluated, the total compensation paid to the NEOs and other employees. Based on the foregoing considerations and analysis, and after due deliberation, the Committee awarded the 2016 NEOs the following annual cash bonuses and award of shares of restricted stock pursuant to the 2015 Stock Plan with respect to 2016.

   
2016 NEOs   2016 Cash
Bonus Award
  As Percentage
of 2016 Base
Salary
Barry Sloane   $ 500,000       83 % 
Peter Downs   $ 125,000       33 % 
Jennifer Eddelson   $ 125,000       45 % 
Michael Schwartz   $ 100,000       40 % 
John Raven            
Nilesh Joshi(1)   $ 20,000       10 % 

(1) Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. See “Recent Developments — Elimination and Consolidation of the CIO Position.”

216


 
 

TABLE OF CONTENTS

       
Name   Number of
Shares or Units
that have not
Vested
(#)
  Market Value of
Shares or Units
of Stock that
have not Vested
($)
  Equity Incentive
Plan Awards:
Number of
Unearned Shares,
Units or Other
Rights that have
not Vested
(#)
  Equity Incentive Plan
Awards: Market or
Payout Value of Number
of Unearned Shares,
Units or Other Rights
that have not Vested
($)(1)
Barry Sloane(3)     n/a       n/a       26,400     $ 452,760  
Jennifer Eddelson(3)     n/a       n/a       6,600     $ 113,190  
Peter Downs(3)     n/a       n/a       6,600     $ 113,190  
Michael A. Schwartz(3)     n/a       n/a       6,600     $ 113,190  
John Raven(3)     n/a       n/a       3,300     $ 56,595  
Nilesh Joshi(2)     n/a       n/a       1,650     $ 28,298  
All Others(4)     n/a       n/a       69,783     $ 1,196,778  

(1) Based on the closing price for our Common Shares of $17.15 on August 21, 2017
(2) Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. See “Recent Developments — Elimination and Consolidation of the CIO Position.” Mr. Joshi forfeited his unvested stock when he left the Company.
(3) On August 15, 2017, all shares listed next to this party's name vested.
(4) As of August 15, 2017, of the 69,783 shares listed next to “All Others,” 45,600 have vested, 18,905 have not vested and 5,278 were forfeited.

Conclusion

The Committee believes that attracting and retaining talented and motivated management and employees is essential to creating long-term shareholder value. The Committee seeks to attract and retain management and employees by offering a competitive, performance-based compensation program which the Committee believes aligns the interests of the executive officers and other key employees with those of shareholders. We believe that the Company’s 2016 compensation program met those objectives.

COMPENSATION RISK ASSESSMENT

Our Compensation, Corporate Governance and Nominating Committee aims to establish Company-wide compensation policies and practices that reward contributions to long-term shareholder value and do not promote unnecessary or excessive risk-taking. In furtherance of this objective, the Committee conducted an assessment of our compensation arrangements, including those for our named executive officers. The assessment process included, among other things, a review of our (1) compensation philosophy, (2) compensation mix and (3) cash and equity-based incentive plans.

In its review, among other factors, the Committee considered the following:

Our revenue model and our cash incentive plan encourage our employees to focus on creating a stable, predictable stream of revenue over multiple years, rather than focusing on current year revenue at the expense of succeeding years.
The distribution of compensation among our core compensation elements has effectively balanced short-term performance and long-term performance.
Our cash and equity-based incentive awards in conjunction with management efforts focus on both near-term and long-term goals.
Our cash and equity-based incentive awards contain a range of performance levels and payouts, to discourage executives from taking risky actions to meet a single target with an all or nothing result of compensation or no compensation.

Our executives are encouraged to hold a meaningful number of Common Shares pursuant to our stock ownership policy. Based upon this assessment, our Compensation, Corporate Governance and Nominating

217


 
 

TABLE OF CONTENTS

Committee believes that our Company-wide compensation policies and practices do not create risks that are reasonably likely to have a material adverse effect on us.

2016 Advisory Vote on Executive Compensation; Continuing Stockholder Engagement

At our 2016 annual meeting of stockholders, our advisory vote on say-on-pay received strong support from our stockholders (approximately 84% of votes cast).

The Committee views as important the continuing dialogue with our shareholders on compensation and other governance matters. The results of the Company’s 2016 advisory vote on say-on-pay represent positive support for the named executive officers’ compensation, but we continue to review our compensation program such that it recognizes the business environment in which the Company operates, control costs, is transparent, and enables employees to make informed decisions. We anticipate continuing our shareholder engagement efforts following the 2016 annual meeting and in advance of our future annual meetings.

Compensation, Corporate Governance and Nominating Committee Interlocks and Insider Participation

All members of the Compensation, Corporate Governance and Nominating Committee are independent directors, and none of them are present or past employees or paid officers of ours or any of our subsidiaries. No member of the Compensation, Corporate Governance and Nominating Committee: (i) has had any relationship with us requiring disclosure under Item 404 of Regulation S-K under the Exchange Act; or (ii) is an executive officer of another entity, at which one of our executive officers serves on our Board of Directors.

2016 Compensation, Corporate Governance and Nominating Committee Report

The Compensation, Corporate Governance and Nominating Committee of the Company has reviewed and discussed the foregoing Compensation Discussion and Analysis for fiscal 2016 required by Item 402(b) of Regulation S-K with management and, based on such review and discussions, the Compensation, Corporate Governance and Nominating Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement.

THE COMPENSATION, CORPORATE GOVERNANCE AND NOMINATING COMMITTEE

Salvatore Mulia, Chairman
Richard Salute
Gregory Zink

218


 
 

TABLE OF CONTENTS

SUMMARY COMPENSATION TABLE

The following tables set forth the aggregate compensation earned by the Company’s Chief Executive Officer, Chief Accounting Officer, and next three most highly compensated executive officers (which we refer to as named executive officers) during 2016 and the two previous years.

                 
Name and Principal Position   Year   Salary
($)
  Bonus
($)
  Stock
Awards(3)
  Option
Awards(3)
  Non-Equity
incentive
Plan
Compensation
($)
  Change
in Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)
  All Other
Compensation
($)
  Totals
($)
2016 NEOs
                                                                                
Barry Sloane     2016       583,333       500,000 (1)      357,456                                           1,440,789  
    2015       483,333       500,000 (2)                                    983,333  
    2014       400,000       100,000 (4)                                    500,000  
Jennifer Eddelson     2016       272,500       125,000 (1)      89,634                                           487,134  
    2015       256,667       100,000 (2)                                    356,667  
    2014       240,000       90,000 (4)                                       330,000  
Peter Downs     2016       366,667       125,000 (1)      89,634                                           581,301  
    2015       319,167       100,000 (2)                                    419,167  
    2014       290,000       85,000 (4)                                       375,000  
Michael Schwartz(5)     2016       241,667       100,000 (1)      89,634                               431,301  
    2015       191,667       70,000 (2)                                    261,667  
John Raven     2016       207,500             44,682                               252,182  
Nilesh Joshi(6)     2016       134,583       20,000 (1)      22,341                               176,924  
Former NEOs
                                                                                
Dean Choksi(7)     2016       104,167                                           104,167  
    2015       141,667       35,000                                     176,667  

(1) Cash bonus awarded for 2016 performance and paid in 2017.
(2) Cash bonus awarded for 2015 performance and paid in 2016.
(3) These awards of restricted Common Shares were made in August 2016 and have twelve (12) month vesting periods. The value reported for Stock and Option Awards is the aggregate grant date fair value of options or stock awards granted to the NEOs in the years shown, determined in accordance with FASB ASC Topic 718, disregarding adjustments for forfeiture assumptions. The assumptions for making the valuation determinations are set forth in the footnote titled “Stock-Based Compensation” to our financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016.
(4) Cash bonus awarded for 2014 performance and paid in 2015.
(5) Mr. Schwartz was appointed Chief Legal Officer as of January 2015. The Company’s Board of Directors appointed Mr. Schwartz the Company’s Chief Compliance Officer, effective October 1, 2015.
(6) Mr. Joshi served as the Company’s CIO from April 2016 to July 3, 2017. Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. See “Recent Developments — Elimination and Consolidation of the CIO Position.”
(7) Mr. Choksi was hired as Treasurer and Senior Vice President of Finance in April 2015 and left the Company in July 2016.

Equity Compensation Plans & Grants of Plan-Based Awards

On April 27, 2015, the Compensation, Corporate Governance and Nominating Committee and the Board of Directors approved the 2015 Stock Plan, subject to exemptive relief from the SEC and shareholder approval, in order to have increased flexibility to use restricted stock, in addition to stock options, to assist the Company in achieving its objectives with respect to long-term equity incentive compensation. On May 10,

219


 
 

TABLE OF CONTENTS

2016, we received an exemptive order from the SEC permitting us to award shares of restricted stock to our employees, officers, and non-employee directors, and on July 27, 2016, our shareholders approved the 2015 Stock Plan.

Under the 2015 Stock Plan, a maximum of 20% of our total shares of common stock issued and outstanding, calculated on a fully diluted basis, will be available for awards under the Amended Stock Plan as of the Annual Meeting date. Up to 10% of our total issued and outstanding shares will be available for grants of shares of restricted Common Shares. We expect to have 17,292,330 shares outstanding on the date of the 2017 annual meeting of shareholders. Therefore, there would be 3,458,466 shares available for grant pursuant to the 2015 Stock Plan. None of those shares are currently subject to stock options Under the 2015 Stock Plan, no more than 50% of the shares of stock reserved for the grant of the awards under the Amended Stock Plan (up to an aggregate of 3,000,000 shares) may be restricted stock awards at any time during the term of the 2015 Stock Plan. To date, the Compensation, Corporate Governance and Nominating Committee has awarded 135,818 restricted stock awards to 32 employees. Therefore, approximately 1.364 million shares of common stock would be available for additional grants of restricted stock as of the Annual Meeting date.

No more than 25% of the shares of our common stock may be made subject to awards under the plan to any individual. In the event that the Compensation, Corporate Governance and Nominating Committee determines that any corporate event, such as a stock split, dividend or other distribution (including deemed dividends), reorganization, merger, consolidation, repurchase or share exchange, affects our common stock such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of plan participants, then the Corporate Governance and Nominating Committee will make those adjustments as it deems necessary or appropriate to any or all of (i) the number and kind of shares or other property that may thereafter be issued in connection with future awards, (ii) the number and kind of shares or other property that may be issued under outstanding awards, (iii) the exercise price or purchase price of any outstanding award and (iv) the performance goals applicable to outstanding awards.

The Company has no outstanding options under the 2015 Stock Plan.

Outstanding Equity Awards at 2016 Year End

There were 126,965 outstanding equity awards as of December 31, 2016, including dividends paid on the outstanding equity awards in the form of additional restricted Common Shares, of which, 54,017 outstanding equity awards were held by our NEOs

The following table sets forth information regarding outstanding awards of restricted stock held by our Named Executive Officers as of December 31, 2016:

       
  Stock Awards
Name   Number of
shares of stock
that have
not vested
  Market value
of shares
of stock
that have not
vested(1)
  Equity incentive
plan awards:
number of
unearned shares
or other rights
that have
not vested
  Equity incentive
plan awards:
market or
payout value of
unearned shares
or other rights
that have not
vested
Barry Sloane     27,880     $ 478,142              
Jennifer Eddelson     6,970     $ 119,536              
Peter Downs     6,970     $ 119,536              
Michael Schwartz     6,970     $ 119,536              
John Raven     3,485     $ 59,768              
Nilesh Joshi(2)     1,742     $ 29,875              

(1) Based on the closing price for our Common Shares of $17.15 on August 21, 2017.
(2) Effective as of July 3, 2017, the Company eliminated the position of CIO and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, the CIO, left the Company effective July 3, 2017. See “Recent Developments — Elimination and Consolidation of the CIO Position.” Mr. Joshi forfeited his unvested stock when he left the Company.

220


 
 

TABLE OF CONTENTS

Options Exercised and Stock Vested

No options were exercised or shares of restricted stock vested in 2016.

Employment Agreements

The Company entered into separate employment agreements with the following named executive officers during 2016 (each, an “Employment Agreement”):

Barry Sloane, as Chairman, Chief Executive Officer and President;
Jennifer Eddelson, as Executive Vice President and Chief Accounting Officer; and
Michael Schwartz, as Chief Legal Officer, Chief Compliance Officer and Secretary.

Mr. Sloane’s, Ms. Eddelson’s and Mr. Schwartz’ employment agreements were renewed as of March 15, 2017 for terms through March 31, 2018, at annual base salaries of $600,000, $300,000 and $300,000, respectively. Aside from base salaries, the other terms and provisions of the employment agreements remained substantially same.

Generally, under the Employment Agreements, Messrs. Sloane, Schwartz and Ms. Eddelson were entitled to a set base compensation, cash bonuses pursuant to the Company’s Annual Cash Bonus Plan or by the action of the board of directors, and incentive compensation at the discretion of the Compensation, Corporate Governance and Nominating Committee. In addition, Messrs. Schwartz and Sloane and Ms. Eddelson are entitled to other benefits, such as participation in retirement and medical and other plans, executive benefits, and vacation and sick leave. The Employment Agreements also provide for severance payments in the case of termination without just cause, as defined therein, or of resignation with good reason, as defined therein. Under the Employment Agreements, during the term of their employment, Messrs. Schwartz and Sloane and Ms. Eddelson agree to devote substantially all of their business time to the Company and to not engage in any business or activity contrary to the business or affairs of the Company. The Company agrees to indemnify Messrs. Schwartz and Sloane and Ms. Eddelson for any and all loss, expenses, or liability that he or she may incur as a result of his or her services for the Company to the extent permitted by the Company’s Bylaws.

Mr. Sloane’s employment agreement provided for:

a twelve month term through March 31, 2017 at an annual base salary of $500,000;
at least one annual salary review by the Board of Directors;
participation in any discretionary bonus plan established for senior executives;
retirement and medical plans, customary fringe benefits, vacation and sick leave; and
$2 million of split-dollar life insurance coverage.

Ms. Eddelson’s employment agreement provided for:

a twelve month term through March 31, 2017 at an annual base salary of $275,000;
at least one annual salary review by the Board of Directors;
participation in any discretionary bonus plan established for senior executives; and
retirement and medical plans, customary fringe benefits, vacation and sick leave.

Mr. Schwartz’s employment agreement provided for:

a twelve month term through March 31, 2017 at an annual base salary of $250,000;
at least one annual salary review by the Board of Directors;
participation in any discretionary bonus plan established for senior executives; and
retirement and medical plans, customary fringe benefits, vacation and sick leave.

221


 
 

TABLE OF CONTENTS

Payments upon Change of Control

Mr. Sloane’s employment agreement provided for a payment in the event of non-renewal of his employment in an amount equal to one and one-half (1.5) times, or in the case of a change of control or termination other than for just cause of the agreement an amount equal to two (2) times, the sum of (i) the executive’s annual base salary in effect at the time of termination, plus (ii) the amount of any incentive compensation paid with respect to the immediately preceding fiscal year. In addition, in the case of termination other than for just cause, all outstanding and unvested equity awards are to be accelerated in full.

Ms. Eddelson’s and Mr. Schwartz’ employment agreements provided for a payment (1) in the case of termination other than for just cause equal to one times the sum of the executive’s current annual base salary plus any cash bonuses or incentive compensation paid in the prior year, and (2) in connection with a change in control, equal to two (2) times the executive’s “base amount” as defined in §280G(b)(3) of Internal Revenue Code of 1986. In addition, in the case of termination other than for cause, all outstanding and unvested equity awards are to be accelerated in full.

Each employment agreement contained a non-competition provision that requires the employee to devote substantially his full business time and efforts to the performance of the employee’s duties under the agreement.

The employees are not prohibited, however, from serving on the boards of directors of, and holding offices or positions in, companies or organizations which, in the opinion of the Board of Directors, will not present conflicts of interest with the Company; or investing in any business dissimilar from the Company’s or, solely as a passive or minority investor, in any business.

Under each of the employment agreements, the Company may terminate an employee’s employment for “just cause” as defined in the agreement, and upon the termination, no severance benefits are available. If the employee voluntarily terminates his or her employment for “good reason” as defined in the agreement, the employee is entitled to the same payment as in the case of termination other than for cause. If the employee’s employment terminates during the term of the agreement due to death, disability, or retirement after age 62, the employee shall receive only his or her compensation, vested rights, and executive benefits up to the date of executive’s last day of employment. The employee is able to terminate voluntarily his or her agreement by providing 60 days written notice to the Board of Directors, in which case the employee is entitled to receive only his or her compensation, vested rights and benefits up to the date of termination.

Post Termination Payments

The table below reflects the amount of compensation that would have been payable to the executive officers under these arrangements if the hypothetical termination of employment events described above had occurred on December 31, 2016, given their compensation and service levels as of such date. All payments are payable by the Company in a lump sum unless otherwise noted.

These benefits are in addition to benefits available regardless of the occurrence of such an event, such as currently exercisable stock options, and benefits generally available to salaried employees, such as distributions under the Company’s 401(k) plan, disability benefits, and accrued vacation pay. In addition, in connection with any termination of Mr. Sloane’s employment, the Company may determine to enter into an agreement or to establish an arrangement providing additional benefits or amounts, or altering the terms of benefits described below, as the Compensation, Corporate Governance and Nominating Committee deems appropriate.

222


 
 

TABLE OF CONTENTS

The actual amounts that would be paid upon Mr. Sloane’s termination of employment can be determined only at the time of his separation from the Company.

     
  Post Termination Payments
Name   Change in
Control
  Non-Renewal   Termination
without cause
2016 NEOs
                          
Barry Sloane   $ 1,806,440     $ 2,161,184     $ 2,881,579  
Jennifer Eddelson   $ 663,187           $ 487,134  
Michael Schwartz   $ 520,404           $ 431,301  

Nonqualified Deferred Compensation

The Company did not have any nonqualified deferred compensation in the year ended December 31, 2016.

Pension Benefits

The Company had no obligation under pension benefit plans to the named executive officers as of December 31, 2016.

Tax and Accounting Implications

Deductibility of Executive Compensation

As part of its role, the Committee reviews and considers the deductibility of executive compensation under Section 162(m) of the Code, which provides that the Company may not deduct compensation of more than $1,000,000 that is paid to certain individuals. The Company believes that compensation paid by the Company is generally fully deductible for federal income tax purposes. However, in certain situations, the Committee may, in the future, approve compensation that will not meet these requirements in order to ensure competitive levels of total compensation for its executive officers.

Accounting for Stock-Based Compensation

Beginning on January 1, 2006, the Company began accounting for stock-based payments under its three incentive stock plans in accordance with the requirements of ASC Topic — 718.

223


 
 

TABLE OF CONTENTS

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

We have written procedures in place for the review, approval and monitoring of transactions involving the Company and certain persons related to the Company. As a business development company (“BDC”), the Company is prohibited under the 1940 Act from participating in certain transactions with certain of its affiliates without meeting certain requirements, such as the prior approval of the independent directors and, in some cases, the SEC. The affiliates with which the Company may be prohibited from transacting include its officers, directors and employees and any person who owns 5% or more of our outstanding voting securities or controlling or under common control with the Company.

The Board of Directors reviews all potential related party transactions on an ongoing basis, and all such transactions must be approved by the Board of Directors. The Board of Directors reviews such transactions on a case-by-case basis. In addition, the Compensation, Corporate Governance and Nominating Committee or the Board of Directors reviews and approves all compensation-related policies involving our directors and executive officers. The Board of Directors may approve or ratify a related party transaction only if it determines that, under all of the circumstances, the transaction is in, or is not inconsistent with, our best interests. The Board of Directors may impose any conditions on the related person transaction that it deems appropriate.

Mr. Salute, a former partner with CohnReznick LLP (“CohnReznick”), receives a pension from CohnReznick and capital payouts from his partnership interests. CohnReznick performs tax work for the Company.

Adam Eddelson, husband to Jennifer Eddelson, the Company’s Chief Accounting Officer, is the controller of certain of the Company’s controlled portfolio companies, and is paid an annual salary in excess of $125,000.

Mr. Sloane’s brother Warren Sloane and nephew Kyle Sloane are employed by certain of the Company’s controlled portfolio companies and earn annual salaries less than $125,000.

Mr. Sloane is a director with AK Capital LLC, a securities brokerage company. In August 2016, the Company entered into an agreement with AK Capital pursuant to which AK Capital provides consulting and advisory services to the Company in connection with the sale and/or securitization of participations in SBA guaranteed and unguaranteed SBA 7(a) loans (the “AK Capital Agreement”). The AK Capital Agreement provides for the payment of fees of $10,000, to be paid monthly over the one year period of the agreement. During the year ended December 31, 2016, the Company incurred $3,000 in fees from AK Capital pursuant to the AK Capital Agreement.

224


 
 

TABLE OF CONTENTS

SALES OF COMMON STOCK BELOW NET ASSET VALUE

At a Special Meeting of Stockholders on August 11, 2017, our common stockholders approved a proposal that would allow us to issue common stock at a discount from our net asset value (“NAV”) per share, effective for a period expiring on the earlier of August 11, 2018 or the 2018 annual meeting of stockholders. We have agreed to limit the number of shares that we issue at a price below net asset value pursuant to this authorization so that the aggregate dilutive effect on our then outstanding shares will not exceed 20%. Our Board of Directors, subject to its fiduciary duties and regulatory requirements, has the discretion to determine the amount of the discount, and as a result, the discount could be up to 100% of net asset value per share.

In order to sell shares pursuant to any authorization, a majority of our directors who have no financial interest in the sale and a majority of our independent directors must:

find that the sale is in our best interests and in the best interests of our stockholders; and
in consultation with any underwriter or underwriters or sales manager or sales managers of the offering, make a good faith determination as of a time either immediately prior to the first solicitation by us or on our behalf of firm commitments to purchase such shares, or immediately prior to the issuance of such shares of common stock, that the price at which such shares are to be sold is not less than a price which closely approximates the market value of such shares, less any distributing commission or discount.

In making a determination that an offering below net asset value per share is in our and our stockholders’ best interests, our board of directors considers a variety of factors, including matters such as:

The effect that an offering below net asset value per share would have on our stockholders, including the potential dilution they would experience as a result of the offering;
The amount per share by which the offering price per share and the net proceeds per share are less than the most recently determined net asset value per share;
The relationship of recent market prices of common stock to net asset value per share and the potential impact of the offering on the market price per share of our common stock;
Whether the estimated offering price would closely approximate the market value of our shares;
The potential market impact of being able to raise capital during the current financial market difficulties;
The nature of any new investors anticipated to acquire shares of common stock in the offering;
The anticipated rate of return on and quality, type and availability of investments; and
The leverage available to us.

Sales by us of our common stock at a discount from the net asset value per share pose potential risks for our existing stockholders whether or not they participate in the offering, as well as for new investors who participate in the offering. The following three headings and accompanying tables will explain and provide hypothetical examples on the impact of an offering at a price less than the net asset value per share on three different set of investors:

existing stockholders who do not purchase any shares of common stock in the offering;
existing stockholders who purchase a relatively small amount of shares of common stock in the offering or a relatively large amount of shares of common stock in the offering; and
new investors who become stockholders by purchasing shares of common stock in the offering.

The tables below provide hypothetical examples of the impact that an offering at a price less than net asset value per share may have on the net asset value per share of stockholders and investors who do and do not participate in such an offering. However, the tables below do not show, nor are they intended to show, any potential changes in market price that may occur from an offering at a price less than net asset value per share and it is not possible to predict any potential market price change that may occur from such an offering.

225


 
 

TABLE OF CONTENTS

Impact on Existing Stockholders Who Do Not Participate in an Offering of Common Stock

Our existing shareholders who do not participate in an offering below net asset value per share or who do not buy additional shares of common stock in the secondary market at the same or lower price we obtain in the offering (after expenses and commissions) face the greatest potential risk of an immediate decrease (often called dilution) in the net asset value of the shares of common stock they hold and their net asset value per share. These shareholders will also experience a disproportionately greater decrease in their participation in our earnings and assets and their voting power than the increase we will experience in our assets, potential earning power and voting interests due to the offering. These shareholders may also experience a decline in the market price of their shares of common stock, which often reflects to some degree announced or potential increases and decreases in net asset value per share. This decrease could be more pronounced as the size of the offering and level of discounts increases.

The following chart illustrates the level of net asset value dilution that would be experienced by a nonparticipating shareholder in three different hypothetical offerings of different sizes and levels of discount from net asset value per share. It is not possible to predict the level of market price decline that may occur.

The examples assume that the issuer has 17,431,790 common shares outstanding, $474,895,000 in total assets and $224,657,000 in total liabilities. The current net asset value and net asset value per share are thus $250,244,000 and $14.36. The chart illustrates the dilutive effect on Shareholder A of (1) an offering of 871,590 shares of common stock (5% of the outstanding shares of common stock) at $13.64 per share after offering expenses and commission (a 5% discount from net asset value), (2) an offering of 1,743,179 shares of common stock (10% of the outstanding shares of common stock) at $12.92 per share after offering expenses and commissions (a 10% discount from net asset value), (3) an offering of 3,486,358 shares of common stock (20% of the outstanding shares of common stock) at $11.49 per share after offering expenses and commissions (a 20% discount from net asset value) and (4) an offering of 3,486,358 shares of common stock (20% of the outstanding shares of common stock) at $0.02 per share after offering expenses and commissions (a 100% discount from net asset value).

226


 
 

TABLE OF CONTENTS

                 
                 
Prior to Sale Below NAV   Prior to
Sale
  Example 1
5% Offering at
5% Discount
  Example 2
10% Offering at
10% Discount
  Example 3
20% Offering at
20% Discount
  Example 4
20% Offering at
100% Discount
  Following
Sale
  %
Change
  Following
Sale
  %
Change
  Following
Sale
  %
Change
  Following
Sale
  %
Change
Offering Price
                                                                                
Price per Share to Public         $ 14.36           $ 13.60           $ 12.09           $ 0.02        
Net Proceeds per Share to
Issuer
        $ 13.64           $ 12.92           $ 11.49           $ 0.02        
Decrease to Net Asset Value
                                                                                
Total Shares Outstanding     17,431,790       18,303,380       5.00 %      19,174,969       10.00 %      20,918,148       20.00 %      20,918,148       20.00 % 
Net Asset Value per Share   $ 14.36     $ 14.32       (0.27 )%    $ 14.23       (0.94 )%    $ 13.88       (3.36 )%    $ 11.97       (16.67 )% 
Dilution to Nonparticipating Stockholder
                                                                                
Shares Held by Stockholder A     174,318       174,318             174,318             174,318             174,318        
Percentage Held by Stockholder A     1.00 %      0.95 %      (4.76 )%      0.91 %      (9.09 )%      0.83 %      (16.67 )%      0.83 %      (16.67 )% 
Total Net Asset Value Held by Stockholder A   $ 2,503,205     $ 2,496,516       (0.27 )%    $ 2,479,753       (0.94 )%    $ 2,419,127       (3.36 )%    $ 2,085,948       (16.67 )% 
Total Investment by Stockholder A (Assumed to be $14.36 per Share)   $ 2,503,205     $ 2,503,205           $ 2,503,205           $ 2,503,205           $ 2,503,205        
Total Dilution to Stockholder A (Total Net Asset Value Less Total Investment)         $ (6,689 )          $ (23,452 )          $ (84,078 )          $ (417,257 )       
Net Asset Value per Share Held by Stockholder A   $ 14.36     $ 14.32           $ 14.23           $ 13.88           $ 11.97        
Investment per Share Held by Stockholder A (Assumed to be $14.36 per Share on Shares Held Prior to Sale)   $ 14.36     $ 14.36           $ 14.36           $ 14.36           $ 14.36        
Dilution per Share Held by Stockholder A (Net Asset Value per Share Less Investment per Share)         $ (0.03 )          $ (0.13 )          $ (0.48 )          $ (2.39 )       
Percentage Dilution to Stockholder A (Dilution per Share Divided by Investment per Share)                 (0.27 )%               (0.94 )%               (3.36 )%               (16.67 )% 

Impact on Existing Stockholders Who Do Participate in an Offering of Common Stock

Our existing shareholders who participate in an offering below net asset value per share or who buy additional shares of common stock in the secondary market at the same or lower price as we obtain in the offering (after expenses and commissions) will experience the same types of net asset value dilution as the nonparticipating shareholders, albeit at a lower level, to the extent they purchase less than the same percentage of the discounted offering as their interest in our shares of common stock immediately prior to the offering. The level of net asset value dilution will decrease as the number of shares of common stock such shareholders purchase increases. Existing shareholders who buy more than such percentage will experience net asset value dilution on their existing shares but will, in contrast to existing shareholders who purchase less than their proportionate share of the offering, experience an increase (often called accretion) in average net asset value per share over their investment per share and will also experience a disproportionately greater increase in their participation in our earnings and assets and their voting power than our increase in assets, potential earning power and voting interests due to the offering. The level of accretion will increase as the excess number of shares of common stock such shareholders purchases increases. Even a shareholder who over-participates will, however, be subject to the risk that we may make additional discounted offerings in which such shareholder does not participate, in which case such a shareholder will experience net asset value dilution as described above in such subsequent offerings. These shareholders may also experience a decline in the market price of their shares of common stock, which often reflects to some degree announced or potential decreases in net asset value per share. This decrease could be more pronounced as the size of the offering and level of discounts increases.

227


 
 

TABLE OF CONTENTS

The following chart illustrates the level of dilution and accretion in the hypothetical 20% discount offering from the prior chart for a shareholder that acquires shares of common stock equal to (1) 50% of its proportionate share of the offering (i.e., 17,431,790 shares of common stock, which is 0.5% of an offering of 3,486,358 shares of common stock) rather than its 1.00% proportionate share and (2) 150% of such percentage (i.e. 52,295 shares of common stock, which is 1.5% of an offering of 3,486,358 shares of common stock rather than its 0.10% proportionate share). It is not possible to predict the level of market price decline that may occur.

         
Prior to Sale Below NAV   Prior to
Sale
  50% Participation   150% Participation
  Following
Sale
  %
Change
  Following
Sale
  %
Change
Offering Price
                                            
Price per Share to Public         $ 12.09           $ 12.09        
Net Proceeds per Share to Issuer         $ 11.49           $ 11.49        
Decrease/Increase to Net Asset Value
                                            
Total Shares Outstanding     17,431,790       20,918,148       20.00 %      20,918,148       20.00 % 
Net Asset Value per Share   $ 14.36     $ 13.88       (3.36 )%    $ 13.88       (3.36 )% 
Dilution/Accretion to Participating Stockholder
                                            
Shares Held by Stockholder A     174,318       191,750       10.00 %      226,613       30.00 % 
Percentage Held by Stockholder A     1.00 %      0.92 %      (8.33 )%      1.08 %      8.33 % 
Total Net Asset Value Held by Stockholder A   $ 2,503,205     $ 2,661,040       6.31 %    $ 3,144,866       25.63 % 
Total Investment by Stockholder A (Assumed to be $14.36 per Share)         $ 2,714,001           $ 3,135,594        
Total Dilution/Accretion to Stockholder A (Total Net Asset Value Less Total Investment)         $ (52,961 )          $ 9,272        
Net Asset Value per Share held by Stockholder A   $ 14.36     $ 14.15       (1.44 )%    $ 13.84       (3.64 )% 
Investment per Share held by Stockholder A (Assumed to be $14.36 per Share on Shares Held Prior to Sale)         $ 13.88           $ 13.88        
Dilution/Accretion per Share Held by Stockholder A (Net Asset Value per Share Less Investment per Share)         $ (0.28 )          $ 0.04        
Percentage Dilution to Stockholder A (Dilution/Accretion per Share Divided by Investment per Share)                 (1.99 )%            0.29 % 

Impact on New Investors of Common Stock

Investors who are not currently shareholders and who participate in an offering of our common stock below net asset value but whose investment per share is greater than the resulting net asset value per share due to selling compensation and expenses paid by the issuer will experience an immediate decrease, albeit small, in the net asset value of their shares of common stock and their net asset value per share compared to the price they pay for their shares of common stock. Investors who are not currently shareholders and who participate in an offering below net asset value per share and whose investment per share is also less than the resulting net asset value per share due to selling compensation and expenses paid by the issuer being significantly less than the discount per share will experience an immediate increase in the net asset value of their shares of common stock and their net asset value per share compared to the price they pay for their shares of common stock. These investors will experience a disproportionately greater participation in our earnings and assets and their voting power than our increase in assets, potential earning power and voting

228


 
 

TABLE OF CONTENTS

interests. These investors will, however, be subject to the risk that we may make additional discounted offerings in which such new shareholder does not participate, in which case such new shareholder will experience dilution as described above in such subsequent offerings. These investors may also experience a decline in the market price of their shares of common stock, which often reflects to some degree announced or potential increases and decreases in net asset value per share. This decrease could be more pronounced as the size of the offering and level of discounts increases.

The following chart illustrates the level of dilution or accretion for new investors that would be experienced by a new investor in the same hypothetical 5%, 10% and 20% discounted offerings as described in the first chart above. The illustration is for a new investor who purchases the same percentage (1.00%) of the shares of common stock in the offering as Shareholder A in the prior examples held immediately prior to the offering. It is not possible to predict the level of market price decline that may occur.

             
Prior to Sale Below NAV   Prior to Sale   Example 1
5% Offering at
5% Discount
  Example 2
10% Offering at
10% Discount
  Example 3
20% Offering at
20% Discount
  Following
Sale
  %
Change
  Following
Sale
  %
Change
  Following
Sale
  %
Change
Offering Price
                                                              
Price per Share to Public         $ 14.36           $ 13.60           $ 12.09        
Net Proceeds per Share to Issuer         $ 13.64           $ 12.92           $ 11.49        
Decrease to Net Asset Value
                                                              
Total Shares Outstanding     17,431,790       18,303,380       5.00 %      19,174,969       10.00 %      20,918,148       20.00 % 
Net Asset Value per
Share
  $ 14.36     $ 14.32       (0.27 )%    $ 14.23       (0.94 )%    $ 13.88       (3.36 )% 
Dilution/Accretion to a New Investor
                                                              
Shares Held by Investor A     174,318       8,716             17,432             34,864        
Percentage Held by Investor A     1.00 %      0.05 %            0.09 %            0.17 %       
Total Net Asset Value Held by Investor A   $ 2,503,205     $ 124,826           $ 247,975           $ 483,825        
Total Investment by Investor A (Assumed to be $14.36 per Share)   $ 2,503,205     $ 125,160           $ 237,146           $ 421,592        
Total Dilution to Investor A (Total Net Asset Value Less Total Investment)         $ (334 )          $ 10,830           $ 62,233        
Net Asset Value per Share Held by Investor A   $ 14.36     $ 14.32           $ 14.23           $ 13.88        
Investment per Share Held by Investor A (Assumed to be $14.36 per Share on Shares Held Prior to
Sale)
  $ 14.36     $ 14.36           $ 13.60           $ 12.09        
Dilution per Share Held by Investor A (Net Asset Value per Share Less Investment per Share)         $ (0.04 )          $ 0.62           $ 1.79        
Percentage Dilution to Investor A (Dilution per Share Divided by Investment per Share)                 (0.27 )%               4.57 %               14.76 % 

229


 
 

TABLE OF CONTENTS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth, as of August 21, 2017, the beneficial ownership of each current director, the nominees for director, the Company’s executive officers, each person known to us to beneficially own 5% or more of the outstanding Common Shares, and the executive officers and directors as a group. Percentage of beneficial ownership is based on 17,401,048 Common Shares outstanding as of August 21, 2017. Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. If applicable and available, ownership information for those persons who beneficially own 5% or more of our Common Shares is based upon filings by such persons with the SEC and other information obtained from such persons.

Unless otherwise indicated, the Company believes that each beneficial owner set forth in the table has sole voting and investment power and has the same address as the Company. The Company’s directors are divided into two groups — interested directors and independent directors. Interested directors are “interested persons” of the Company as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”). Unless otherwise indicated, the addresses of all executive officers and directors are c/o Newtek Business Services Corp., 1981 Marcus Avenue, Suite 130, Lake Success, New York 11042.

   
Name of Beneficial Owner   Number of
Shares Beneficially
Owned
  Percent of
Class
Interested Directors:
                 
Barry Sloane(1)     992,633       5.7 % 
Peter Downs(1)     18,237      
Independent Directors:
                 
Gregory Zink     7,189      
Salvatore Mulia     65,163      
Richard Salute     5,934      
Executive Officers:
                 
Jennifer Eddelson(1)     32,761      
Michael Schwartz(1)     7,646      
John Raven(1)     2,166      
All current directors and executive officers as a group (8 persons)     1,137,729       6.5 % 

* Less than 1% of total Common Shares outstanding as of August 21, 2017.
(1) Includes restricted Common Shares awarded pursuant to the Amended and Restated 2014 Stock Incentive Plan (the “2015 Stock Plan”) as detailed in the Compensation Discussion and Analysis below.

Dollar Range of Equity Securities in the Company Beneficially Owned by Each Director:

 
Name of Director   Dollar Range of
Equity Securities in Newtek
Business Services Corp.(1)(2)
Interested Directors:
        
Barry Sloane     Over $100,000  
Peter Downs     Over $100,000  
Independent Directors:
        
Richard Salute     Over $100,000  
Salvatore Mulia     Over $100,000  
Gregory Zink     Over $100,000  

(1) Dollar ranges are as follows: None, $1 – 10,000, $10,001 – $50,000, $50,001 – $100,000, or Over $100,000.
(2) The dollar range of equity securities beneficially owned in us is based on the closing price for our Common Shares of $17.15 on August 21, 2017 on the Nasdaq Global Market. Beneficial ownership has been determined in accordance with Rule 16a-1(a)(2) of the Exchange Act.

230


 
 

TABLE OF CONTENTS

REGULATION

General

We have elected to be regulated as a BDC under the 1940 Act. We have also elected to be treated for tax purposes as a RIC under Subchapter M of the Code. The 1940 Act contains prohibitions and restrictions relating to transactions between BDCs and their affiliates (including any investment advisers or sub-advisers), principal underwriters and affiliates of those affiliates or underwriters and requires that a majority of the directors be persons other than “interested persons,” as that term is defined in the 1940 Act.

In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by “a majority of our outstanding voting securities” as defined in the 1940 Act. A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (a) 67% or more of such company’s voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company. We do not anticipate any substantial change in the nature of our business.

We are not generally able to issue and sell our common stock at a price below net asset value per share. We may, however, issue and sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value of our common stock if (1) our board of directors determines that such sale is in our best interests and the best interests of our stockholders, and (2) our stockholders have approved our policy and practice of making such sales within the preceding 12 months. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our board of directors, closely approximates the market value of such securities. At our Special Meeting of Stockholders on August 11, 2017, our stockholders approved a proposal authorizing us to sell up to 20% of our common stock at a price below our then-current net asset value per share, subject to approval by our board of directors for the offering. The authorization expires on the earlier of August 11, 2018 or the date of our 2018 Annual Meeting of Stock holders, which is expected to be held in June 2018.

As a BDC, we are required to meet a coverage ratio of the value of total assets to senior securities, which include all of our borrowings and any preferred stock we may issue in the future, of at least 200%. We may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our board of directors who are not interested persons and, in some cases, prior approval by the SEC.

We may invest up to 100% of our assets in securities acquired directly from issuers in privately negotiated transactions. With respect to such securities, we may, for the purpose of public resale, be deemed an “underwriter” as that term is defined in the Securities Act of 1933, or the Securities Act. We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, except for registered money market funds, we generally cannot acquire more than 3% of the voting stock of any investment company, invest more than 5% of the value of our total assets in the securities of one investment company or invest more than 10% of the value of our total assets in the securities of more than one investment company. With regard to that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might indirectly subject our stockholders to additional expenses as they will indirectly be responsible for the costs and expenses of such companies. None of our investment policies are fundamental and any may be changed without stockholder approval.

231


 
 

TABLE OF CONTENTS

Qualifying Assets

Under the 1940 Act, a BDC may not 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. The principal categories of qualifying assets relevant to our proposed business are the following:

(1) Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer which:
(a) is organized under the laws of, and has its principal place of business in, the United States;
(b) is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and
(c) does not have any class of securities listed on a national securities exchange; or if it has securities listed on a national securities exchange such company has a market capitalization of less than $250 million; is controlled by the BDC and has an affiliate of a BDC on its board of directors; or meets such other criteria as may be established by the SEC.
(2) Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.
(3) Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company.
(4) Securities received in exchange for or distributed on or with respect to securities described in (1) through (3) above, or pursuant to the exercise of warrants or rights relating to such securities.
(5) Cash, cash equivalents, U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment.

Control, as defined by the 1940 Act, is presumed to exist where a BDC beneficially owns more than 25% of the outstanding voting securities of the portfolio company.

We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, we generally cannot acquire more than 3% of the voting stock of any investment company (as defined in the 1940 Act), invest more than 5% of the value of our total assets in the securities of one such investment company or invest more than 10% of the value of our total assets in the securities of such investment companies in the aggregate. With regard to that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might subject our stockholders to additional expenses.

Significant Managerial Assistance

A BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in “Qualifying Assets” above. Business development companies generally must offer to make available to the issuer of the securities significant managerial assistance, except in circumstances where either (i) the business development company controls such issuer of securities or (ii) the business development company purchases such securities in conjunction with one or more other persons acting together and one of the other persons in the group makes available such managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted,

232


 
 

TABLE OF CONTENTS

does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

Temporary Investments

Pending investment in other types of “qualifying assets,” as described above, our investments may consist of cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment, which we refer to, collectively, as temporary investments, so that 70% of our assets are qualifying assets. Typically, we invest in highly rated commercial paper, U.S. Government agency notes, U.S. Treasury bills or in repurchase agreements relating to such securities that are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. Consequently, repurchase agreements are functionally similar to loans. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, the 1940 Act and certain diversification tests in order to qualify as a RIC for federal income tax purposes typically require us to limit the amount we invest with any one counterparty. Our investment Advisor monitors the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.

Warrants and Options

Under the 1940 Act, a BDC is subject to restrictions on the amount of warrants, options, restricted stock or rights to purchase shares of capital stock that it may have outstanding at any time. Under the 1940 Act, we may generally only offer warrants provided that (i) the warrants expire by their terms within ten years, (ii) the exercise or conversion price is not less than the current market value at the date of issuance, (iii) our stockholders authorize the proposal to issue such warrants, and our board of directors approves such issuance on the basis that the issuance is in the best interests of the Company and its stockholders and (iv) if the warrants are accompanied by other securities, the warrants are not separately transferable unless no class of such warrants and the securities accompanying them has been publicly distributed. The 1940 Act also provides that the amount of our voting securities that would result from the exercise of all outstanding warrants, as well as options and rights, at the time of issuance may not exceed 25% of our outstanding voting securities. In particular, the amount of capital stock that would result from the conversion or exercise of all outstanding warrants, options or rights to purchase capital stock cannot exceed 25% of the BDC’s total outstanding shares of capital stock.

Senior Securities; Coverage Ratio

We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 200% immediately after each such issuance. In addition, we may not be permitted to declare any cash dividend or other distribution on our outstanding common shares, or purchase any such shares, unless, at the time of such declaration or purchase, we have asset coverage of at least 200% after deducting the amount of such dividend, distribution, or purchase price. We may also borrow amounts up to 5% of the value of our total assets for temporary purposes. For a discussion of the risks associated with the resulting leverage, see “Risk Factors —  Risks Related to Our Business And Structure — Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.” For a discussion of the risks associated with the resulting leverage, see “Risk Factors — Risks Related to Our Business Structure —  Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us.”

Issuance of Shares Below Current Net Asset Value

At a Special Meeting of Stockholders on August 11, 2017, our common stockholders approved a proposal that allows us to issue common stock at a discount from our net asset value (“NAV”) per share, effective for a period expiring on the earlier of August 11, 2018 or the 2018 annual meeting of our stockholders. We have agreed to limit the number of shares that we issue at a price below net asset value pursuant to this authorization so that the aggregate dilutive effect on our then outstanding shares will not exceed 20%. Our

233


 
 

TABLE OF CONTENTS

Board of Directors, subject to its fiduciary duties and regulatory requirements, has the discretion to determine the amount of the discount, and as a result, the discount could be up to 100% of net asset value per share.

For additional information see “Sale of Common Stock Below Net Asset Value.”

Code of Ethics

We have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts certain transactions by our personnel. Our code of ethics generally does not permit investments by our employees in securities that may be purchased or held by us. You may read and copy our code of ethics at the SEC’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the code of ethics is attached as an exhibit to the registration statement of which this prospectus is a part, and is available on the EDGAR Database on the SEC’s Internet site at www.sec.gov. You may also obtain copies of the code of ethics, after paying a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov, or by writing the SEC’s Public Reference Section, 100 F Street, N.E., Washington, D.C. 20549. Our code of ethics is also available on our website at www.NewtekOne.com.

Compliance Policies and Procedures

We have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws and are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and designate a chief compliance officer to be responsible for administering the policies and procedures. Mr. Michael Schwartz currently serves as our Chief Compliance Officer.

Privacy Principles

We are committed to maintaining the privacy of our stockholders and safeguarding their non-public personal information. The following information is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, we do not receive any non-public personal information relating to our stockholders, although certain non-public personal information of our stockholders may become available to us. We do not disclose any non-public personal information about our stockholders or former stockholders to anyone, except as permitted by law or as is necessary in order to service stockholder accounts (for example, to a transfer agent).

We restrict access to non-public personal information about our stockholders to our employees with a legitimate business need for the information. We maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of our stockholders.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example:

pursuant to Rule 13a-14 of the 1934 Act, our Chief Executive Officer and Chief Accounting Officer must certify the accuracy of the consolidated financial statements contained in our periodic reports;
pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures;
pursuant to Rule 13a-15 of the 1934 Act, our management must prepare a report regarding its assessment of our internal controls over financial reporting; and
pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the 1934 Act, our periodic reports must disclose whether there were significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

234


 
 

TABLE OF CONTENTS

The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.

Proxy Voting Policies and Procedures

We vote proxies relating to our portfolio securities in a manner in which we believe is in the best interest of our stockholders. We review on a case-by-case basis each proposal submitted to a stockholder vote to determine its impact on the portfolio securities held by us. Although we generally vote against proposals that may have a negative impact on our portfolio securities, we may vote for such a proposal if there exists compelling long-term reasons to do so.

Our proxy voting decisions are made by our senior lending team and our executive committee, which are responsible for monitoring each of our investments. To ensure that our vote is not the product of a conflict of interest, we require that: (i) anyone involved in the decision making process disclose to our chief compliance officer any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote; and (ii) employees involved in the decision making process or vote administration are prohibited from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties.

Stockholders may obtain information regarding how we voted proxies with respect to our portfolio securities by making a written request for information to: Chief Compliance Officer, 1981 Marcus Avenue, Suite 130, Lake Success,| NY 11042.

Exemptive Relief

On May 10, 2016, we received an order from the SEC for exemptive relief that, with the shareholders’ approval we received on July 27, 2016, allows us to take certain actions that would otherwise be prohibited by the 1940 Act, as applicable to BDCs. Specifically, the order permits us to (i) issue restricted stock awards to our officers, employees and directors, (ii) issue stock options to our non-employee directors, (iii) withhold shares of the Company’s common stock to satisfy tax withholding obligations relating to the vesting of restricted stock or the exercise of options that were granted to pursuant to the 2014 Plan or the Amended Stock Plan, and (iv) permit participants to pay the exercise price of Options that were granted to them pursuant to the 2014 Plan or will be granted to them pursuant to Amended Stock Plan with shares of Applicant’s common stock.

Other

We will be periodically examined by the SEC for compliance with the Exchange Act and the 1940 Act.

We are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office.

We are required to adopt and implement written policies and procedures reasonably designed to prevent violation of the federal securities laws, review these policies and procedures annually for their adequacy and the effectiveness of their implementation. We have designated Michael Schwartz to be our Chief Compliance Officer to be responsible for administering these policies and procedures.

Nasdaq Global Market Requirements

We have adopted certain policies and procedures intended to comply with the Nasdaq Global Market’s corporate governance rules. We will continue to monitor our compliance with all future listing standards that are approved by the SEC and will take actions necessary to ensure that we are in compliance therewith.

Regulation as a Small Business Lending Company

Our wholly owned subsidiary, NSBF, is licensed by the SBA as an SBLC that originates loans through the SBA 7(a) Program. The SBA 7(a) Program is the SBA’s primary loan program. In order to operate as a SBLC, a licensee is required to maintain a minimum regulatory capital (as defined by SBA regulations) of the

235


 
 

TABLE OF CONTENTS

greater of (1) 10% of its outstanding loans receivable and other investments or (2) $1.0 million. In addition, a SBLC is subject to certain other regulatory restrictions.

The SBA generally reduces risks to lenders by guaranteeing major portions of qualified loans made to small businesses. This enables lenders to provide financing to small businesses when funding may otherwise be unavailable or not available on reasonable terms. Under the SBA 7(a) Program, the SBA typically guarantees 75% of qualified loans over $150,000. The eligibility requirements of the SBA 7(a) Program vary by the industry of the borrower and affiliates and other factors.

Under current law, SBA 7(a) lenders must share equally with the SBA any SBA 7(a) loan premium in excess of 110% of the par value of such loans. Legislation pending in the U.S. Senate would, among other things, require SBA 7(a) lenders to share equally with the SBA any SBA 7(a) loan premium in excess of 108% of the par value of such loans, thereby decreasing the share of loan premium received by the SBA 7(a) lender. Such legislation also would impose a new fee of 3 basis points on the guaranteed portion of the SBA 7(a) loan. If passed in its present form, the legislation could serve to negatively impact the profitability of SBA 7(a) loans.

The SBA maintains PLP status to certain lenders originating SBA 7(a) Program loans based on achievement of certain standards in lending which are regularly monitored by the SBA. NSBF has been granted national PLP status and originates, sells and services small business loans. As a Preferred Lender, NSBF is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Designated PLP lenders are delegated the authority to process, close, service, and liquidate most SBA guaranteed loans without prior SBA review. PLP lenders are authorized to make SBA guaranteed loans, subject only to a brief eligibility review and assignment of a loan number by SBA. In addition, they are expected to handle servicing and liquidation of all of their SBA loans with limited involvement of SBA.

Among other things, SBLCs are required to: submit to the SBA for review a credit policy that demonstrates the SBLC’s compliance with the applicable regulations and the SBA’s Standard Operating Procedures for origination, servicing and liquidation of 7(a) loans; submit to the SBA for review and approval annual validation, with supporting documentation and methodologies, demonstrating that any scoring model used by the SBLC is predictive of loan performance; obtain SBA approval for loan securitization and borrowings; and adopt and fully implement an internal control policy which provides adequate direction for effective control over and accountability for operations, programs, and resources.

Pursuant to the SBA’s regulations, the SBA is released from liability on its guaranty of a 7(a) loan and may, in its sole discretion, refuse to honor a guaranty purchase request in full or in part, or recover all or part of the funds already paid in connection with a guaranty purchase, if the lender failed to comply materially with a program requirement; failed to make, close, service or liquidate the loan in a prudent manner; placed the SBA at risk through improper action or inaction; failed to disclose a material fact to the SBA in a timely manner; or misrepresented a material fact to the SBA regarding the loan. In certain instances, the SBA may require a specific dollar amount be deducted from the funds the SBA pays on the lender’s guaranty in order to fully compensate for an actual or anticipated loss caused by the lender’s actions or omissions. Such repair does not reduce the percent of the loan guaranteed by SBA or SBA’s pro-rata share of expenses or recoveries.

The SBA restricts the ability of an SBLC to lend money to any of its officers, directors and employees or to invest in associates thereof. The SBA also prohibits, without prior SBA approval, a “change of control” of an SBLC. A “change of control” is any event which would result in the transfer of the power, direct or indirect, to direct the management and policies of a SBLC, whether through ownership, contractual arrangements or otherwise. SBLCs are periodically examined and audited by the SBA to determine compliance with SBA regulations.

236


 
 

TABLE OF CONTENTS

In connection with our most recent examination by the SBA, we entered into a voluntary agreement with the SBA. We have adopted the agreement pursuant to our commitment to operate under the SBA’s regulations and the agreement formalizes many of the actions we have already taken to strengthen our operational procedures as they relate to our delegated lender authorities. Consistent with the terms of the agreement, we will expand NSBF’s board of managers and increase the number of independent members of the board, add at least one additional voting member to NSBF’s Credit Committee and take certain actions to demonstrate the sufficiency of NSBF’s liquidity. We also provided an account to bolster our liquidity position at NSBF. In relation to the rapid growth of our 7(a) loan portfolio, we continue to assess and develop our policies and procedures to facilitate the successful implementation of our business, liquidity and operations.

237


 
 

TABLE OF CONTENTS

DETERMINATION OF NET ASSET VALUE

We determine the net asset value of our investment portfolio each quarter by subtracting our total liabilities from the fair value of our gross assets.

We conduct the valuation of our assets, pursuant to which our net asset value shall be determined, at all times consistent with GAAP and the 1940 Act. Our valuation procedures are set forth in more detail below.

Securities for which market quotations are readily available on an exchange shall be valued at such price as of the closing price on the day of valuation. We also obtain quotes with respect to certain of our investments from pricing services or brokers or dealers in order to value assets. When doing so, we determine whether the quote obtained is sufficient according to GAAP to determine the fair value of the security. If determined adequate, we will use the quote obtained.

Securities for which reliable market quotations are not readily available or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of our board of directors, does not represent fair value, which we expect may represent a substantial majority of the investments in our portfolio, shall be valued as follows: (i) each portfolio company or investment is initially valued by the investment professionals responsible for the portfolio investment; (ii) preliminary valuation conclusions are documented and discussed with our Senior Lending Team and Executive Committee; (iii) independent third-party valuation firms engaged by, or on behalf of, the board of directors will conduct independent appraisals, review management’s preliminary valuations and prepare separate preliminary valuation conclusions on a selected basis; and (iv) the board of directors will discuss valuations and determine the fair value of each investment in our portfolio in good faith.

Determination of the fair value involves subjective judgments and estimates not susceptible to substantiation by auditing procedures. Accordingly, under current auditing standards, the notes to our financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements.

The recommendation of fair value is generally based on the following factors, as relevant:

the nature and realizable value of any collateral;
the portfolio company’s ability to make payments;
the portfolio company’s earnings and discounted cash flow;
the markets in which the issuer does business; and
comparisons to publicly traded securities.

Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include, but are not limited to, the following:

private placements and restricted securities that do not have an active trading market;
securities whose trading has been suspended or for which market quotes are no longer available;
debt securities that have recently gone into default and for which there is no current market;
securities whose prices are stale;
securities affected by significant events; and
securities that our investment professional believe were priced incorrectly.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our financial statements will express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements.

Determinations in Connection with Future Offerings

In connection with future offerings of shares of our common stock, our board of directors or an authorized committee thereof will be required to make a good faith determination that we are not selling

238


 
 

TABLE OF CONTENTS

shares of our common stock at a price below the then current net asset value of our common stock at the time at which the sale is made. Our board of directors or an authorized committee thereof will consider the following factors, among others, in making such a determination:

the net asset value of our common stock disclosed in the most recent periodic report that we filed with the SEC;
our management’s assessment of whether any material change in the net asset value of our common stock has occurred (including through the realization of gains on the sale of our portfolio securities) during the period beginning on the date of the most recently disclosed net asset value of our common stock and ending as of a time within 48 hours (excluding Sundays and holidays) of the sale of our common stock; and
the magnitude of the difference between (i) a value that our board of directors or an authorized committee thereof has determined reflects the current (as of a time within 48 hours, excluding Sundays and holidays) net asset value of our common stock, which is based upon the net asset value of our common stock disclosed in the most recent periodic report that we filed with the SEC, as adjusted to reflect our management’s assessment of any material change in the net asset value of our common stock since the date of the most recently disclosed net asset value of our common stock, and (ii) the offering price of the shares of our common stock in the proposed offering.

Moreover, to the extent that there is even a remote possibility that we may (i) issue shares of our common stock at a price per share below the then current net asset value per share of our common stock at the time at which the sale is made or (ii) trigger the undertaking (which we provide in certain registration statements we file with the SEC) to suspend the offering of shares of its common stock if the net asset value per share of our common stock fluctuates by certain amounts in certain circumstances until the prospectus is amended, our board of directors will elect, in the case of clause (i) above, either to postpone the offering until such time that there is no longer the possibility of the occurrence of such event or to undertake to determine the net asset value per share of its common stock within two days prior to any such sale to ensure that such sale will not be below its then current net asset value per share, and, in the case of clause (ii) above, to comply with such undertaking or to undertake to determine the net asset value per share of its common stock to ensure that such undertaking has not been triggered.

These processes and procedures are part of our compliance policies and procedures. Records will be made contemporaneously with all determinations described in this section and these records will be maintained with other records that we are required to maintain under the 1940 Act.

239


 
 

TABLE OF CONTENTS

DIVIDEND REINVESTMENT PLAN

We have adopted a dividend reinvestment plan that provides for reinvestment of our dividends and other distributions on behalf of our stockholders, unless a stockholder elects to receive cash as provided below. As a result, if our board of directors authorizes, and we declare, a cash distribution, our stockholders who have not “opted out” of our dividend reinvestment plan will have their cash distributions automatically reinvested in additional shares of our common stock, rather than receiving the cash distributions. In this way, a stockholder can maintain an undiluted investment in us and still allow us to pay out the required distributable income.

No action will be required on the part of a registered stockholder to have his cash distribution reinvested in shares of our common stock. A registered stockholder may elect to receive an entire distribution in cash by notifying American Stock Transfer & Trust Company, LLC, the plan administrator and our transfer agent and registrar, in writing so that such notice is received by the plan administrator by the record date for distributions to stockholders. The plan administrator will set up an account for shares acquired through the plan for each stockholder who has not elected to receive distributions in cash and hold such shares in non-certificated form. Upon request by a stockholder participating in the plan, received in writing not less than 10 days prior to the record date, the plan administrator will, instead of crediting shares to the participant’s account, issue a certificate registered in the participant’s name for the number of whole shares of our common stock and a check for any fractional share.

Those stockholders whose shares are held by a broker or other financial intermediary may receive distributions in cash by notifying their broker or other financial intermediary of their election.

We expect to use primarily newly issued shares to implement the plan, whether our shares are trading at a premium or at a discount to net asset value. Under such circumstances, the number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the distribution payable to such stockholder by the market price per share of our common stock at the close of regular trading on the valuation date for such distribution. Market price per share on that date will be the closing price for such shares on the national securities exchange on which our shares are then listed or, if no sale is reported for such day, at the average of their reported bid and asked prices. We reserve the right to purchase shares in the open market in connection with our implementation of the plan. Shares purchased in open market transactions by the plan administrator will be allocated to a stockholder based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market.

There will be no brokerage charges or other charges to stockholders who participate in the plan. The plan administrator’s fees under the plan will be paid by us. If a participant elects by written notice to the plan administrator to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a transaction fee of $15.00 plus a $0.10 per share brokerage commission from the proceeds.

Stockholders who receive distributions in the form of stock are subject to the same federal, state and local tax consequences as are stockholders who elect to receive their distributions in cash. A stockholder’s basis for determining gain or loss upon the sale of stock received in a distribution from us will be equal to the total dollar amount of the distribution payable to the stockholder. Any stock received in a distribution will have a new holding period for tax purposes commencing on the day following the day on which the shares are credited to the U.S. stockholder’s account.

Participants may terminate their accounts under the plan by notifying the plan administrator via its website at www.amstock.com, by filling out the transaction request form located at the bottom of their statement and sending it to the plan administrator at the address set forth below or by calling the plan administrator at 1-800-278-4353.

The plan may be terminated by us upon notice in writing mailed to each participant at least 30 days prior to any record date for the payment of any distribution by us. All correspondence concerning the plan should be directed to the plan administrator by mail at American Stock Transfer & Trust Company, LLC, 6201 15th Avenue, Brooklyn, New York 11219 or by phone at 1-800-278-4353.

240


 
 

TABLE OF CONTENTS

MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS

The following discussion is a general summary of the material U.S. federal income tax considerations applicable to us and to an investment in our shares. This summary does not purport to be a complete description of the income tax considerations applicable to such an investment. For example, we have not described tax consequences that may be relevant to certain types of holders subject to special treatment under U.S. federal income tax laws, including stockholders subject to the alternative minimum tax, tax-exempt organizations, insurance companies, dealers in securities, a trader in securities that elects to use a market-to-market method of accounting for its securities holdings, pension plans and trusts, and financial institutions. This summary assumes that investors hold our common stock as capital assets (within the meaning of the Code). The discussion is based upon the Code, Treasury regulations, and administrative and judicial interpretations, each as of the date of this prospectus and all of which are subject to change, possibly retroactively, which could affect the continuing validity of this discussion. We have not sought and will not seek any ruling from the IRS regarding this offering. This summary does not discuss any aspects of U.S. estate or gift tax or foreign, state or local tax. It does not discuss the special treatment under U.S. federal income tax laws that could result if we invested in tax-exempt securities or certain other investment assets.

This summary does not discuss the consequences of an investment in our preferred stock, subscription rights, debt securities or warrants representing rights to purchase shares of our preferred stock, common stock or debt securities. The U.S. federal income tax consequences of such an investment will be discussed in the relevant prospectus supplement.

A “U.S. stockholder” generally is a beneficial owner of shares of our common stock who is for U.S. federal income tax purposes:

A citizen or individual resident of the United States;
A corporation or other entity treated as a corporation, for U.S. federal income tax purposes, created or organized in or under the laws of the United States or any political subdivision thereof;
A trust if a court within the United States is asked to exercise primary supervision over the administration of the trust and one or more United States persons have the authority to control all substantive decisions of the trust (or a trust which has made a valid election to be treated as a U.S. trust); or
An estate, the income of which is subject to U.S. federal income taxation regardless of its source.

A “Non-U.S. stockholder” generally is a beneficial owner of shares of our common stock who is not a U.S. stockholder. If a partnership (including an entity treated as a partnership for U.S. federal income tax purposes) holds shares of our common stock, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. A prospective stockholder that is a partner of a partnership holding shares of our common stock should consult his, her or its tax advisers with respect to the purchase, ownership and disposition of shares of our common stock.

Tax matters are very complicated and the tax consequences to an investor of an investment in our shares will depend on the facts of his, her or its particular situation. We encourage investors to consult their own tax advisers regarding the specific consequences of such an investment, including tax reporting requirements, the applicability of federal, state, local and foreign tax laws, eligibility for the benefits of any applicable tax treaty and the effect of any possible changes in the tax laws.

Election to be Taxed as a RIC

As a BDC, we have elected to be treated, and intend to qualify annually thereafter, as a RIC under Subchapter M of the Code, beginning with our 2015 taxable year. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any income that we distribute to our stockholders as dividends. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, to qualify for RIC tax treatment we must distribute to our stockholders, for each taxable year, at least 90% of our “investment company taxable income,” which is generally our ordinary income plus the excess of our realized net short-term capital gains over our realized net long-term capital losses (the “Annual Distribution Requirement”).

241


 
 

TABLE OF CONTENTS

Taxation as a Regulated Investment Company

For any taxable year in which we:

qualify as a RIC; and
satisfy the Annual Distribution Requirement,

We generally will not be subject to U.S. federal income tax on the portion of our income we distribute (or are deemed to distribute) to stockholders. We will be subject to U.S. federal income tax at the regular corporate rates on any income or capital gains not distributed (or deemed distributed) to our stockholders.

We will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (1) 98% of our net ordinary income for each calendar year, (2) 98.2% of our capital gain net income for the one-year period ending October 31 in that calendar year and (3) any income recognized, but not distributed, in preceding years and on which we paid no corporate-level income tax (the “Excise Tax Avoidance Requirement”). We generally will endeavor in each taxable year to make sufficient distributions to our stockholders to avoid any U.S. federal excise tax on our earnings.

In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:

continue to qualify as a BDC under the 1940 Act at all times during each taxable year;
derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to loans of certain securities, gains from the sale of stock or other securities, net income from certain “qualified publicly traded partnerships,” or other income derived with respect to our business of investing in such stock or securities (the “90% Income Test”); and
diversify our holdings so that at the end of each quarter of the taxable year:
at least 50% of the value of our assets consists of cash, cash equivalents, U.S. Government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and
no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer, of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or of certain “qualified publicly traded partnerships” (the “Diversification Tests”).

Qualified earnings may exclude such income as management fees received in connection with our subsidiaries or other potential outside managed funds and certain other fees.

We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue discount (such as debt instruments with PIK interest or, in certain cases, increasing interest rates or issued with warrants), we must include in income each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in income other amounts that we have not yet received in cash, such as PIK interest, deferred loan origination fees that are paid after origination of the loan or are paid in non-cash compensation such as warrants or stock, or certain income with respect to equity investments in foreign corporations. Because any original issue discount or other amounts accrued will be included in our investment company taxable income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we will not have received any corresponding cash amount. The Company does not currently hold investments that have original issue discount.

242


 
 

TABLE OF CONTENTS

Gain or loss realized by us from the sale or exchange of warrants acquired by us as well as any loss attributable to the lapse of such warrants generally will be treated as capital gain or loss. Such gain or loss generally will be long-term or short-term, depending on how long we held a particular warrant.

Although we do not presently expect to do so, we are authorized to borrow funds and to sell assets in order to satisfy the Annual Distribution Requirement and the Excise Tax Avoidance Requirement. However, under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt obligations and other senior securities are outstanding unless certain “asset coverage” tests are met. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous. If we are prohibited from making distributions or are unable to obtain cash from other sources to make the distributions, we may fail to qualify as a RIC, which would result in us becoming subject to corporate-level federal income tax.

In addition, we will be partially dependent on our subsidiaries for cash distributions to enable us to meet the RIC distribution requirements. Some of our subsidiaries may be limited by the Small Business Investment Act of 1958, and SBA regulations, from making certain distributions to us that may be necessary to maintain our status as a RIC. We may have to request a waiver of the SBA’s restrictions for our subsidiaries to make certain distributions to maintain our RIC status. We cannot assure you that the SBA will grant such waiver. If our subsidiaries are unable to obtain a waiver, compliance with the SBA regulations may cause us to fail to qualify as a RIC, which would result in us becoming subject to corporate-level federal income tax.

The remainder of this discussion assumes that we qualify as a RIC and have satisfied the Annual Distribution Requirement.

Any transactions in options, futures contracts, constructive sales, hedging, straddle, conversion or similar transactions, and forward contracts will be subject to special tax rules, the effect of which may be to accelerate income to us, defer losses, cause adjustments to the holding periods of our investments, convert long-term capital gains into short-term capital gains, convert short-term capital losses into long-term capital losses or have other tax consequences. These rules could affect the amount, timing and character of distributions to stockholders. We do not currently intend to engage in these types of transactions.

A RIC is limited in its ability to deduct expenses in excess of its “investment company taxable income” (which is, generally, ordinary income plus net realized short-term capital gains in excess of net realized long-term capital losses). If our expenses in a given year exceed gross taxable income (e.g., as the result of large amounts of equity-based compensation), we would experience a net operating loss for that year. However, a RIC is not permitted to carry forward net operating losses to subsequent years. In addition, expenses can be used only to offset investment company taxable income, not net capital gain. Due to these limits on the deductibility of expenses, we may for tax purposes have aggregate taxable income for several years that we are required to distribute and that is taxable to our stockholders even if such income is greater than the aggregate net income we actually earned during those years. Such required distributions may be made from our cash assets or by liquidation of investments, if necessary. We may realize gains or losses from such liquidations. In the event we realize net capital gains from such transactions, you may receive a larger capital gain distribution than you would have received in the absence of such transactions.

Investment income received from sources within foreign countries, or capital gains earned by investing in securities of foreign issuers, may be subject to foreign income taxes withheld at the source. In this regard, withholding tax rates in countries with which the United States does not have a tax treaty are often as high as 35% or more. The United States has entered into tax treaties with many foreign countries that may entitle us to a reduced rate of tax or exemption from tax on this related income and gains. The effective rate of foreign tax cannot be determined at this time since the amount of our assets to be invested within various countries is not now known. We do not anticipate being eligible for the special election that allows a RIC to treat foreign income taxes paid by such RIC as paid by its stockholders.

243


 
 

TABLE OF CONTENTS

If we purchase shares in a “passive foreign investment company,” or PFIC, we may be subject to U.S. federal income tax on a portion of any “excess distribution” or gain from the disposition of such shares even if such income is distributed as a taxable dividend by us to our stockholders. Additional charges in the nature of interest may be imposed on us in respect of deferred taxes arising from such distributions or gains. If we invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, or QEF, in lieu of the foregoing requirements, we will be required to include in income each year a portion of the ordinary earnings and net capital gain of the QEF, even if such income is not distributed to it. Alternatively, we can elect to mark-to-market at the end of each taxable year our shares in a PFIC; in this case, we will recognize as ordinary income any increase in the value of such shares and as ordinary loss any decrease in such value to the extent it does not exceed prior increases included in income. Under either election, we may be required to recognize in a year income in excess of our distributions from PFICs and our proceeds from dispositions of PFIC stock during that year, and such income will nevertheless be subject to the Annual Distribution Requirement and will be taken into account for purposes of the 4% U.S. federal excise tax. In addition, under recently proposed regulations, income required to be included as a result of a QEF election would not be qualifying income for purposes of the 90% Income Test unless we receive a distribution of such income from the PFIC in the same taxable year to which the inclusion relates. We intend to limit and/or manage our holdings in PFICs to minimize our liability for any taxes and related interest charges.

Foreign exchange gains and losses realized by us in connection with certain transactions involving non-dollar debt securities, certain foreign currency futures contracts, foreign currency option contracts, foreign currency forward contracts, foreign currencies, or payables or receivables denominated in a foreign currency are subject to Code provisions that generally treat such gains and losses as ordinary income and losses and may affect the amount, timing and character of distributions to our stockholders. Any such transactions that are not directly related to our investment in securities (possibly including speculative currency positions or currency derivatives not used for hedging purposes) could, under future Treasury regulations, produce income not among the types of “qualifying income” from which a RIC must derive at least 90% of its annual gross income.

Taxation of U.S. Stockholders

Distributions by us generally are taxable to U.S. stockholders as ordinary income or capital gains. Distributions of our “investment company taxable income” (which is, generally, our net ordinary income plus realized net short-term capital gains in excess of realized net long-term capital losses) will be taxable as ordinary income to U.S. stockholders to the extent of our current or accumulated earnings and profits, whether paid in cash or reinvested in additional shares of our common stock. To the extent such distributions paid by us to non-corporate stockholders (including individuals) are attributable to dividends from U.S. corporations and certain qualified foreign corporations, such distributions (“Qualifying Dividends”) may be eligible for a maximum tax rate of 20%, provided holding period and other requirements are met at both the stockholder and company levels. In this regard, it is anticipated that distributions paid by us will generally not be attributable to dividends and, therefore, generally will not qualify for the 20% maximum rate applicable to Qualifying Dividends. Distributions of our net capital gains (which are generally our realized net long-term capital gains in excess of realized net short-term capital losses) properly reported by us as “capital gain dividends” in written statements furnished to our stockholders will be taxable to a U.S. stockholder as long-term capital gains that are currently taxable at a maximum rate of 20% in the case of individuals, trusts or estates, regardless of the U.S. stockholder’s holding period for his, her or its common stock and regardless of whether paid in cash or reinvested in additional common stock. Distributions in excess of our earnings and profits first will reduce a U.S. stockholder’s adjusted tax basis in such stockholder’s common stock and, after the adjusted basis is reduced to zero, will constitute capital gains to such U.S. stockholder.

We may retain some or all of our realized net long-term capital gains in excess of realized net short-term capital losses, but designate the retained net capital gain as a “deemed distribution.” In that case, among other consequences, we will pay tax on the retained amount, each U.S. stockholder will be required to include his, her or its share of the deemed distribution in income as if it had been actually distributed to the U.S. stockholder, and the U.S. stockholder will be entitled to claim a credit equal to his, her or its allocable share of the tax paid thereon by us. Because we expect to pay tax on any retained capital gains at our regular corporate tax rate, and because that rate is in excess of the maximum rate currently payable by individuals on

244


 
 

TABLE OF CONTENTS

long-term capital gains, the amount of tax that individual U.S. stockholders will be treated as having paid will exceed the tax they owe on the capital gain distribution and such excess generally may be refunded or claimed as a credit against the U.S. stockholder’s other U.S. federal income tax obligations or may be refunded to the extent it exceeds a stockholder’s liability for federal income tax. A stockholder that is not subject to federal income tax or otherwise required to file a federal income tax return would be required to file a federal income tax return on the appropriate form in order to claim a refund for the taxes we paid. The amount of the deemed distribution net of such tax will be added to the U.S. stockholder’s cost basis for his, her or its common stock. In order to utilize the deemed distribution approach, we must provide written notice to our stockholders prior to the expiration of 60 days after the close of the relevant taxable year. We cannot treat any of our investment company taxable income as a “deemed distribution.”

In accordance with certain applicable Treasury regulations and published guidance issued by the IRS, a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. If too many stockholders elect to receive cash, the cash available for distribution must be allocated among the shareholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, the lesser of (a) the portion of the distribution such shareholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. We have no current intention of paying dividends in shares of our stock in accordance with these Treasury regulations or published guidance.

For purposes of determining (1) whether the Annual Distribution Requirement is satisfied for any year and (2) the amount of the deduction for ordinary income and capital gain dividends paid for that year, we may, under certain circumstances, elect to treat a dividend that is paid during the following taxable year as if it had been paid during the taxable year in question. If we make such an election, the U.S. stockholder will still be treated as receiving the dividend in the taxable year in which the distribution is made. However, any dividend declared by us in October, November or December of any calendar year, payable to stockholders of record on a specified date in such a month and actually paid during January of the following year, will be treated as if it had been received by our U.S. stockholders on December 31 of the year in which the dividend was declared.

If an investor purchases shares of our common stock shortly before the record date of a distribution, the price of the shares will include the value of the distribution and the investor will be subject to tax on the distribution even though economically it may represent a return of his, her or its investment.

A U.S. stockholder generally will recognize taxable gain or loss if the U.S. stockholder sells or otherwise disposes of his, her or its shares of our common stock. The amount of gain or loss will be measured by the difference between such U.S. stockholder’s adjusted tax basis in the common stock sold and the amount of the proceeds received in exchange. Any gain arising from such sale or disposition generally will be treated as long-term capital gain or loss if the U.S. stockholder has held his, her or its shares for more than one year. Otherwise, it will be classified as short-term capital gain or loss. However, any capital loss arising from the sale or disposition of shares of our common stock held for six months or less will be treated as long-term capital loss to the extent of the amount of capital gain dividends received, or undistributed capital gain deemed received, with respect to such shares. In addition, all or a portion of any loss recognized upon a disposition of shares of our common stock may be disallowed if other shares of our common stock are purchased (whether through reinvestment of distributions or otherwise) within 30 days before or after the disposition. In such a case, the basis of the newly purchased shares will be adjusted to reflect the disallowed loss.

In general, U.S. stockholders taxed at individual rates currently are subject to a maximum U.S. federal income tax rate of 20% on their net capital gain (i.e., the excess of realized net long-term capital gains over realized net short-term capital losses), including any long-term capital gain derived from an investment in our shares. Such rate is lower than the maximum rate on ordinary income currently payable by such

245


 
 

TABLE OF CONTENTS

U.S. stockholders. In addition, individuals with modified adjusted gross incomes in excess of $200,000 ($250,000 in the case of married individuals filing jointly) and certain estates and trusts are subject to an additional 3.8% tax on their “net investment income,” which generally includes net income from interest, dividends, annuities, royalties, and rents, and net capital gains (other than certain amounts earned from trades or businesses). Corporate U.S. stockholders currently are subject to U.S. federal income tax on net capital gain at the maximum 35% rate also applied to ordinary income. Non-corporate U.S. stockholders with net capital losses for a year (i.e., capital losses in excess of capital gains) generally may deduct up to $3,000 of such losses against their ordinary income each year any net capital losses of a non-corporate U.S. stockholder in excess of $3,000 generally may be carried forward and used in subsequent years as provided in the Code. Corporate U.S. stockholders generally may not deduct any net capital losses for a year, but may carry back such losses for three years or carry forward such losses for five years.

We (or the applicable withholding agent) will send to each of our U.S. stockholders, as promptly as possible after the end of each calendar year, a notice reporting, on a per share and per distribution basis, the amounts includible in such U.S. stockholder’s taxable income for such year as ordinary income and as long-term capital gain. In addition, the federal tax status of each year’s distributions generally will be reported to the IRS (including the amount of dividends, if any, eligible for the 20% maximum rate). Dividends paid by us generally will not be eligible for the dividends-received deduction or the preferential tax rate applicable to Qualifying Dividends because our income generally will not consist of dividends. Distributions may also be subject to additional state, local and foreign taxes depending on a U.S. stockholder’s particular situation.

In some taxable years, we may be subject to the alternative minimum tax (“AMT”). If we have tax items that are treated differently for AMT purposes than for regular tax purposes, we may apportion those items between us and our stockholders, and this may affect our stockholder’s AMT liabilities. Although regulations explaining the precise method of apportionment have not yet been issued by the IRS, we may apportion these items in the same proportion that dividends paid to each stockholder bear to our taxable income (determined without regard to the dividends paid deduction), unless we determine that a different method for a particular item is warranted under the circumstances. You should consult your own tax advisor to determine how an investment in our stock could affect your AMT liability.

We may be required to withhold U.S. federal income tax (“backup withholding”) from all distributions to any U.S. stockholder (other than a stockholder that otherwise qualifies for an exemption) (1) who fails to furnish us with a correct taxpayer identification number or a certificate that such stockholder is exempt from backup withholding or (2) with respect to whom the IRS notifies us that such stockholder has failed to properly report certain interest and dividend income to the IRS and to respond to notices to that effect. An individual’s taxpayer identification number is his or her social security number. Any amount withheld under backup withholding is allowed as a credit against the U.S. stockholder’s federal income tax liability, provided that proper information is provided to the IRS.

U.S. stockholders that hold their common stock through foreign accounts or intermediaries will be subject to U.S. withholding tax at a rate of 30% on dividends and proceeds of sale of our common stock paid after December 31, 2018 if certain disclosure requirements related to U.S. accounts are not satisfied.

Dividend Reinvestment Plan.  We have adopted a dividend reinvestment plan through which all dividend distributions are paid to our stockholders in the form of additional shares of our common stock, unless a stockholder elects to receive cash in accordance with the terms of the plan. See “Dividend Reinvestment Plan”. Any distributions made to a U.S. stockholder that are reinvested under the plan will nevertheless remain taxable to the U.S. stockholder. The U.S. stockholder will have an adjusted tax basis in the additional shares of our common stock purchased through the plan equal to the amount of the reinvested distribution. The additional shares will have a new holding period commencing on the day following the day on which the shares are credited to the U.S. stockholder’s account.

Taxation of Non-U.S. Stockholders

Whether an investment in the shares is appropriate for a Non-U.S. stockholder will depend upon that person’s particular circumstances. An investment in the shares by a Non-U.S. stockholder may have adverse tax consequences. Non-U.S. stockholders should consult their tax advisers before investing in our common stock.

246


 
 

TABLE OF CONTENTS

Distributions of our “investment company taxable income” to Non-U.S. stockholders (including interest income and realized net short-term capital gains in excess of realized long-term capital losses, which generally would be free of withholding if paid to Non-U.S. stockholders directly) will be subject to withholding of federal tax at a 30% rate (or lower rate provided by an applicable treaty) to the extent of our current and accumulated earnings and profits unless an applicable exception applies. If the distributions are effectively connected with a U.S. trade or business of the Non-U.S. stockholder, we will not be required to withhold federal tax if the Non-U.S. stockholder complies with applicable certification and disclosure requirements, although the distributions will be subject to U.S. federal income tax at the rates applicable to U.S. persons. (Special certification requirements apply to a Non-U.S. stockholder that is a foreign partnership or a foreign trust, and such entities are urged to consult their own tax advisers).

However, no withholding is required with respect to certain distributions if (i) the distributions are properly reported to our stockholders as “interest-related dividends” or “short-term capital gain dividends” in written statements to our stockholders, (ii) the distributions are derived from sources specified in the Code for such dividends and (iii) certain other requirements are satisfied. Currently, we do not anticipate that any significant amount of our distributions would be reported as eligible for this exemption from withholding.

or deemed distributions of our net capital gains to a Non-U.S. stockholder, and gains realized by a Non-U.S. stockholder upon the sale of our common stock, will not be subject to federal withholding tax and generally will not be subject to federal income tax unless the distributions or gains, as the case may be, are effectively connected with a U.S. trade or business of the Non-U.S. stockholder.

The tax consequences to Non-U.S. stockholders entitled to claim the benefits of an applicable tax treaty or who are individuals present in the United States for 183 days or more during a taxable year may be different from those described herein. Non-U.S. stockholders are urged to consult their tax advisers with respect to the procedure for claiming the benefit of a lower treaty rate and the applicability of foreign taxes.

If we distribute our net capital gains in the form of deemed rather than actual distributions, a Non-U.S. stockholder will be entitled to a U.S. federal income tax credit or tax refund equal to the stockholder’s allocable share of the tax we pay on the capital gains deemed to have been distributed. In order to obtain the refund, the Non-U.S. stockholder must obtain a U.S. taxpayer identification number and file a U.S. federal income tax return even if the Non-U.S. stockholder would not otherwise be required to obtain a U.S. taxpayer identification number or file a U.S. federal income tax return. For a corporate Non-U.S. stockholder, distributions (both actual and deemed), and gains realized upon the sale of our common stock that are effectively connected to a U.S. trade or business may, under certain circumstances, be subject to an additional “branch profits tax” at a 30% rate (or at a lower rate if provided for by an applicable treaty). Accordingly, investment in the shares may not be appropriate for a Non-U.S. stockholder.

A Non-U.S. stockholder who is a non-resident alien individual, and who is otherwise subject to withholding of federal tax, may be subject to information reporting and backup withholding of U.S. federal income tax on dividends unless the Non-U.S. stockholder provides us or the dividend paying agent with an IRS Form W-8BEN or Form W-8BEN-E (or an acceptable substitute form) or otherwise meets documentary evidence requirements for establishing that it is a Non-U.S. stockholder or otherwise establishes an exemption from backup withholding.

Legislation commonly referred to as “FATCA” generally imposes a 30% withholding tax on payments of certain types of income to foreign financial institutions that either fail to enter into an agreement with the U.S. Treasury to report certain required information with respect to accounts held by U.S. persons (or held by foreign entities that have U.S. persons as substantial owners), or that reside in countries that have not entered into inter-gorvernmental agreements with the U.S. to provide such information. The types of income subject to the tax include U.S. source interest and dividends and the gross proceeds from the sale of any property that could produce U.S.-source interest or dividends paid after December 31, 2018. The information required to be reported includes the identity and taxpayer identification number of each account holder that is a U.S. person and transaction activity within the holder’s account. In addition, subject to certain exceptions, FATCA also imposes a 30% withholding on payments to foreign entities that are not financial institutions unless the foreign entity certifies that it does not have a greater than 10% U.S. owner or provides the withholding agent with identifying information on each greater than 10% U.S. owner. When these provisions become effective,

247


 
 

TABLE OF CONTENTS

depending on the status of a Non-U.S. Holder and the status of the intermediaries through which they hold their shares, Non-U.S. Holders could be subject to this 30% withholding tax with respect to distributions on their shares and proceeds from the sale of their shares. Under certain circumstances, a Non-U.S. Holder might be eligible for refunds or credits of such taxes.

Non-U.S. persons should consult their own tax advisers with respect to the U.S. federal income tax and withholding tax, and state, local and foreign tax consequences of an investment in the shares.

Failure to Qualify as a Regulated Investment Company

If we fail to satisfy the 90% Income Test or the Diversification Tests for any taxable year, we may nevertheless continue to qualify as a RIC for such year if certain relief provisions are applicable (which may, among other things, require us to pay certain corporate-level federal taxes or to dispose of certain assets).

If we were unable to qualify for treatment as a RIC and the foregoing relief provisions are not applicable, we would be subject to tax on all of our taxable income at regular corporate rates, regardless of whether we make any distributions to our stockholders. Distributions would not be required, and any distributions would be taxable to our stockholders as ordinary dividend income to the extent of our current and accumulated earnings and profits and, subject to certain limitations, may be eligible for the 20% maximum rate for non-corporate taxpayers provided certain holding period and other requirements were met. Subject to certain limitations under the Code, corporate distributees would be eligible for the dividends-received deduction. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s tax basis, and any remaining distributions would be treated as a capital gain. Generally, a non-taxable return of capital will reduce an investor’s basis in our stock for federal tax purposes, which will result in higher tax liability when the stock is sold. Stockholders should read any written disclosure accompanying a distribution carefully and should not assume that the source of any distribution is our ordinary income or gains. Certain such written disclosures will present a calculation of return of capital on a tax accounting basis. To requalify as a RIC in a subsequent taxable year, we would be required to satisfy the RIC qualification requirements for that year and dispose of any earnings and profits from any year in which we failed to qualify as a RIC. Subject to a limited exception applicable to RICs that qualified as such under Subchapter M of the Code for at least one year prior to disqualification and that requalify as a RIC no later than the second year following the non-qualifying year, we could be subject to tax on any unrealized net built-in gains in the assets held by us during the period in which we failed to qualify as a RIC that are recognized within the subsequent 5 years, unless we made a special election to pay corporate-level tax on such built-in gain at the time of our requalification as a RIC.

248


 
 

TABLE OF CONTENTS

DESCRIPTION OF OUR CAPITAL STOCK

The following description is based on relevant portions of the Maryland General Corporation Law and on our charter and bylaws. This summary is not necessarily complete, and we refer you to Maryland Law and our charter and bylaws for a more detailed description of the provisions summarized below.

Stock

Our authorized stock consists of 200,000,000 shares of stock, par value $0.02 per share, all of which are initially designated as common stock. Our common stock is traded on the Nasdaq Global Market under the ticker symbol “NEWT.” Under Maryland law, our stockholders generally are not personally liable for our debts or obligations.

The following are our outstanding classes of securities as of August 21, 2017:

     
(1)
Title of Class
  (2)
Amount
Authorized
  (3)
Amount Held
by Us or for
Our Account
  (4)
Amount
Outstanding
Exclusive of
Amounts Shown
Under (3)
Common stock, par value $0.02 per share     200,000,000             17,401,048 (1) 

(1) An equity compensation plan has been adopted to cover up to 3,000,000 shares, but no options have been awarded.

Under our charter, our board of directors is authorized to classify and reclassify any unissued shares of stock into other classes or series of stock without obtaining stockholder approval. Our charter also provides that the board of directors, without any action by our stockholders, may amend the charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we have authority to issue.

Common Stock

All shares of our common stock have equal rights as to earnings, assets, voting, and distributions and, when they are issued, will be duly authorized, validly issued, fully paid and non-assessable. Distributions may be paid to the holders of our common stock if, as and when authorized by our board of directors and declared by us out of assets legally available therefor. Shares of our common stock have no preemptive, conversion or redemption rights and are freely transferable, except where their transfer is restricted by federal and state securities laws or by contract. In the event of our liquidation, dissolution or winding up, each share of our common stock would be entitled to share ratably in all of our assets that are legally available for distribution after we pay all debts and other liabilities and subject to any preferential rights of holders of our preferred stock, if any preferred stock is outstanding at such time. Each share of our common stock is entitled to one vote on all matters submitted to a vote of stockholders, including the election of directors. Except as provided with respect to any other class or series of stock, the holders of our common stock will possess exclusive voting power. There is no cumulative voting in the election of directors, which means that holders of a majority of the outstanding shares of common stock can elect all of our directors, and holders of less than a majority of such shares will be unable to elect any director.

Preferred Stock

Our charter authorizes our board of directors to classify and reclassify any unissued shares of stock into other classes or series of stock, including preferred stock. The cost of any such reclassification would be borne by our existing common stockholders. Prior to issuance of shares of each class or series, the board of directors is required by Maryland law and by our charter to set the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms or conditions of redemption for each class or series. Thus, the board of directors could authorize the issuance of shares of preferred stock with terms and conditions which could have the effect of delaying, deferring or preventing a transaction or a change in control that might involve a premium price for holders of our common stock or otherwise be in their best interest. You should note, however, that any issuance of preferred stock must comply with the requirements of the 1940 Act. The 1940 Act requires, among other things, that (1) immediately after issuance

249


 
 

TABLE OF CONTENTS

and before any distribution is made with respect to our common stock and before any purchase of common stock is made, such preferred stock together with all other senior securities must not exceed an amount equal to 50% of our gross assets after deducting the amount of such distribution or purchase price, as the case may be, and (2) the holders of shares of preferred stock, if any are issued, must be entitled as a class to elect two directors at all times and to elect a majority of the directors if distributions on such preferred stock are in arrears by two full years or more. Certain matters under the 1940 Act require the separate vote of the holders of any issued and outstanding preferred stock. We believe that the availability for issuance of preferred stock will provide us with increased flexibility in structuring future financings and acquisitions. However, we do not currently have any plans to issue preferred stock.

Options and Restricted Stock

From time to time, at the discretion of the Compensation, Corporate Governance and Nominating Committee, the Company intends to grant stock options to the named executive officers and other employees to create a clear and strong alignment between compensation and stockholder return and to enable the named executive officers and other employees to develop and maintain a stock ownership position in the company that will vest over time and act as an incentive for the employee to remain with the Company. Stock options may be granted pursuant to the Newtek Business Services Corp. 2014 Plan. See “Executive Compensation —  Equity-Based Compensation” for a description of equity-based compensation.

On May 10, 2016, the SEC issued order for exemptive relief that, with the shareholders’ approval we received on July 27, 2016, allows us to take certain actions that would otherwise be prohibited by the 1940 Act, as applicable to business development companies. Specifically, the SEC order permits us to (i) issue restricted stock awards to our officers, employees and directors and (ii) issue stock options to our non-employee directors.

We also may in the future request exemptive relief to permit us to grant dividend equivalent right to our option holders. However, there is no assurance that we will receive any such exemptive relief.

Limitation on Liability of Directors and Officers; Indemnification and Advance of Expenses

Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material to the cause of action. Our charter contains such a provision which eliminates directors’ and officers’ liability to the maximum extent permitted by Maryland law, subject to the requirements of the 1940 Act.

Our charter authorizes us, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as our director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee, from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in such capacity and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding. Our bylaws obligate us, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as our director or officer and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee and who is made, or threatened to be made, a party to the proceeding by reason of his or her service in that capacity from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in any such capacity and to pay or reimburse his or her reasonable expenses in advance of final disposition of a proceeding. The charter and bylaws also permit us to indemnify and advance expenses to any person who served a predecessor of us in any of the capacities described above and any of our employees or agents or any employees or agents of our predecessor. In accordance with the 1940 Act, we will not indemnify any person for any liability to which such person would be subject by reason of such person’s willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.

250


 
 

TABLE OF CONTENTS

Maryland law requires a corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful in the defense of any proceeding to which he or she is made, or threatened to be made, a party by reason of his or her service in that capacity. Maryland law permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made a party by reason of their service in those or other capacities unless it is established that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (1) was committed in bad faith or (2) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper personal benefit in money, property or services or (c) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, under Maryland law, a Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that a personal benefit was improperly received unless, in either case, a court orders indemnification, and then only for expenses. In addition, Maryland law permits a corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt of (a) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation and (b) a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the standard of conduct was not met.

Certain Provisions of the Maryland General Corporation Law and Our Charter and Bylaws

The Maryland General Corporation Law and our charter and bylaws contain provisions that could make it more difficult for a potential acquirer to acquire us by means of a tender offer, proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because, among other things, the negotiation of such proposals may improve their terms.

Classified Board of Directors

Our board of directors is divided into three classes of directors serving staggered three-year terms. The first expires in 2018, the second class expires in 2019, and the third class expires in 2020. Upon expiration of their current terms, directors of each class will be elected to serve for three-year terms and until their successors are duly elected and qualify and each year one class of directors will be elected by the stockholders. A classified board may render a change in control of us or removal of our incumbent management more difficult. We believe, however, that the longer time required to elect a majority of a classified board of directors will help to ensure the continuity and stability of our management and policies.

Election of Directors

Our charter and bylaws provide that the affirmative vote of the holders of a plurality of the outstanding shares of stock entitled to vote in the election of directors cast at a meeting of stockholders duly called and at which a quorum is present will be required to elect a director. Pursuant to our charter our board of directors may amend the bylaws to alter the vote required to elect directors.

Number of Directors; Vacancies; Removal

Our charter provides that the number of directors will be set only by the board of directors in accordance with our bylaws. Our bylaws provide that a majority of our entire board of directors may at any time increase or decrease the number of directors. However, unless our bylaws are amended, the number of directors may never be less than one nor more than twelve. Our charter provides that, at such time as we have at least three independent directors and our common stock is registered under the Securities Exchange Act of 1934, as amended, we elect to be subject to the provision of Subtitle 8 of Title 3 of the Maryland General Corporation Law regarding the filling of vacancies on the board of directors. Accordingly, at such time, except as may be provided by the board of directors in setting the terms of any class or series of preferred stock, any and all vacancies on the board of directors may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy will serve for the remainder of the full term of the directorship in which the vacancy occurred and until a successor is elected and qualifies, subject to any applicable requirements of the 1940 Act.

251


 
 

TABLE OF CONTENTS

Our charter provides that a director may be removed only for cause, as defined in our charter, and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast in the election of directors.

Action by Stockholders

Under the Maryland General Corporation Law, stockholder action can be taken only at an annual or special meeting of stockholders or (unless the charter provides for stockholder action by less than unanimous written consent, which our charter does not) by unanimous written consent in lieu of a meeting. These provisions, combined with the requirements of our bylaws regarding the calling of a stockholder-requested special meeting of stockholders discussed below, may have the effect of delaying consideration of a stockholder proposal until the next annual meeting.

Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals

Our bylaws provide that with respect to an annual meeting of stockholders, nominations of persons for election to the board of directors and the proposal of business to be considered by stockholders may be made only (a) pursuant to our notice of the meeting, (b) by the board of directors or (c) by a stockholder who is entitled to vote at the meeting and who has complied with the advance notice procedures of our bylaws. With respect to special meetings of stockholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of persons for election to the board of directors at a special meeting may be made only (1) pursuant to our notice of the meeting, (2) by the board of directors or (3) provided that the board of directors has determined that directors will be elected at the meeting, by a stockholder who is entitled to vote at the meeting and who has complied with the advance notice provisions of the bylaws.

The purpose of requiring stockholders to give us advance notice of nominations and other business is to afford our board of directors a meaningful opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by our board of directors, to inform stockholders and make recommendations about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of stockholders. Although our bylaws do not give our board of directors any power to disapprove stockholder nominations for the election of directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of directors or the consideration of stockholder proposals if proper procedures are not followed and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal without regard to whether consideration of such nominees or proposals might be harmful or beneficial to us and our stockholders.

Calling of Special Meetings of Stockholders

Our bylaws provide that special meetings of stockholders may be called by our board of directors and certain of our officers. Additionally, our bylaws provide that, subject to the satisfaction of certain procedural and informational requirements by the stockholders requesting the meeting, a special meeting of stockholders will be called by the secretary of the corporation upon the written request of stockholders entitled to cast not less than a majority of all the votes entitled to be cast at such meeting.

Approval of Extraordinary Corporate Action; Amendment of Charter and Bylaws

Under Maryland law, a Maryland corporation generally cannot dissolve, amend its charter, merge, sell all or substantially all of its assets, engage in a share exchange or engage in similar transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter. However, a Maryland corporation may provide in its charter for approval of these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our charter generally provides for approval of charter amendments and extraordinary transactions by the stockholders entitled to cast at least a majority of the votes entitled to be cast on the matter. Our charter also provides that certain charter amendments, any proposal for our conversion, whether by charter amendment, merger or otherwise, from a closed-end company to an open-end company and any proposal for our liquidation or dissolution requires the approval of the stockholders entitled to cast at least a majority of the votes entitled to be cast on such matter. However, if such amendment or proposal is approved by a majority of our continuing directors (in addition to approval by our board of directors), such

252


 
 

TABLE OF CONTENTS

amendment or proposal may be approved by a majority of the votes entitled to be cast on such a matter. The “continuing directors” are defined in our charter as (1) our current directors, (2) those directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of our current directors then on the board of directors or (3) any successor directors whose nomination for election by the stockholders or whose election by the directors to fill vacancies is approved by a majority of continuing directors or the successor continuing directors then in office. In any event, in accordance with the requirements of the 1940 Act, any amendment or proposal that would have the effect of changing the nature of our business so as to cause us to cease to be, or to withdraw our election as, a BDC would be required to be approved by a majority of our outstanding voting securities, as defined under the 1940 Act.

Our charter and bylaws provide that the board of directors will have the exclusive power to make, alter, amend or repeal any provision of our bylaws.

No Appraisal Rights

Except with respect to appraisal rights arising in connection with the Control Share Act discussed below, as permitted by the Maryland General Corporation Law, our charter provides that stockholders will not be entitled to exercise appraisal rights unless a majority of the board of directors shall determine such rights apply.

Control Share Acquisitions

The Maryland General Corporation Law provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter (the “Control Share Act”). Shares owned by the acquirer, by officers or by directors who are employees of the corporation are excluded from shares entitled to vote on the matter. Control shares are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the acquirer is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power:

one-tenth or more but less than one-third;
one-third or more but less than a majority; or
a majority or more of all voting power.

The requisite stockholder approval must be obtained each time an acquirer crosses one of the thresholds of voting power set forth above. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A control share acquisition means the acquisition of control shares, subject to certain exceptions.

A person who has made or proposes to make a control share acquisition may compel the board of directors of the corporation to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction of certain conditions, including an undertaking to pay the expenses of the meeting. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.

If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then the corporation may redeem for fair value any or all of the control shares, except those for which voting rights have previously been approved. The right of the corporation to redeem control shares is subject to certain conditions and limitations, including compliance with the 1940 Act. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition by the acquirer or of any meeting of stockholders at which the voting rights of the shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of appraisal rights may not be less than the highest price per share paid by the acquirer in the control share acquisition.

253


 
 

TABLE OF CONTENTS

The Control Share Act does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. Our bylaws contain a provision exempting from the Control Share Act any and all acquisitions by any person of our shares of stock. There can be no assurance that such provision will not be amended or eliminated at any time in the future. However, the SEC staff has taken the position that, under the 1940 Act, an investment company may not avail itself of the Control Share Act. As a result, we will amend our bylaws to be subject to the Control Share Act only if the board of directors determines that it would be in our best interests and, after notification, the SEC staff does not object to our determination that our being subject to the Control Share Act does not conflict with the 1940 Act.

Business Combinations

Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder (the “Business Combination Act”). These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

any person who beneficially owns 10% or more of the voting power of the corporation’s outstanding voting stock; or
an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation.

A person is not an interested stockholder under this statute if the board of directors approved in advance the transaction by which the stockholder otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board.

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:

80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and
two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.

The statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors before the time that the interested stockholder becomes an interested stockholder. Our board of directors has adopted a resolution that any business combination between us and any other person is exempted from the provisions of the Business Combination Act, provided that the business combination is first approved by the board of directors, including a majority of the directors who are not interested persons as defined in the 1940 Act. This resolution may be altered or repealed in whole or in part at any time; however, our board of directors will adopt resolutions so as to make us subject to the provisions of the Business Combination Act only if the board of directors determines that it would be in our best interests and if the SEC staff does not object to our determination that our being subject to the Business Combination Act does not conflict with the 1940 Act. If this resolution is repealed, or the board of directors does not otherwise approve a business combination, the statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.

254


 
 

TABLE OF CONTENTS

Conflict with 1940 Act

Our bylaws provide that, if and to the extent that any provision of the Maryland General Corporation Law, including the Control Share Act (if we amend our bylaws to be subject to such Act) and the Business Combination Act, or any provision of our charter or bylaws conflicts with any provision of the 1940 Act, the applicable provision of the 1940 Act will control.

255


 
 

TABLE OF CONTENTS

DESCRIPTION OF OUR PREFERRED STOCK

In addition to shares of common stock, our charter authorizes the issuance of preferred stock. We may issue preferred stock from time to time, although we have no immediate intention to do so. If we offer preferred stock under this prospectus, we will issue an appropriate prospectus supplement. We may issue preferred stock from time to time in one or more classes or series, without stockholder approval. Prior to issuance of shares of each class or series, our board of directors is required by Maryland law and by our charter to set the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption for each class or series. Any such an issuance must adhere to the requirements of the 1940 Act, Maryland law and any other limitations imposed by law.

The following is a general description of the terms of the preferred stock we may issue from time to time. Particular terms of any preferred stock we offer will be described in the prospectus supplement relating to such preferred stock.

If we issue preferred stock, it will pay dividends to the holders of the preferred stock at either a fixed rate or a rate that will be reset frequently based on short-term interest rates, as described in a prospectus supplement accompanying each preferred share offering.

The 1940 Act requires, among other things, that (1) immediately after issuance and before any distribution is made with respect to common stock, the liquidation preference of the preferred stock, together with all other senior securities, must not exceed an amount equal to 50% of our total assets (taking into account such distribution), (2) the holders of shares of preferred stock, if any are issued, must be entitled as a class to elect two directors at all times and to elect a majority of the directors if dividends on the preferred stock are in arrears by two years or more and (3) such shares be cumulative as to dividends and have a complete preference over our common stock to payment of their liquidation preference in the event of a dissolution.

For any series of preferred stock that we may issue, our board of directors will determine and the articles supplementary and prospectus supplement relating to such series will describe:

the designation and number of shares of such series;
the rate, whether fixed or variable, and time at which any dividends will be paid on shares of such series, as well as whether such dividends are participating or non-participating;
any provisions relating to convertibility or exchangeability of the shares of such series;
the rights and preferences, if any, of holders of shares of such series upon our liquidation, dissolution or winding up of our affairs;
the voting powers, if any, of the holders of shares of such series;
any provisions relating to the redemption of the shares of such series;
any limitations on our ability to pay dividends or make distributions on, or acquire or redeem, other securities while shares of such series are outstanding;
any conditions or restrictions on our ability to issue additional shares of such series or other securities;
if applicable, a discussion of certain U.S. federal income tax considerations; and
any other relative powers, preferences and participating, optional or special rights of shares of such series, and the qualifications, limitations or restrictions thereof.

All shares of preferred stock that we may issue will be identical and of equal rank except as to the particular terms thereof that may be fixed by our board of directors, and all shares of each series of preferred stock will be identical and of equal rank except as to the dates from which dividends, if any, thereon will be cumulative.

256


 
 

TABLE OF CONTENTS

DESCRIPTION OF OUR SUBSCRIPTION RIGHTS

General

We may issue subscription rights to our stockholders to purchase common stock. Subscription rights may be issued independently or together with any other offered security and may or may not be transferable by the person purchasing or receiving the subscription rights. In connection with a subscription rights offering to our stockholders, we would distribute certificates evidencing the subscription rights and a prospectus supplement to our stockholders on the record date that we set for receiving subscription rights in such subscription rights offering.

The applicable prospectus supplement would describe the following terms of subscription rights in respect of which this prospectus is being delivered:

the period of time the offering would remain open (which shall be open a minimum number of days such that all record holders would be eligible to participate in the offering and shall not be open longer than 120 days);
the title of such subscription rights;
the exercise price for such subscription rights (or method of calculation thereof);
the ratio of the offering (which, in the case of transferable rights, will require a minimum of three shares to be held of record before a person is entitled to purchase an additional share);
the number of such subscription rights issued to each stockholder;
the extent to which such subscription rights are transferable and the market on which they may be traded if they are transferable;
if applicable, a discussion of certain U.S. federal income tax considerations applicable to the issuance or exercise of such subscription rights;
the date on which the right to exercise such subscription rights shall commence, and the date on which such right shall expire (subject to any extension);
the extent to which such subscription rights include an over-subscription privilege with respect to unsubscribed securities and the terms of such over-subscription privilege;
any termination right we may have in connection with such subscription rights offering; and
any other terms of such subscription rights, including exercise, settlement and other procedures and limitations relating to the transfer and exercise of such subscription rights.

Exercise Of Subscription Rights

Each subscription right would entitle the holder of the subscription right to purchase for cash such amount of shares of common stock at such exercise price as shall in each case be set forth in, or be determinable as set forth in, the prospectus supplement relating to the subscription rights offered thereby. Subscription rights may be exercised at any time up to the close of business on the expiration date for such subscription rights set forth in the prospectus supplement. After the close of business on the expiration date, all unexercised subscription rights would become void.

Subscription rights may be exercised as set forth in the prospectus supplement relating to the subscription rights offered thereby. Upon receipt of payment and the subscription rights certificate properly completed and duly executed at the corporate trust office of the subscription rights agent or any other office indicated in the prospectus supplement we will forward, as soon as practicable, the shares of common stock purchasable upon such exercise. To the extent permissible under applicable law, we may determine to offer any unsubscribed offered securities directly to persons other than stockholders, to or through agents, underwriters or dealers or through a combination of such methods, as set forth in the applicable prospectus supplement.

257


 
 

TABLE OF CONTENTS

Dilutive Effects

Any stockholder who chooses not to participate in a rights offering should expect to own a smaller interest in the Company upon completion of such rights offering. Any rights offering will dilute the ownership interest and voting power of stockholders who do not fully exercise their subscription rights. Further, because the net proceeds per share from any rights offering may be lower than our then current net asset value per share, the rights offering may reduce our net asset value per share. The amount of dilution that a stockholder will experience could be substantial, particularly to the extent we engage in multiple rights offerings within a limited time period. In addition, the market price of our common stock could be adversely affected while a rights offering is ongoing as a result of the possibility that a significant number of additional shares may be issued upon completion of such rights offering. All of our stockholders will also indirectly bear the expenses associated with any rights offering we may conduct, regardless of whether they elect to exercise any rights.

258


 
 

TABLE OF CONTENTS

DESCRIPTION OF OUR WARRANTS

The following is a general description of the terms of the warrants we may issue from time to time. Particular terms of any warrants we offer will be described in the prospectus supplement relating to such warrants.

We may issue warrants to purchase shares of our common stock. Such warrants may be issued independently or together with shares of common stock and may be attached or separate from such shares of common stock. We will issue each series of warrants under a separate warrant agreement to be entered into between us and a warrant agent. The warrant agent will act solely as our agent and will not assume any obligation or relationship of agency for or with holders or beneficial owners of warrants.

A prospectus supplement will describe the particular terms of any series of warrants we may issue, including the following:

the title of such warrants;
the aggregate number of such warrants;
the price or prices at which such warrants will be issued;
the currency or currencies, including composite currencies, in which the price of such warrants may be payable;
the number of shares of common stock issuable upon exercise of such warrants;
the price at which and the currency or currencies, including composite currencies, in which the shares of common stock purchasable upon exercise of such warrants may be purchased;
the date on which the right to exercise such warrants shall commence and the date on which such right will expire;
whether such warrants will be issued in registered form or bearer form;
if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time;
if applicable, the number of such warrants issued with each share of common stock;
if applicable, the date on and after which such warrants and the related shares of common stock will be separately transferable;
information with respect to book-entry procedures, if any;
if applicable, a discussion of certain U.S. federal income tax considerations; and
any other terms of such warrants, including terms, procedures and limitations relating to the exchange and exercise of such warrants.

The Company and the warrant agent may amend or supplement the warrant agreement for a series of warrants without the consent of the holders of the warrants issued thereunder to effect changes that are not inconsistent with the provisions of the warrants and that do not materially and adversely affect the interests of the holders of the warrants.

Under the 1940 Act, we may generally only offer warrants provided that (1) the warrants expire by their terms within ten years; (2) the exercise or conversion price is not less than the current market value at the date of issuance; (3) our stockholders authorize the proposal to issue such warrants, and our board of directors approves such issuance on the basis that the issuance is in the best interests of the Company and its stockholders; and (4) if the warrants are accompanied by other securities, the warrants are not separately transferable unless no class of such warrants and the securities accompanying them has been publicly distributed. The 1940 Act also provides that the amount of our voting securities that would result from the exercise of all outstanding warrants at the time of issuance may not exceed 25.0% of our outstanding voting securities.

259


 
 

TABLE OF CONTENTS

DESCRIPTION OF OUR DEBT SECURITIES

We may issue debt securities in one or more series. The specific terms of each series of debt securities will be described in the particular prospectus supplement relating to that series. The prospectus supplement may or may not modify the general terms found in this prospectus and will be filed with the SEC. For a complete description of the terms of a particular series of debt securities, you should read both this prospectus and the prospectus supplement relating to that particular series.

As required by federal law for all bonds and notes of companies that are publicly offered, the debt securities are governed by a document called an “indenture.” An indenture is a contract between us and the financial institution acting as trustee on your behalf, and is subject to and governed by the Trust Indenture Act of 1939, as amended. The trustee has two main roles. First, the trustee can enforce your rights against us if we default. There are some limitations on the extent to which the trustee acts on your behalf, described in the second paragraph under “— Events of Default — Remedies if an Event of Default Occurs.” Second, the trustee performs certain administrative duties for us with respect to the debt securities.

This section includes a description of the material provisions of the indenture. Because this section is a summary, however, it does not describe every aspect of the debt securities and the indenture. We urge you to read the indenture because it, and not this description, defines your rights as a holder of debt securities. A copy of the form of indenture is attached as an exhibit to the registration statement of which this prospectus is a part. We will file a supplemental indenture with the SEC in connection with any debt offering, at which time the supplemental indenture would be publicly available. See “Available Information” for information on how to obtain a copy of the indenture.

The prospectus supplement, which will accompany this prospectus, will describe the particular series of debt securities being offered by including:

the designation or title of the series of debt securities;
the total principal amount of the series of debt securities;
the percentage of the principal amount at which the series of debt securities will be offered;
the date or dates on which principal will be payable;
the rate or rates (which may be either fixed or variable) and/or the method of determining such rate or rates of interest, if any;
the date or dates from which any interest will accrue, or the method of determining such date or dates, and the date or dates on which any interest will be payable;
whether any interest may be paid by issuing additional securities of the same series in lieu of cash (and the terms upon which any such interest may be paid by issuing additional securities);
the terms for redemption, extension or early repayment, if any;
the currencies in which the series of debt securities are issued and payable;
whether the amount of payments of principal, premium or interest, if any, on a series of debt securities will be determined with reference to an index, formula or other method (which could be based on one or more currencies, commodities, equity indices or other indices) and how these amounts will be determined;
the place or places, if any, other than or in addition to the Borough of Manhattan in the City of New York, of payment, transfer, conversion and/or exchange of the debt securities;
the denominations in which the offered debt securities will be issued (if other than $1,000 and any integral multiple thereof);
the provision for any sinking fund;
any restrictive covenants;
any Events of Default (as defined in “Events of Default” below);

260


 
 

TABLE OF CONTENTS

whether the series of debt securities are issuable in certificated form;
any provisions for defeasance or covenant defeasance;
any special federal income tax implications, including, if applicable, federal income tax considerations relating to original issue discount;
whether and under what circumstances we will pay additional amounts in respect of any tax, assessment or governmental charge and, if so, whether we will have the option to redeem the debt securities rather than pay the additional amounts (and the terms of this option);
any provisions for convertibility or exchangeability of the debt securities into or for any other securities;
whether the debt securities are subject to subordination and the terms of such subordination;
whether the debt securities are secured and the terms of any security interest;
the listing, if any, on a securities exchange; and
any other terms. The debt securities may be secured or unsecured obligations. Under the provisions of the 1940 Act, we, as a BDC, are permitted to issue debt only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after each issuance of debt, but giving effect to any exemptive relief granted to us by the SEC. Unless the prospectus supplement states otherwise, principal (and premium, if any) and interest, if any, will be paid by us in immediately available funds.

General

The indenture provides that any debt securities proposed to be sold under this prospectus and the accompanying prospectus supplement (“offered debt securities”) may be issued under the indenture in one or more series.

For purposes of this prospectus, any reference to the payment of principal of, or premium or interest, if any, on, debt securities will include additional amounts if required by the terms of the debt securities.

The indenture does not limit the amount of debt securities that may be issued thereunder from time to time. Debt securities issued under the indenture, when a single trustee is acting for all debt securities issued under the indenture, are called the “indenture securities.” The indenture also provides that there may be more than one trustee thereunder, each with respect to one or more different series of indenture securities. See “— Resignation of Trustee” below. At a time when two or more trustees are acting under the indenture, each with respect to only certain series, the term “indenture securities” means the one or more series of debt securities with respect to which each respective trustee is acting. In the event that there is more than one trustee under the indenture, the powers and trust obligations of each trustee described in this prospectus will extend only to the one or more series of indenture securities for which it is trustee. If two or more trustees are acting under the indenture, then the indenture securities for which each trustee is acting would be treated as if issued under separate indentures.

Except as described under “— Events of Default” and “— Merger or Consolidation” below, the indenture does not contain any provisions that give you protection in the event we issue a large amount of debt or we are acquired by another entity.

We refer you to the prospectus supplement for information with respect to any deletions from, modifications of or additions to the Events of Default or our covenants, as applicable, that are described below, including any addition of a covenant or other provision providing event risk protection or similar protection.

We have the ability to issue indenture securities with terms different from those of indenture securities previously issued and, without the consent of the holders thereof, to reopen a previous issue of a series of indenture securities and issue additional indenture securities of that series unless the reopening was restricted when that series was created.

261


 
 

TABLE OF CONTENTS

No person from whom we borrow will, in its capacity as either a lender or debt security holder, have either a veto power or a vote in approving or changing any of our operating policies or investment strategies, as applicable.

Conversion and Exchange

If any debt securities are convertible into or exchangeable for other securities, the prospectus supplement will explain the terms and conditions of the conversion or exchange, including the conversion price or exchange ratio (or the calculation method), the conversion or exchange period (or how the period will be determined), if conversion or exchange will be mandatory or at the option of the holder or us, provisions for adjusting the conversion price or the exchange ratio, and provisions affecting conversion or exchange in the event of the redemption of the underlying debt securities. These terms may also include provisions under which the number or amount of other securities to be received by the holders of the debt securities upon conversion or exchange would be calculated according to the market price of the other securities as of a time stated in the prospectus supplement.

Issuance of Securities in Registered Form

We may issue the debt securities in registered form, in which case we may issue them either in book-entry form only or in “certificated” form. Debt securities issued in book-entry form will be represented by global securities. We expect that we will usually issue debt securities in book-entry only form represented by global securities.

Book-Entry Holders

We will issue registered debt securities in book-entry form only, unless we specify otherwise in the applicable prospectus supplement. This means debt securities will be represented by one or more global securities registered in the name of a depositary that will hold them on behalf of financial institutions that participate in the depositary’s book-entry system. These participating institutions, in turn, hold beneficial interests in the debt securities held by the depositary or its nominee. These institutions may hold these interests on behalf of themselves or customers.

Under the indenture, only the person in whose name a debt security is registered is recognized as the holder of that debt security. Consequently, for debt securities issued in book-entry form, we will recognize only the depositary as the holder of the debt securities and we will make all payments on the debt securities to the depositary. The depositary will then pass along the payments it receives to its participants, which in turn will pass the payments along to their customers who are the beneficial owners. The depositary and its participants do so under agreements they have made with one another or with their customers; they are not obligated to do so under the terms of the debt securities.

As a result, investors will not own debt securities directly. Instead, they will own beneficial interests in a global security, through a bank, broker or other financial institution that participates in the depositary’s book-entry system or holds an interest through a participant. As long as the debt securities are represented by one or more global securities, investors will be indirect holders, and not holders, of the debt securities.

Street Name Holders

In the future, we may issue debt securities in certificated form or terminate a global security. In these cases, investors may choose to hold their debt securities in their own names or in “street name.” Debt securities held in street name are registered in the name of a bank, broker or other financial institution chosen by the investor, and the investor would hold a beneficial interest in those debt securities through the account he or she maintains at that institution.

For debt securities held in street name, we will recognize only the intermediary banks, brokers and other financial institutions in whose names the debt securities are registered as the holders of those debt securities, and we will make all payments on those debt securities to them. These institutions will pass along the payments they receive to their customers who are the beneficial owners, but only because they agree to do so in their customer agreements or because they are legally required to do so. Investors who hold debt securities in street name will be indirect holders, and not holders, of the debt securities.

262


 
 

TABLE OF CONTENTS

Legal Holders

Our obligations as well as the obligations of the applicable trustee and those of any third parties employed by us or the applicable trustee, run only to the legal holders of the debt securities. We do not have obligations to investors who hold beneficial interests in global securities, in street name or by any other indirect means. This will be the case whether an investor chooses to be an indirect holder of a debt security or has no choice because we are issuing the debt securities only in book-entry form.

For example, once we make a payment or give a notice to the holder, we have no further responsibility for the payment or notice even if that holder is required, under agreements with depositary participants or customers or by law, to pass it along to the indirect holders but does not do so. Similarly, if we want to obtain the approval of the holders for any purpose (for example, to amend an indenture or to relieve us of the consequences of a default or of our obligation to comply with a particular provision of an indenture), we would seek the approval only from the holders, and not the indirect holders, of the debt securities. Whether and how the holders contact the indirect holders is up to the holders.

When we refer to you in this Description of Our Debt Securities, we mean those who invest in the debt securities being offered by this prospectus, whether they are the holders or only indirect holders of those debt securities. When we refer to your debt securities, we mean the debt securities in which you hold a direct or indirect interest.

Special Considerations for Indirect Holders

If you hold debt securities through a bank, broker or other financial institution, either in book-entry form or in street name, we urge you to check with that institution to find out: • how it handles securities payments and notices;

whether it imposes fees or charges;
how it would handle a request for the holders’ consent, if ever required;
whether and how you can instruct it to send you debt securities registered in your own name so you can be a holder, if that is permitted in the future for a particular series of debt securities;
how it would exercise rights under the debt securities if there were a default or other event triggering the need for holders to act to protect their interests; and
if the debt securities are in book-entry form, how the depositary’s rules and procedures will affect these matters.

Global Securities

As noted above, we usually will issue debt securities as registered securities in book-entry form only. A global security represents one or any other number of individual debt securities. Generally, all debt securities represented by the same global securities will have the same terms.

Each debt security issued in book-entry form will be represented by a global security that we deposit with and register in the name of a financial institution or its nominee that we select. The financial institution that we select for this purpose is called the depositary. Unless we specify otherwise in the applicable prospectus supplement, The Depository Trust Company, New York, New York, known as DTC, will be the depositary for all debt securities issued in book-entry form.

A global security may not be transferred to or registered in the name of anyone other than the depositary or its nominee, unless special termination situations arise. We describe those situations below under “— Termination of a Global Security.” As a result of these arrangements, the depositary, or its nominee, will be the sole registered owner and holder of all debt securities represented by a global security, and investors will be permitted to own only beneficial interests in a global security. Beneficial interests must be held by means of an account with a broker, bank or other financial institution that in turn has an account with the depositary or with another institution that has an account with the depositary. Thus, an investor whose security is represented by a global security will not be a holder of the debt security, but only an indirect holder of a beneficial interest in the global security.

263


 
 

TABLE OF CONTENTS

Special Considerations for Global Securities

As an indirect holder, an investor’s rights relating to a global security will be governed by the account rules of the investor’s financial institution and of the depositary, as well as general laws relating to securities transfers. The depositary that holds the global security will be considered the holder of the debt securities represented by the global security. The 7.00% Notes due 2021 and the 7.5% Notes due 2022 have been issued pursuant to a global note.

If debt securities are issued only in the form of a global security, an investor should be aware of the following:

an investor cannot cause the debt securities to be registered in his or her name and cannot obtain certificates for his or her interest in the debt securities, except in the special situations we describe below;
an investor will be an indirect holder and must look to his or her own bank or broker for payments on the debt securities and protection of his or her legal rights relating to the debt securities, as we describe under “— Issuance of Securities in Registered Form” above;
an investor may not be able to sell interests in the debt securities to some insurance companies and other institutions that are required by law to own their securities in non-book-entry form;
an investor may not be able to pledge his or her interest in a global security in circumstances where certificates representing the debt securities must be delivered to the lender or other beneficiary of the pledge in order for the pledge to be effective;
the depositary’s policies, which may change from time to time, will govern payments, transfers, exchanges and other matters relating to an investor’s interest in a global security. We and the trustee have no responsibility for any aspect of the depositary’s actions or for its records of ownership interests in a global security. We and the trustee also do not supervise the depositary in any way;
if we redeem less than all the debt securities of a particular series being redeemed, DTC’s practice is to determine by lot the amount to be redeemed from each of its participants holding that series;
an investor is required to give notice of exercise of any option to elect repayment of its debt securities, through its participant, to the applicable trustee and to deliver the related debt securities by causing its participant to transfer its interest in those debt securities, on DTC’s records, to the applicable trustee;
DTC requires that those who purchase and sell interests in a global security deposited in its book-entry system use immediately available funds, your broker or bank may also require you to use immediately available funds when purchasing or selling interests in a global security;
financial institutions that participate in the depositary’s book-entry system, and through which an investor holds its interest in a global security, may also have their own policies affecting payments, notices and other matters relating to the debt securities; there may be more than one financial intermediary in the chain of ownership for an investor; we do not monitor, nor are we responsible for the actions of, any of those intermediaries.

Termination of a Global Security

If a global security is terminated for any reason, interests in it will be exchanged for certificates in non-book-entry form (certificated securities). After that exchange, the choice of whether to hold the certificated debt securities directly or in street name will be up to the investor. Investors must consult their own banks or brokers to find out how to have their interests in a global security transferred on termination to their own names, so that they will be holders. We have described the rights of legal holders and street name investors under “— Issuance of Securities in Registered Form” above.

264


 
 

TABLE OF CONTENTS

The prospectus supplement may list situations for terminating a global security that would apply only to the particular series of debt securities covered by the prospectus supplement. If a global security is terminated, only the depositary, and not us or the applicable trustee, is responsible for deciding the investors in whose names the debt securities represented by the global security will be registered and, therefore, who will be the holders of those debt securities.

Payment and Paying Agents

We will pay interest to the person listed in the applicable trustee’s records as the owner of the debt security at the close of business on a particular day in advance of each due date for interest, even if that person no longer owns the debt security on the interest due date. That day, usually about two weeks in advance of the interest due date, is called the “record date.” Since we will pay all the interest for an interest period to the holders on the record date, holders buying and selling debt securities must work out between themselves the appropriate purchase price. The most common manner is to adjust the sales price of the debt securities to prorate interest fairly between buyer and seller based on their respective ownership periods within the particular interest period. This prorated interest amount is called “accrued interest.”

Payments on Global Securities

We will make payments on a global security in accordance with the applicable policies of the depositary as in effect from time to time. Under those policies, we will make payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in the global security. An indirect holder’s right to those payments will be governed by the rules and practices of the depositary and its participants, as described under “— Special Considerations for Global Securities.”

Payments on Certificated Securities

We will make payments on a certificated debt security as follows. We will pay interest that is due on an interest payment date to the holder of debt securities as shown on the trustee’s records as of the close of business on the regular record date at our office in New York, New York, as applicable, and/or at other offices that may be specified in the prospectus supplement. We will make all payments of principal and premium, if any, by check at the office of the applicable trustee in New York, New York and/or at other offices that may be specified in the prospectus supplement or in a notice to holders against surrender of the debt security.

Alternatively, at our option, we may pay any cash interest that becomes due on the debt security by mailing a check to the holder at his, her, or its address shown on the trustee’s records as of the close of business on the regular record date or by transfer to an account at a bank in the United States, in either case, on the due date.

Payment When Offices Are Closed

If any payment is due on a debt security on a day that is not a business day, we will make the payment on the next day that is a business day. Payments made on the next business day in this situation will be treated under the indenture as if they were made on the original due date, except as otherwise indicated in the attached prospectus supplement. Such payment will not result in a default under any debt security or the indenture, and no interest will accrue on the payment amount from the original due date to the next day that is a business day.

Book-entry and other indirect holders should consult their banks or brokers for information on how they will receive payments on their debt securities.

Events of Default

You will have rights if an Event of Default occurs in respect of the debt securities of your series and is not cured, as described later in this subsection.

The term “Event of Default” in respect of the debt securities of your series means any of the following:

we do not pay the principal of (or premium, if any, on) a debt security of the series within five days of its due date;

265


 
 

TABLE OF CONTENTS

we do not pay interest on a debt security of the series within 30 days of its due date;
we do not deposit any sinking fund payment in respect of debt securities of the series within two business days of its due date;
we remain in breach of a covenant in respect of debt securities of the series for 60 days after we receive a written notice of default stating we are in breach (the notice must be sent by either the trustee or holders of at least 25.0% of the principal amount of debt securities of the series);
we file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur and remain undischarged or unstayed for a period of 90 days; or
the series of debt securities has an asset coverage, as such term is defined in the 1940 Act, of less than 100.0% on the last business day of each of 24 consecutive calendar months, giving effect to any exemptive relief granted to us by the SEC; or
any other Event of Default in respect of debt securities of the series described in the prospectus supplement occurs.

An Event of Default for a particular series of debt securities does not necessarily constitute an Event of Default for any other series of debt securities issued under the same or any other indenture. The trustee may withhold notice to the holders of debt securities of any default, except in the payment of principal, premium, interest, or sinking or purchase fund installment, if it in good faith considers the withholding of notice to be in the interest of the holders.

Remedies if an Event of Default Occurs

If an Event of Default has occurred and is continuing, the trustee or the holders of not less than 25.0% in principal amount of the debt securities of the affected series may (and the trustee shall at the request of such holders) declare the entire principal amount of all the outstanding debt securities of that series to be due and immediately payable. This is called a declaration of acceleration of maturity. A declaration of acceleration of maturity may be canceled by the holders of a majority in principal amount of the outstanding debt securities of the affected series if (1) we have deposited with the trustee all amounts due and owing with respect to the securities (other than principal that has become due solely by reason of such acceleration) and certain other amounts, and (2) any other Events of Default have been cured or waived.

The trustee is not required to take any action under the indenture at the request of any holders unless the holders offer the trustee protection from expenses and liability reasonably satisfactory to it (called an “indemnity”). If indemnity reasonably satisfactory to the trustee is provided, the holders of a majority in principal amount of the outstanding debt securities of the relevant series may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee. The trustee may refuse to follow those directions in certain circumstances. No delay or omission in exercising any right or remedy will be treated as a waiver of that right, remedy or Event of Default.

Before you are allowed to bypass your trustee and bring your own lawsuit or other formal legal action or take other steps to enforce your rights or protect your interests relating to the debt securities, the following must occur:

you must give the trustee written notice that an Event of Default with respect to the relevant series of debt securities has occurred and remains uncured;
the holders of at least 25.0% in principal amount of all outstanding debt securities of the relevant series must make a written request that the trustee take action because of the default and must offer indemnity, security, or both reasonably satisfactory to the trustee against the costs, expenses, and other liabilities of taking that action;
the trustee must not have taken action for 60 days after receipt of the above notice and offer of indemnity and/or security; and
the holders of a majority in principal amount of the debt securities of that series must not have given the trustee a direction inconsistent with the above notice during that 60-day period.

266


 
 

TABLE OF CONTENTS

However, you are entitled at any time to bring a lawsuit for the payment of money due on your debt securities on or after the due date.

Book-entry and other indirect holders should consult their banks or brokers for information on how to give notice or direction to or make a request of the trustee and how to declare or cancel an acceleration of maturity.

Each year, we will furnish to each trustee a written statement of certain of our officers certifying that to their knowledge we are in compliance with the indenture and the debt securities, or else specifying any default.

Waiver of Default

Holders of a majority in principal amount of the outstanding debt securities of the affected series may waive any past defaults other than

the payment of principal, any premium or interest; or
in respect of a covenant that cannot be modified or amended without the consent of each holder.

Merger or Consolidation

Under the terms of the indenture, we are generally permitted to consolidate or merge with another entity. We are also permitted to sell all or substantially all of our assets to another entity. However, we may not take any of these actions unless all the following conditions are met:

where we merge out of existence or sells substantially all of our assets, the resulting entity or transferee must agree to be legally responsible for our obligations under the debt securities;
the merger or sale of assets must not cause a default on the debt securities and we must not already be in default (unless the merger or sale would cure the default). For purposes of this no-default test, a default would include an Event of Default that has occurred and has not been cured, as described under “Events of Default” above. A default for this purpose would also include any event that would be an Event of Default if the requirements for giving us a notice of default or our default having to exist for a specific period of time were disregarded.
we must deliver certain certificates and documents to the trustee; and
we must satisfy any other requirements specified in the prospectus supplement relating to a particular series of debt securities.

Modification or Waiver

There are three types of changes we can make to the indenture and the debt securities issued thereunder.

Changes Requiring Your Approval

First, there are changes that we cannot make to your debt securities without your specific approval. The following is a list of those types of changes:

change the stated maturity of the principal of or interest on a debt security or the terms of any sinking fund with respect to any security;
reduce any amounts due on a debt security;
reduce the amount of principal payable upon acceleration of the maturity of an original issue discount or indexed security following a default or upon the redemption thereof or the amount thereof provable in a bankruptcy proceeding;
adversely affect any right of repayment at the holder’s option;
change the place or currency of payment on a debt security (except as otherwise described in the prospectus or prospectus supplement);
impair your right to sue for payment;

267


 
 

TABLE OF CONTENTS

adversely affect any right to convert or exchange a debt security in accordance with its terms;
modify the subordination provisions in the indenture in a manner that is adverse to outstanding holders of the debt securities;
reduce the percentage of holders of debt securities whose consent is needed to modify or amend the indenture;
reduce the percentage of holders of debt securities whose consent is needed to waive compliance with certain provisions of the indenture or to waive certain defaults;
modify any other aspect of the provisions of the indenture dealing with supplemental indentures with the consent of holders, waiver of past defaults, changes to the quorum or voting requirements or the waiver of certain covenants; and
change any obligation we have to pay additional amounts.

Changes Not Requiring Approval

The second type of change does not require any vote by the holders of the debt securities. This type is limited to clarifications, establishment of the form or terms of new securities of any series as permitted by the indenture and certain other changes that would not adversely affect holders of the outstanding debt securities in any material respect. We also do not need any approval to make any change that affects only debt securities to be issued under the indenture after the change takes effect.

Changes Requiring Majority Approval

Any other change to the indenture and the debt securities would require the following approval:

if the change affects only one series of debt securities, it must be approved by the holders of a majority in principal amount of that series; and
if the change affects more than one series of debt securities issued under the same indenture, it must be approved by the holders of a majority in principal amount of all of the series affected by the change, with all affected series voting together as one class for this purpose.

In each case, the required approval must be given by written consent.

The holders of a majority in principal amount of a series of debt securities issued under the indenture, voting together as one class for this purpose, may waive our compliance with some of its covenants applicable to that series of debt securities. However, we cannot obtain a waiver of a payment default or of any of the matters covered by the bullet points included above under “— Changes Requiring Your Approval.”

Further Details Concerning Voting

When taking a vote, we will use the following rules to decide how much principal to attribute to a debt security:

for original issue discount securities, we will use the principal amount that would be due and payable on the voting date if the maturity of these debt securities were accelerated to that date because of a default;
for debt securities whose principal amount is not known (for example, because it is based on an index), we will use the principal face amount at original issuance or a special rule for that debt security described in the prospectus supplement; and
for debt securities denominated in one or more foreign currencies, we will use the U.S. dollar equivalent. Debt securities will not be considered outstanding, and therefore not eligible to vote, if we have deposited or set aside in trust money for their payment or redemption or if we, any other obligor, or any affiliate of us or any obligor own such debt securities. Debt securities will also not be eligible to vote if they have been fully defeased as described later under “— Defeasance — Full Defeasance”.

268


 
 

TABLE OF CONTENTS

We will generally be entitled to set any day as a record date for the purpose of determining the holders of outstanding indenture securities that are entitled to vote or take other action under the indenture. However, the record date may not be more than 30 days before the date of the first solicitation of holders to vote on or take such action. If we set a record date for a vote or other action to be taken by holders of one or more series, that vote or action may be taken only by persons who are holders of outstanding indenture securities of those series on the record date and must be taken within 11 months following the record date.

Book-entry and other indirect holders should consult their banks or brokers for information on how approval may be granted or denied if we seek to change the indenture or the debt securities or requests a waiver.

Defeasance

The following provisions will be applicable to each series of debt securities unless we state in the applicable prospectus supplement that the provisions of covenant defeasance and full defeasance will not be applicable to that series.

Covenant Defeasance

Under current U.S. federal tax law and the indenture, we can make the deposit described below and be released from some of the restrictive covenants in the indenture under which the particular series was issued. This is called “covenant defeasance”. In that event, you would lose the protection of those restrictive covenants but would gain the protection of having money and government securities set aside in trust to repay your debt securities. If we achieved covenant defeasance and your debt securities were subordinated as described under “— Indenture Provisions — Subordination” below, such subordination would not prevent the trustee under the indenture from applying the funds available to it from the deposit described in the first bullet below to the payment of amounts due in respect of such debt securities for the benefit of the subordinated debt holders. In order to achieve covenant defeasance, the following must occur:

we must deposit in trust for the benefit of all holders of a series of debt securities a combination of cash (in such currency in which such securities are then specified as payable at stated maturity) or government obligations applicable to such securities (determined on the basis of the currency in which such securities are then specified as payable at stated maturity) that will generate enough cash to make interest, principal and any other payments on the debt securities on their various due dates and any mandatory sinking fund payments or analogous payments;
we must deliver to the trustee a legal opinion of our counsel confirming that, under current U.S. federal income tax law, we may make the above deposit without causing you to be taxed on the debt securities any differently than if we did not make the deposit;
we must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act and a legal opinion and officers’ certificate stating that all conditions precedent to covenant defeasance have been complied with;
defeasance must not result in a breach or violation of, or result in a default under, of the indenture or any of our other material agreements or instruments, as applicable;
no default or event of default with respect to such debt securities shall have occurred and be continuing and no defaults or events of default related to bankruptcy, insolvency or reorganization shall occur during the next 90 days; and
satisfy the conditions for covenant defeasance contained in any supplemental indentures.

If we accomplish covenant defeasance, you can still look to us for repayment of the debt securities if there were a shortfall in the trust deposit or the trustee is prevented from making payment. For example, if one of the remaining Events of Default occurred (such as our bankruptcy) and the debt securities became immediately due and payable, there might be such a shortfall. However, there is no assurance that we would have sufficient funds to make payment of the shortfall.

269


 
 

TABLE OF CONTENTS

Full Defeasance

If there is a change in U.S. federal tax law or we obtain an IRS ruling, as described in the second bullet below, we can legally release ourself from all payment and other obligations on the debt securities of a particular series (called “full defeasance”) if we put in place the following other arrangements for you to be repaid:

we must deposit in trust for the benefit of all holders of a series of debt securities a combination of cash (in such currency in which such securities are then specified as payable at stated maturity) or government obligations applicable to such securities (determined on the basis of the currency in which such securities are then specified as payable at stated maturity) that will generate enough cash to make interest, principal and any other payments on the debt securities on their various due dates and any mandatory sinking fund payments or analogous payments;
we must deliver to the trustee a legal opinion confirming that there has been a change in current U.S. federal tax law or an IRS ruling that allows us to make the above deposit without causing you to be taxed on the debt securities any differently than if we did not make the deposit. Under current U.S. federal tax law, the deposit and our legal release from the debt securities would be treated as though we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange for your debt securities and you would recognize gain or loss on the debt securities at the time of the deposit;
we must deliver to the trustee a legal opinion of its counsel stating that the above deposit does not require registration by us under the 1940 Act and a legal opinion and officers’ certificate stating that all conditions precedent to defeasance have been complied with;
defeasance must not result in a breach or violation of, or constitute a default under, of the indenture or any of our other material agreements or instruments, as applicable;
no default or event of default with respect to such debt securities shall have occurred and be continuing and no defaults or events of default related to bankruptcy, insolvency or reorganization shall occur during the next 90 days; and
satisfy the conditions for full defeasance contained in any supplemental indentures.

If we ever did accomplish full defeasance, as described above, you would have to rely solely on the trust deposit for repayment of the debt securities. You could not look to us for repayment in the unlikely event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of our lenders and other creditors, as applicable, if we ever became bankrupt or insolvent. If your debt securities were subordinated as described later under “— Indenture Provisions — Subordination”, such subordination would not prevent the trustee under the indenture from applying the funds available to it from the deposit referred to in the first bullet of the preceding paragraph to the payment of amounts due in respect of such debt securities for the benefit of the subordinated debt holders.

Form, Exchange and Transfer of Certificated Registered Securities

If registered debt securities cease to be issued in book-entry form, they will be issued:

only in fully registered certificated form;
without interest coupons; and
unless we indicate otherwise in the prospectus supplement, in denominations of $1,000 and amounts that are multiples of $1,000.

Holders may exchange their certificated securities for debt securities of smaller denominations or combined into fewer debt securities of larger denominations, as long as the total principal amount is not changed and as long as the denomination is greater than the minimum denomination for such securities.

Holders may exchange or transfer their certificated securities at the office of the trustee. We have appointed the trustee to act as its agent for registering debt securities in the names of holders transferring debt securities. We may appoint another entity to perform these functions or perform them ourself.

270


 
 

TABLE OF CONTENTS

Holders will not be required to pay a service charge to transfer or exchange their certificated securities, but they may be required to pay any tax or other governmental charge associated with the transfer or exchange. The transfer or exchange will be made only if our transfer agent, as applicable, is satisfied with the holder’s proof of legal ownership.

If we have designated additional transfer agents for your debt security, they will be named in the prospectus supplement. We may appoint additional transfer agents or cancel the appointment of any particular transfer agent. We may also approve a change in the office through which any transfer agent acts.

If any certificated securities of a particular series are redeemable and we redeem less than all the debt securities of that series, we may block the transfer or exchange of those debt securities during the period beginning 15 days before the day we mail the notice of redemption and ending on the day of that mailing, in order to freeze the list of holders to prepare the mailing. We may also refuse to register transfers or exchanges of any certificated securities selected for redemption, except that we will continue to permit transfers and exchanges of the unredeemed portion of any debt security that will be partially redeemed.

If a registered debt security is issued in book-entry form, only the depositary will be entitled to transfer and exchange the debt security as described in this subsection, since it will be the sole holder of the debt security.

Resignation of Trustee

Each trustee may resign or be removed with respect to one or more series of indenture securities provided that a successor trustee is appointed to act with respect to these series and has accepted such appointment. In the event that two or more persons are acting as trustee with respect to different series of indenture securities under the indenture, each of the trustees will be a trustee of a trust separate and apart from the trust administered by any other trustee.

Indenture Provisions — Subordination

Upon any distribution of our assets upon our dissolution, winding up, liquidation or reorganization, the payment of the principal of (and premium, if any) and interest, if any, on any indenture securities denominated as subordinated debt securities is to be subordinated to the extent provided in the indenture in right of payment to the prior payment in full of all Senior Indebtedness (as defined below), but our obligation to you to make payment of the principal of (and premium, if any) and interest, if any, on such subordinated debt securities will not otherwise be affected. In addition, no payment on account of principal (or premium, if any), sinking fund or interest, if any, may be made on such subordinated debt securities at any time unless full payment of all amounts due in respect of the principal (and premium, if any), sinking fund and interest on Senior Indebtedness has been made or duly provided for in money or money’s worth.

In the event that, notwithstanding the foregoing, any payment by us is received by the trustee in respect of subordinated debt securities or by the holders of any of such subordinated debt securities, upon our dissolution, winding up, liquidation or reorganization before all Senior Indebtedness is paid in full, the payment or distribution must be paid over to the holders of the Senior Indebtedness or on their behalf for application to the payment of all the Senior Indebtedness remaining unpaid until all the Senior Indebtedness has been paid in full, after giving effect to any concurrent payment or distribution to the holders of the Senior Indebtedness. Subject to the payment in full of all Senior Indebtedness upon this distribution by us, the holders of such subordinated debt securities will be subrogated to the rights of the holders of the Senior Indebtedness to the extent of payments made to the holders of the Senior Indebtedness out of the distributive share of such subordinated debt securities.

By reason of this subordination, in the event of a distribution of our assets upon our insolvency, certain of our senior creditors may recover more, ratably, than holders of any subordinated debt securities or the holders of any indenture securities that are not Senior Indebtedness. The indenture provides that these subordination provisions will not apply to money and securities held in trust under the defeasance provisions of the indenture.

Senior Indebtedness is defined in the indenture as the principal of (and premium, if any) and unpaid interest on:

271


 
 

TABLE OF CONTENTS

our indebtedness (including indebtedness of others guaranteed by us) whenever created, incurred, assumed or guaranteed, for money borrowed, that we have designated as “Senior Indebtedness” for purposes of the indenture and in accordance with the terms of the indenture (including any indenture securities designated as Senior Indebtedness), and
renewals, extensions, modifications and refinancings of any of this indebtedness. If this prospectus is being delivered in connection with the offering of a series of indenture securities denominated as subordinated debt securities, the accompanying prospectus supplement will set forth the approximate amount of our Senior Indebtedness and of our other Indebtedness outstanding as of a recent date.

Secured Indebtedness and Ranking

Certain of our indebtedness, including certain series of indenture securities, may be secured. The prospectus supplement for each series of indenture securities will describe the terms of any security interest for such series and will indicate the approximate amount of our secured indebtedness as of a recent date. Any unsecured indenture securities will effectively rank junior to any secured indebtedness, including any secured indenture securities, that we incur in the future to the extent of the value of the assets securing such future secured indebtedness. The debt securities, whether secured or unsecured, will rank structurally junior to all existing and future indebtedness (including trade payables) incurred by any subsidiaries, financing vehicles, or similar facilities we may have.

In the event of our bankruptcy, liquidation, reorganization or other winding up any of our assets that secure secured debt will be available to pay obligations on unsecured debt securities only after all indebtedness under such secured debt has been repaid in full from such assets. We advise you that there may not be sufficient assets remaining to pay amounts due on any or all unsecured debt securities then outstanding after fulfillment of this obligation. As a result, the holders of unsecured indenture securities may recover less, ratably, than holders of any of our secured indebtedness.

The Trustee under the Indenture

We intend to use a nationally recognized financial institution to serve as the trustee under the indenture.

Certain Considerations Relating to Foreign Currencies

Debt securities denominated or payable in foreign currencies may entail significant risks. These risks include the possibility of significant fluctuations in the foreign currency markets, the imposition or modification of foreign exchange controls and potential illiquidity in the secondary market. These risks will vary depending upon the currency or currencies involved and will be more fully described in the applicable prospectus supplement.

272


 
 

TABLE OF CONTENTS

PLAN OF DISTRIBUTION

We may offer, from time to time, up to $300,000,000 of common stock, preferred stock, subscription rights to purchase shares of common stock, warrants or debt securities, in one or more underwritten public offerings, at-the-market offerings, negotiated transactions, block trades, best efforts or a combination of these methods. We may sell our common stock through underwriters or dealers, “at-the-market” to or through a market maker into an existing trading market or otherwise directly to one or more purchasers or through agents or through a combination of methods of sale. In the case of a rights offering, the applicable prospectus supplement will set forth the number of shares of our common stock issuable upon the exercise of each right and the other terms of such rights offering. Any underwriter or agent involved in the offer and sale of the securities will be named in the applicable prospectus supplement. A prospectus supplement or supplements will also describe the terms of the offering of the securities, including: the purchase price of the securities and the proceeds we will receive from the sale; any options under which underwriters may purchase additional securities from us; any agency fees or underwriting discounts and other items constituting agents’ or underwriters’ compensation; the public offering price; any discounts or concessions allowed or re-allowed or paid to dealers; and any securities exchange or market on which the securities may be listed. Only underwriters named in the prospectus supplement will be underwriters of the shares offered by the prospectus supplement.

The distribution of the securities may be effected from time to time in one or more transactions at a fixed price or prices, which may be changed, at prevailing market prices at the time of sale, at prices related to such prevailing market prices, or at negotiated prices, provided, however, that the offering price per share of our common stock, less any underwriting commissions or discounts, must equal or exceed the net asset value per share of our common stock at the time of the offering except (i) in connection with a rights offering to our existing stockholders, (ii) with the prior approval of the majority of our common stockholders, or (iii) under such other circumstances as the SEC may permit. Any offering of securities by us that requires the consent of the majority of our common stockholders, must occur, if at all, within one year after receiving such consent. The price at which the securities may be distributed may represent a discount from prevailing market prices.

In connection with the sale of the securities, underwriters or agents may receive compensation from us or from purchasers of the securities, for whom they may act as agents, in the form of discounts, concessions or commissions. Underwriters may sell the securities to or through dealers and such dealers may receive compensation in the form of discounts, concessions or commissions from the underwriters and/or commissions from the purchasers for whom they may act as agents. Underwriters, dealers and agents that participate in the distribution of the securities may be deemed to be underwriters under the Securities Act, and any discounts and commissions they receive from us and any profit realized by them on the resale of the securities may be deemed to be underwriting discounts and commissions under the Securities Act. Any such underwriter or agent will be identified and any such compensation received from us will be described in the applicable prospectus supplement. The maximum aggregate commission or discount to be received by any member of FINRA or independent broker-dealer, including any reimbursements to underwriters or agents for certain fees and legal expenses incurred by them, will not be greater than 10.0% of the gross proceeds of the sale of shares offered pursuant to this prospectus and any applicable prospectus supplement.

Any underwriter may engage in over-allotment, stabilizing transactions, short-covering transactions and penalty bids in accordance with Regulation M under the Exchange Act. Over-allotment involves sales in excess of the offering size, which create a short position. Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum price. Syndicate-covering or other short-covering transactions involve purchases of the securities, either through exercise of the option to purchase additional shares from us or in the open market after the distribution is completed, to cover short positions. Penalty bids permit the underwriters to reclaim a selling concession from a dealer when the securities originally sold by the dealer are purchased in a stabilizing or covering transaction to cover short positions. Those activities may cause the price of the securities to be higher than it would otherwise be. If commenced, the underwriters may discontinue any of the activities at any time.

273


 
 

TABLE OF CONTENTS

Any underwriters that are qualified market makers on the Nasdaq Global Market may engage in passive market making transactions in our common stock on the Nasdaq Global Market in accordance with Regulation M under the Exchange Act, during the business day prior to the pricing of the offering, before the commencement of offers or sales of our common stock. Passive market makers must comply with applicable volume and price limitations and must be identified as passive market makers. In general, a passive market maker must display its bid at a price not in excess of the highest independent bid for such security; if all independent bids are lowered below the passive market maker’s bid, however, the passive market maker’s bid must then be lowered when certain purchase limits are exceeded. Passive market making may stabilize the market price of the shares at a level above that which might otherwise prevail in the open market and, if commenced, may be discontinued at any time.

We may sell securities directly or through agents we designate from time to time. We will name any agent involved in the offering and sale of securities and we will describe any commissions we will pay the agent in the prospectus supplement. Unless the prospectus supplement states otherwise, our agent will act on a best-efforts basis for the period of its appointment.

Unless otherwise specified in the applicable prospectus supplement, each class or series of securities will be a new issue with no trading market, other than our common stock, which is traded on the Nasdaq Global Market. We may elect to list any other class or series of securities on any exchanges, but we are not obligated to do so. We cannot guarantee the liquidity of the trading markets for any securities.

Under agreements that we may enter, underwriters, dealers and agents who participate in the distribution of our securities may be entitled to indemnification by us against certain liabilities, including liabilities under the Securities Act, or contribution with respect to payments that the agents or underwriters may make with respect to these liabilities. Underwriters, dealers and agents may engage in transactions with, or perform services for, us in the ordinary course of business.

If so indicated in the applicable prospectus supplement, we will authorize underwriters or other persons acting as our agents to solicit offers by certain institutions to purchase our securities from us pursuant to contracts providing for payment and delivery on a future date. Institutions with which such contracts may be made include commercial and savings banks, insurance companies, pension funds, investment companies, educational and charitable institutions and others, but in all cases such institutions must be approved by us. The obligations of any purchaser under any such contract will be subject to the condition that the purchase of our securities shall not at the time of delivery be prohibited under the laws of the jurisdiction to which such purchaser is subject. The underwriters and such other agents will not have any responsibility in respect of the validity or performance of such contracts. Such contracts will be subject only to those conditions set forth in the prospectus supplement, and the prospectus supplement will set forth the commission payable for solicitation of such contracts.

We may enter into derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use securities pledged by us or borrowed from us or others to settle those sales or to close out any related open borrowings of stock, and may use securities received from us in settlement of those derivatives to close out any related open borrowings of stock. The third parties in such sale transactions will be underwriters and, if not identified in this prospectus, will be identified in the applicable prospectus supplement.

In order to comply with the securities laws of certain states, if applicable, our securities offered hereby will be sold in such jurisdictions only through registered or licensed brokers or dealers.

274


 
 

TABLE OF CONTENTS

BROKERAGE ALLOCATION AND OTHER PRACTICES

Since we will generally acquire and dispose of our investments in privately negotiated transactions, we will infrequently use brokers in the normal course of our business. Subject to policies established by our board of directors, we will generally not execute transactions through any particular broker or dealer, but seek to obtain the best net results for us, taking into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty of execution, and operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities. While we generally will seek reasonably competitive trade execution costs, we will not necessarily pay the lowest spread or commission available. Subject to applicable legal requirements, we may select a broker based partly upon brokerage or research services provided us. In return for such services, we may pay a higher commission than other brokers would charge if we determine in good faith that such commission is reasonable in relation to the services provided, and our management and employees are authorized to pay such commission under these circumstances.

CUSTODIAN, TRANSFER AND DISTRIBUTION PAYING AGENT AND REGISTRAR

Our securities are held under a custody agreement by U.S. Bank National Association. The address of the custodian is 615 East Michigan Street, Milwaukee, Wisconsin 53202. American Stock Transfer and Trust Company will act as our transfer agent, distribution paying agent and registrar. The principal business address of our transfer agent is 6201 15th Avenue, Brooklyn, NY 11219.

LEGAL MATTERS

Certain legal matters in connection with the securities offered by this prospectus will be passed upon for us by Eversheds Sutherland (US) LLP, Washington, DC. Certain legal matters in connection with the offering will be passed upon for the underwriters by the counsel named in the applicable prospectus supplement.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have selected RSM US LLP as our independent registered public accounting firm located at 1185 Avenue of the Americas, New York, NY 10036. The consolidated financial statements of Newtek Business Services, Corp. as of and for the years ended December 31, 2016, December 31, 2015, December 31, 2014 have been audited by RSM US LLP.

AVAILABLE INFORMATION

We have filed with the SEC a registration statement on Form N-2, together with all amendments and related exhibits, under the Securities Act. The registration statement contains additional information about us and our securities being offered by this prospectus.

We file with or submit to the SEC annual, quarterly and current reports, proxy statements and other information meeting the informational requirements of the Exchange Act. You may inspect and copy these reports, proxy statements and other information, as well as the registration statement and related exhibits and schedules, at the SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C. 20549-0102. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

We maintain a website at www.thesba.com and intend to make all of our annual, quarterly and current reports, proxy statements and other publicly filed information available, free of charge, on or through our website. Information contained on our website is not incorporated into this prospectus, and you should not consider information on our website to be part of this prospectus. You may also obtain such information by contacting us in writing at 1981 Marcus Avenue, Suite 130, Lake Success, New York 11042. The SEC maintains a website that contains reports, proxy and information statements and other information we file with the SEC at www.sec.gov. Copies of these reports, proxy and information statements and other information may also be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing the SEC’s Public Reference Section, 100 F Street, N.E., Washington, D.C. 20549-0102. Information contained on our website or on the SEC’s website about us is not incorporated into this prospectus and you should not consider information contained on our website or on the SEC’s website to be part of this prospectus.

275


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS

Table of Contents

 
  PAGE
NO.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 
Report of Independent Registered Public Accounting Firm     F-2  
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting     F-3  
Consolidated Statements of Assets and Liabilities as of December 31, 2016 and 2015     F-4  
Consolidated Statements of Operations for the years ended December 31, 2016 and 2015
and the periods November 12, 2014 to December 31, 2014 and January 1, 2014 to November 11, 2014
    F-5  
Consolidated Statements of Changes in Net Assets/Stockholders' Equity for the years ended December 31, 2016 and 2015, the period from November 12, 2014 to December 31, 2014 and the period from January 1, 2014 to November 11, 2014     F-7  
Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015 and the periods from November 12, 2014 to December 31, 2014 and January 1, 2014 to November 11, 2014     F-9  
Consolidated Schedules of Investments as of December 31, 2016 and 2015     F-12  
Notes to Consolidated Financial Statements     F-103  
Universal Processing Services of Wisconsin, LLC Financial Statements
 
Independent Auditor’s Report     F-147  
Financial Statements
        
Balance Sheet     F-148  
Statement of Income     F-149  
Statement of Changes in Member’s Deficit     F-150  
Statement of Cash Flows     F-151  
Notes to Financial Statements     F-152  
INDEX TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
 
Condensed Consolidated Statements of Assets and Liabilities as of June 30, 2017 (Unaudited) and December 31, 2016     F-158  
Condensed Consolidated Statements of Operations (Unaudited) for the three and six months ended June 30, 2017 and 2016     F-159  
Condensed Consolidated Statement of Changes in Net Assets (Unaudited) for the six months ended June 30, 2017     F-160  
Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2017 and 2016     F-161  
Consolidated Schedule of Investments as of June 30, 2017 (Unaudited) and December 31, 2016     F-163  
Notes to Condensed Consolidated Financial Statements (Unaudited)     F-271  

F-1


 
 

TABLE OF CONTENTS

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders
Newtek Business Services Corp. and Subsidiaries

We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Newtek Business Services Corp. and Subsidiaries (the Company) as of December 31, 2016 and 2015, and the related consolidated statements of operations, changes in net assets/stockholders’ equity, and cash flows for the years ended December 31, 2016, and December 31, 2015, the period from November 12, 2014 to December 31, 2014, and the period from January 1, 2014 to November 11, 2014. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of December 31, 2016 and 2015, by correspondence with the borrowers or by other appropriate auditing procedures where replies from the borrowers were not received and by other appropriate auditing procedures with respect to controlled investments. Our audits also involved performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Newtek Business Services Corp. and Subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for the years ended December 31, 2016, and 2015, the period from November 12, 2014 to December 31, 2014, and the period from January 1, 2014 to November 11, 2014, in conformity with U.S. generally accepted accounting principles.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Newtek Business Services Corp. and Subsidiaries’ internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 13, 2017 expressed an unqualified opinion on the effectiveness of Newtek Business Services Corp. and Subsidiaries’ internal control over financial reporting.

/s/ RSM US LLP

New York, New York
March 13, 2017

F-2


 
 

TABLE OF CONTENTS

Report of Independent Registered Public Accounting Firm on
Internal Control Over Financial Reporting

To the Board of Directors and Stockholders
Newtek Business Services Corp. and Subsidiaries

We have audited Newtek Business Services Corp. and Subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Newtek Business Services Corp. and Subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Newtek Business Services Corp. and Subsidiaries as of December 31, 2016 and 2015, and the related consolidated statements of operations, changes in net assets/stockholders’ equity, and cash flows for the years ended December 31, 2016 and 2015, the period from November 12, 2014 to December 31, 2014 and the period from January 1, 2014 to November 11, 2014, and our report dated March 13, 2017 expressed an unqualified opinion.

/s/ RSM US LLP

New York, New York
March 13, 2017

F-3


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)

   
  December 31,
     2016   2015
ASSETS
                 
Investments, at fair value
                 
SBA unguaranteed non-affiliate investments (cost of $219,784 and $166,752, respectively; includes $197,927 and $146,463, respectively, related to securitization trusts)   $ 211,471     $ 158,355  
SBA guaranteed non-affiliate investments (cost of $10,262 and $2,069, respectively)     11,512       2,284  
Controlled investments (cost of $41,001 and $35,781, respectively)     121,302       104,376  
Non-control/non-affiliate investments (cost of $904 and $1,847, respectively)     904       1,824  
Investments in money market funds (cost of $35 and $35, respectively)     35       35  
Total investments at fair value     345,224       266,874  
Cash and cash equivalents     2,051       4,308  
Restricted cash     20,845       22,869  
Broker receivable     2,402       32,083  
Due from related parties     3,748       3,056  
Servicing assets, at fair value     16,246       13,042  
Credits in lieu of cash, at fair value           860  
Other assets     10,934       9,338  
Total assets   $ 401,450     $ 352,430  
LIABILITIES AND NET ASSETS
                 
Liabilities:
                 
Bank notes payable   $ 5,100     $ 29,100  
Notes due 2022 (Note 8)     7,853       7,770  
Notes due 2021 (Note 8)     38,767        
Notes payable – Securitization trusts (Note 8)     118,122       89,244  
Dividends payable           5,802  
Note payable – related parties     1,400       5,647  
Due to related parties     1,227       256  
Notes payable in credits in lieu of cash, at fair value           860  
Deferred tax liabilities     5,983       857  
Accounts payable, accrued expenses and other liabilities     13,904       8,945  
Total liabilities     192,356       148,481  
Commitments and contingencies (Note 9)
                 
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, 14,624 and 14,509 issued and outstanding, respectively)     293       290  
Additional paid-in capital     188,472       189,031  
Undistributed net investment income     8,092       4,437  
Net unrealized appreciation, net of deferred taxes     13,008       8,062  
Net realized (losses) gains     (771 )      2,129  
Total net assets     209,094       203,949  
Total liabilities and net assets   $ 401,450     $ 352,430  
Net asset value per common share   $ 14.30     $ 14.06  
                                                        

 
 
See accompanying notes to these consolidated financial statements.

F-4


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)

       
  As a Business Development Company   Prior to
becoming a
Business
Development
Company
     Year ended
December 31,
2016
  Year ended
December 31,
2015
  November 12,
2014 to
December 31,
2014
  January 1,
2014 to
November 11,
2014
Investment income:
                                   
From non-affiliate investments:
                                   
Interest income   $ 11,158     $ 8,924     $ 1,076     $  
Servicing income     6,160       4,611       562        
Other income     2,714       1,929       270        
Total investment income from non-affiliate investments     20,032       15,464       1,908        
From controlled investments:
                                   
Interest income     360       277       27        
Dividend income     10,573       10,218       37        
Other income           111       4        
Total investment income from controlled investments     10,933       10,606       68        
Total investment income     30,965       26,070       1,976        
Operating revenues:
                                   
Electronic payment processing   $     $     $     $ 79,527  
Web hosting and design                       13,730  
Premium income                       18,623  
Interest income                       5,663  
Servicing fee income – NSBF portfolio                       3,111  
Servicing fee income – external portfolios                       6,142  
Income from tax credits                       48  
Insurance commissions                       1,480  
Other income                       3,523  
Total operating revenues                       131,847  
Net change in fair value of:
                                   
SBA loans                       (3,663 ) 
Credits in lieu of cash and notes payable in credits in lieu of cash                       (5 ) 
Total net change in fair value                       (3,668 ) 
Expenses:
                                   
Electronic payment processing costs                       67,011  
Salaries and benefits     15,234       12,753       1,458       23,373  
Interest     8,440       6,479       568       7,323  
Depreciation and amortization     296       326       43       3,140  
Goodwill impairment                       1,706  
Provision for loan losses                       (53 ) 
Other general and administrative costs     16,255       12,697       2,236       18,536  
Total expenses     40,225       32,255       4,305       121,036  
Net investment loss before income tax     (9,260 )      (6,185 )      (2,329 )       
Provision for income tax – post BDC                 194        
Net investment loss     (9,260 )      (6,185 )      (2,523 )       

 
 
See accompanying notes to these consolidated financial statements.

F-5


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS – (continued)
(In Thousands, except for Per Share Data)

       
  As a Business Development Company   Prior to
becoming a
Business
Development
Company
     Year ended
December 31,
2016
  Year ended
December 31,
2015
  November 12,
2014 to
December 31,
2014
  January 1,
2014 to
November 11,
2014
Net realized and unrealized gains (losses):
                                   
Net realized gains on non-affiliate investments     31,512       28,386       595        
Net realized gains on controlled investments     108       5,473              
Net unrealized (depreciation) appreciation on SBA guaranteed non-affiliate investments     1,035       (3,215 )      3,007        
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments     18       1,183       (274 )       
Net unrealized appreciation on controlled investments     11,337       12,250              
Provision for deferred taxes on unrealized appreciation on investments     (5,128 )      (857 )             
Net unrealized depreciation on
non-control/non-affiliate investments
    (43 )      (24 )             
Net unrealized depreciation on servicing assets     (2,269 )      (1,268 )      (120 )       
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash     (5 )      (7 )      (4 )       
Net realized and unrealized gains     36,565       41,921       3,204        
Income before income taxes                       7,143  
Net increase in net assets   $ 27,305     $ 35,736     $ 681     $  
Provision for income taxes                       3,935  
Net income                       3,208  
Net loss attributable to non-controlling interests                       85  
Net income attributable to Newtek Business Services Corp.   $     $     $     $ 3,293  
Weighted average common shares outstanding:
                                   
Basic                       7,315  
Diluted                       7,315  
Basic income per share   $     $     $     $ 0.45  
Diluted income per share   $     $     $     $ 0.45  
Net increase in net assets per share   $ 1.88     $ 3.32     $ 0.09     $  
Net investment loss per share   $ (0.64 )    $ (0.57 )    $ (0.33 )    $  
Dividends and distributions declared per share   $ 1.53     $ 4.45     $     $  
Weighted average shares outstanding     14,541       10,770       7,620           

 
 
See accompanying notes to these consolidated financial statements.

F-6


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS/STOCKHOLDERS’ EQUITY
(In Thousands)

                     
                     
  Number of
Shares of
Common
Stock
  Common
Stock
  Additional
Paid-in
Capital
  Retained
Earnings
  Number of
Shares of
Treasury
Stock
  Treasury
Stock
  Non-
controlling
Interest
  Accumulated
Net
Investment
Loss
  Net
Unrealized
Appreciation
  Net
Realized
Gains
  Total
Balance at December 31, 2013     7,382     $ 148     $ 61,939     $ 14,536       306     $ (1,279 )    $ 1,665     $     $           $ 77,009  
Issuance of restricted stock     146       3       (3 )            (53 )                                     
Grant of restricted stock awards                 865                                                 865  
Issuance of treasury shares     10             70                   60                               130  
Exercise of stock options     45       1       259             (9 )      (161 )                              99  
Warrant exercise     155       3       (973 )            (182 )      970                                
Shares withheld in lieu of payroll taxes                 (1,290 )                                                (1,290 ) 
Tax benefit from exercise/vesting of share based awards                 563                                                 563  
Share retirement     (62 )      (1 )      (409 )            (62 )      410                                
Distribution of non-controlling interest                                         (33 )                        (33 ) 
Net income                       3,293                   (85 )                        3,208  
Balance at November 11, 2014     7,676     $ 154       61,021     $ 17,829           $     $ 1,547     $     $     $     $ 80,551  
Election to business development company (Note 2)                 76,679       (17,829 )                  (1,547 )                        57,303  
Issuance of common stock, net of offering costs (Note 11)     2,530       51       27,832                                                 27,883  
Net increase in net assets                                               (2,523 )      2,609       595       681  
Balance at December 31, 2014     10,206     $ 205     $ 165,532     $           $     $     $ (2,523 )    $ 2,609     $ 595     $ 166,418  

 
 
See accompanying notes to these consolidated financial statements.

F-7


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(In Thousands)

   
  Year ended December 31, 2016   Year ended December 31, 2015
Increase in net assets:
                 
Net investment loss   $ (9,260 )    $ (6,185 ) 
Net realized gain on investments     31,620       33,859  
Net change in unrealized appreciation on investments     12,347       10,194  
Change in provision for deferred taxes on unrealized gains on investments     (5,128 )      (857 ) 
Net change in unrealized depreciation on servicing assets     (2,269 )      (1,268 ) 
Net change in unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash     (5 )      (7 ) 
Net increase in net assets     27,305       35,736  
Distributions to shareholders:
                 
Distributions to shareholders from net realized gains (Note 12)     (22,163 )      (20,912 ) 
Special dividend (Note 12)           (9,195 ) 
Total distributions to shareholders     (22,163 )      (30,107 ) 
Capital share transactions:
                 
Issuance of common stock under dividend reinvestment plan     665       288  
Stock compensation     578        
Repurchase of common stock under share repurchase plan     (866 )       
Issuance of common stock in connection with acquisition of Premier Payments LLC           2,472  
Issuance of common stock in connection with legal settlement           215  
Issuance of common stock, net of offering costs (Note 11)           35,290  
Net increase in net assets from capital share transactions     377       38,265  
Other transactions:
                 
Consolidation of The Texas Whitestone Group, LLC and CCC Real Estate Holdings, LLC           (33 ) 
Consolidation of Exponential Business Development Co., Inc. (Note 2)     (376 )       
Adjustment for 2014 offering costs           17  
Return of dividends related to common stock issued in connection with litigation settlement     2        
Reversal of deferred tax asset           (2,870 ) 
Distribution to members of Exponential of New York, LLC           (2,677 ) 
Out of period adjustment related to BDC Conversion (Note 2)           (800 ) 
Net decrease in net assets from other transactions     (374 )      (6,363 ) 
Total increase in net assets     5,145       37,531  
Net assets at beginning of year     203,949       166,418  
Net assets at end of year   $ 209,094     $ 203,949  
Common shares outstanding at end of period     14,624       14,509  
Capital share activity:
                 
Shares issued under dividend reinvestment plan     58       17  
Shares issued under Equity Incentive Plan     127        
Shares repurchase under share repurchase plan     (70 )       
Shares issued in connection with acquisition of Premier Payments LLC           131  
Shares issued in connection with legal settlement           11  
Shares issued in connection with public offering           2,300  
Shares issued in connection with special dividend           1,844  
Net increase in capital share activity     115       4,303  

 
 
See accompanying notes to these consolidated financial statements.

F-8


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

       
  As a Business Development Company   Prior to
becoming a
Business
Development
Company
     December 31,
2016
  December 31,
2015
  November 12,
2014 to
December 31,
2014
  January 1,
2014 to
November 11,
2014
Cash flows from operating activities:
                                   
Net increase in net assets/net income   $ 27,305     $ 35,736     $ 681     $ 3,208  
Adjustments to reconcile net increase in net assets/net income to net cash (used in) provided by operating activities:
                                   
Amortization of deferred financing costs and debt discount related to debt refinancing                       1,905  
Fair value adjustments on SBA loans                       3,663  
Net unrealized appreciation on controlled investments     (11,337 )      (12,250 )             
Net unrealized (appreciation) depreciation on non-affiliate investments     (1,010 )      2,056       (2,733 )       
Net unrealized depreciation on servicing assets     2,269       1,268       120        
Realized gains on controlled investments     (108 )      (5,473 )             
Realized gains on non-affiliate investments     (32,437 )      (29,573 )             
Realized losses on non-affiliate investments     925       1,189              
Loss on lease     604                    
Amortization of deferred financing costs     1,327       1,318       332       1,127  
Deferred income taxes     5,128       857       16       328  
Depreciation and amortization     296       326       43       3,140  
Purchase of loan from SBA     (2,057 )      (703 )             
Funding of controlled investments     (8,595 )      (17,100 )      (2,400 )       
Funding of non-control/non-affiliate investment     (1,020 )      (2,200 )             
Funding of guaranteed non-affiliate SBA loans     (234,908 )      (185,443 )      (30,914 )       
Proceeds from sale of non-affiliate SBA loans     258,873       240,663       6,421        
Funding of unguaranteed non-affiliate SBA loans     (74,239 )      (57,053 )      (8,570 )       
Distributions received from investments in excess of basis     108       5,473              
Principal received from non-control/non-affiliate investment     751       353              
Return of investment from controlled investments     535       3,746              
Principal received from controlled investments     4,052       1,200              
Principal received on SBA loans     22,106       20,086       1,305        
Goodwill impairment                       1,706  

 
 
See accompanying notes to these consolidated financial statements.

F-9


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS – (continued)
(In Thousands)

       
  As a Business Development Company   Prior to
becoming a
Business
Development
Company
     December 31,
2016
  December 31,
2015
  November 12,
2014 to
December 31,
2014
  January 1,
2014 to
November 11,
2014
Provision for loan losses                       (53 ) 
Provision for doubtful accounts                       559  
Other, net     781       (188 )      (12 )      810  
Changes in operating assets and liabilities:
                                   
Investment in money market funds           2,965       (3,000 )       
Originations of SBA loans held for sale                       (123,284 ) 
Proceeds from sale of SBA loans held for sale                       123,935  
Broker receivable     29,681       (32,083 )      6,718       6,889  
Due to/from related parties     (158 )      (2,477 )      829        
Accounts receivable     (14 )      100       1,441       (873 ) 
Prepaid expenses, accrued interest receivable and other assets     (191 )      5,013       (4,425 )      4,607  
Accounts payable, accrued expenses and other liabilities     2,708       1,725       (5,698 )      3,480  
Change in restricted cash     3,187       (12,655 )      1,061       (3,498 ) 
Capitalized servicing asset     (5,474 )      (4,827 )      (138 )      (3,096 ) 
Net cash (used in) provided by operating activities     (10,912 )      (37,951 )      (38,923 )      24,553  
Cash flows from investing activities:
                                   
Investments in qualified businesses                       (214 ) 
Purchase of fixed assets and customer accounts     (375 )      (105 )      (20 )      (1,369 ) 
Proceeds from sale of intangible asset           407              
SBA loans originated for investment, net                       (39,786 ) 
Payments received on SBA loans                       10,853  
Proceeds from sale of loan held for investment                       500  
Net cash (used in) provided by investing activities     (375 )      302       (20 )      (30,016 ) 
Cash flows from financing activities:
                                   
Net borrowings on bank lines of credit     (24,000 )      (4,756 )      (1,091 )      8,435  
Proceeds from common shares sold, net of offering costs           35,290       29,728        
Proceeds from term loan                       10,000  
Net borrowing from related party     (4,247 )      5,647              
Repurchase of common stock under share repurchase plan     (866 )                   
Payments on bank note payable           (9,167 )      (417 )      (11,007 ) 
Proceeds from Notes due 2022           8,324              
Proceeds from Notes due 2021     40,250                    
Payments on senior notes     (24,379 )      (19,993 )      (2,070 )      (10,527 ) 

 
 
See accompanying notes to these consolidated financial statements.

F-10


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS – (continued)
(In Thousands)

       
  As a Business Development Company   Prior to
becoming a
Business
Development
Company
     December 31,
2016
  December 31,
2015
  November 12,
2014 to
December 31,
2014
  January 1,
2014 to
November 11,
2014
Issuance of senior notes     53,444       32,029       31,679        
Dividends paid     (27,300 )      (15,111 )             
Special dividend paid           (9,195 )             
Change in restricted cash related to securitization     (1,163 )      5,175       (4,935 )      6,441  
Additions to deferred financing costs     (2,695 )      (1,409 )      (869 )      (860 ) 
Exponential of New York, LLC distributions to members           (2,673 )             
Proceeds from exercise of stock options                       15  
Payments on behalf of employees for payroll tax liability exchanged for shares in connection with early vesting                       (1,207 ) 
Other, net     (14 )      (17 )      (2 )      (236 ) 
Net cash provided by financing activities     9,030       24,144       52,023       1,054  
Net (decrease) increase in cash and cash equivalents     (2,257 )      (13,505 )      13,080       (4,409 ) 
Cash and cash equivalents – beginning of
year/period
  $ 4,308     $ 17,813     $ 4,733     $ 12,508  
Cash and cash equivalents – end of
year/period
  $ 2,051     $ 4,308     $ 17,813     $ 8,099  
Supplemental disclosure of cash flow activities:
                                   
Cash paid for interest   $ 6,687     $ 4,617     $ 638     $ 3,970  
Cash paid for taxes   $     $     $     $ 6,187  
Non-cash 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 to Certified Investors   $ 869     $ 1,394     $ 174     $ 1,287  
Fixed assets acquired from tenant improvement allowance   $ 1,288     $     $     $  
Foreclosed real estate acquired   $ 447     $ 1,130     $     $ 136  
Dividends declared but not paid during
the year
  $     $ 5,802     $     $  
Reversal of deferred tax asset   $     $ 2,870     $     $  
Issuance of common shares in connection with investment in Premier Payments LLC   $     $ 2,472     $     $  
Issuance of common shares in connection with legal settlement   $     $ 215     $     $  
Issuance of common shares under dividend reinvestment plan   $ 665     $ 288     $     $  
Out of period adjustment in connection with BDC Conversion   $     $ 800     $     $  

 
 
See accompanying notes to these consolidated financial statements.

F-11


 
 

TABLE OF CONTENTS

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 % 
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 % 

 
 
See accompanying notes to these consolidated financial statements.

F-12


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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 % 
ˆNew 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 % 
ˆThe 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 % 
Noso Development LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       12/1/2026     $ 75.0     $ 75.0     $ 64.0       0.03 % 
ˆEricon, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/1/2041     $ 726.1     $ 726.1     $ 717.8       0.34 % 
ˆPebble Wood Lane, LLC and Good Sam's Assisted Living Residence, 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       % 
ˆQuick 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 % 
ˆUsman 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-13


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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 % 
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 % 
ˆJ.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 % 
ˆJ. 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 % 
ˆPanther 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 % 
ˆJ. 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 % 
ˆBovill Creative, LLC     Real Estate       Term Loan       Prime plus 2.75%       11/9/2041     $ 281.2     $ 281.1     $ 291.7       0.14 % 
ˆBig 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 % 
ˆDyer 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 % 
ˆRich'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 % 
ˆFine Line Interiors, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/4/2041     $ 87.5     $ 87.5     $ 90.8       0.04 % 
ˆPig-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 % 
ˆVeracruz 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-14


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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 % 
ˆBloomquist Communications Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2026     $ 60.0     $ 59.6     $ 50.9       0.02 % 
ˆMoolchan 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 % 
ˆWoodstock 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 % 
ˆPatina 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 % 
ˆFibAire Communications, LLC     Telecommunications       Term Loan       Prime plus 2.75%       10/27/2026     $ 107.5     $ 106.8     $ 97.6       0.05 % 
ˆBonita 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 % 
ˆEmpire 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 % 
ˆGold Wind Logistics LLC     Truck Transportation       Term Loan       Prime plus 2.75%       10/20/2041     $ 175.0     $ 175.0     $ 181.6       0.09 % 
ˆSpeaker 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 % 
ˆMaine Service Corp     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       10/13/2026     $ 206.3     $ 204.3     $ 190.3       0.09 % 
ˆJustin Partlow     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       10/13/2026     $ 19.5     $ 19.4     $ 16.5       0.01 % 
ˆReliable Recovery Services LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       10/7/2026     $ 112.5     $ 111.8     $ 101.4       0.05 % 
ˆAilky 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 % 
ˆWyspen 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 % 
ˆJJA 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 % 
ˆMegaPhase, LLC     Computer and Electronic Product Manufacturing       Term Loan       Prime plus 2.75%       9/30/2026     $ 150.0     $ 148.2     $ 141.8       0.07 % 
ˆSeaway 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 % 
ˆAdelworth 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 % 
ˆLas 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-15


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆThunderdome 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 % 
ˆParagon 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 % 
ˆGraphics, 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 % 
ˆBeadon Inc     Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/28/2026     $ 22.5     $ 22.2     $ 22.0       0.01 % 
ˆCD Game Exchange Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/28/2026     $ 22.5     $ 22.2     $ 19.0       0.01 % 
ˆCNC 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 % 
ˆKyle 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 % 
ˆLuna 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 % 
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 % 
ˆLuv 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 % 
ˆSarah 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 % 
ˆTPFC, LLC dba The Picture Frame Company     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/26/2041     $ 58.8     $ 58.6     $ 58.1       0.03 % 
ˆRidge 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       % 
ˆPeopleBest Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/26/2026     $ 15.0     $ 14.8     $ 12.6       0.01 % 
ˆMr. 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 % 
ˆB4 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 % 
ˆInformationTelevision 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 % 
ˆKids 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 % 
ˆGRA Financial Services Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/22/2026     $ 12.0     $ 11.9     $ 10.1       % 
ˆWrecking 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 % 
ˆCuppiecakes LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/21/2041     $ 22.5     $ 22.4     $ 22.1       0.01 % 
ˆBenoit's Towing and Recovery
LLC
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       9/20/2026     $ 12.0     $ 11.9     $ 10.3       % 
ˆConsulting 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-16


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBrittany 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 % 
ˆEyncon LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/16/2041     $ 50.0     $ 49.9     $ 49.8       0.02 % 
ˆTresa 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       % 
ˆThe 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 % 
ˆRich'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 % 
ˆAtlantic 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 % 
ˆMetropet Dog Center, Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/13/2041     $ 109.3     $ 108.9     $ 109.2       0.05 % 
ˆMarquis Cattle Company     Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       9/13/2026     $ 50.0     $ 49.7     $ 50.1       0.02 % 
ˆBingham 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 % 
ˆArtisan 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 % 
ˆSRA Mechanicial Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/6/2041     $ 43.8     $ 43.6     $ 45.0       0.02 % 
ˆSandia 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 % 
ˆAnimal 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 % 
ˆSuncrest Stone Products LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2026     $ 586.8     $ 576.0     $ 514.8       0.25 % 
ˆClark Realty LLC     Real Estate       Term Loan       Prime plus 2.75%       8/29/2041     $ 237.5     $ 236.5     $ 225.0       0.11 % 
ˆRaem 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 % 
ˆSuncrest Stone Products LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2041     $ 649.6     $ 646.9     $ 596.9       0.29 % 
ˆTAGR Inc dba Miami Grill 137 and John Nakis     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/26/2026     $ 106.8     $ 104.8     $ 91.7       0.04 % 
ˆWarren 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 % 
ˆAlbert 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 % 
ˆDean 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 % 
ˆRosmel Pools Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026     $ 22.5     $ 22.1     $ 19.3       0.01 % 
ˆAvery Management Inc. dba Whetstone Upholstery     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026     $ 10.7     $ 10.5     $ 8.9       % 
ˆTR 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 % 
ˆTabadesa 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-17


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTim'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 % 
ˆLuv 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 % 
ˆ2 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 % 
ˆGrayson O Company     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/10/2041     $ 625.0     $ 622.4     $ 639.7       0.31 % 
ˆCharal 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 % 
ˆPCNKC 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 % 
ˆPaul 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 % 
ˆR 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 % 
ˆThe Hungry Rhino LLC     Real Estate       Term Loan       Prime plus 2.75%       7/29/2041     $ 76.3     $ 75.8     $ 74.9       0.04 % 
ˆNicolette 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 % 
ˆUSA 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 % 
ˆLittle Tree Huggers Child Care
LLC
    Social Assistance       Term Loan       Prime plus 2.75%       7/29/2041     $ 140.0     $ 139.2     $ 143.9       0.07 % 
ˆ303 Tower Drive LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       7/29/2041     $ 400.3     $ 398.0     $ 403.4       0.19 % 
ˆKJCKD 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 % 
ˆBig 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 % 
ˆ676 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 % 
ˆMacIver 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 % 
ˆJ 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 % 
ˆIntrepid Trinity LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       7/28/2041     $ 62.5     $ 62.1     $ 62.4       0.03 % 
ˆApple 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 % 
ˆKidtastic 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 % 
ˆGF 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 % 
ˆEPEC 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 % 
ˆPinco 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 % 
ˆPeckett's Inc     Crop Production       Term Loan       Prime plus 2.75%       7/27/2041       225.0       224.7       233.0       0.11%  

 
 
See accompanying notes to these consolidated financial statements.

F-18


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆJAG 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 % 
ˆThe 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 % 
ˆGino 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 % 
ˆMy Sainath Inc dba Motel 6     Accommodation       Term Loan       Prime plus 2.75%       7/22/2041       305.4       303.7       308.6       0.15 % 
ˆRobert 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 % 
ˆJ 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 % 
ˆRobert 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 % 
ˆBillingsworks 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       % 
ˆBe Beautiful LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       7/14/2041       66.5       66.1       67.2       0.03 % 
ˆTakeuchi 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 % 
ˆJacob 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 % 
ˆRM 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 % 
ˆDino 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 % 
ˆP 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 % 
ˆSoregard Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       6/30/2041       278.8       276.8       260.2       0.12 % 
ˆMartin Inventory Management LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/30/2026       105.8       102.5       102.8       0.05 % 
ˆDesert Tacos LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2026       98.8       98.3       91.3       0.04 % 
ˆVMA Technologies LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/30/2026       22.5       21.8       18.4       0.01 % 
ˆCorning 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 % 
ˆCastone Creations Inc     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       6/29/2026       87.5       84.8       74.7       0.04 % 
ˆWGI, LLC dba Williams Grant
Inn
    Accommodation       Term Loan       Prime plus 2.75%       6/29/2041       131.3       130.3       128.8       0.06 % 
ˆO.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 % 
ˆKWG 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 % 
ˆNinsa LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2041       112.5       111.7       115.5       0.06%  

 
 
See accompanying notes to these consolidated financial statements.

F-19


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆE & 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 % 
ˆMaidPro Marin dba MaidPro     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/28/2026       17.6       17.0       14.3       0.01 % 
ˆEdge Pest Control LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/27/2026       750.0       726.9       612.0       0.29 % 
ˆAll 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 % 
ˆIsland 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 % 
ˆJumbomarkets 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 % 
ˆYellow 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 % 
ˆEl 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 % 
ˆLong 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 % 
ˆVisual 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 % 
ˆSNS 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 % 
ˆItalian 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 % 
ˆEvergreen 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 % 
ˆBagelicious, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/17/2026       54.6       52.9       44.8       0.02 % 
ˆT 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 % 
ˆNKJ Lusby Donuts LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/16/2026       22.5       21.8       18.4       0.01 % 
ˆWinegirl Wines LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       6/16/2026       11.3       10.9       10.9       0.01 % 
ˆBlue 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 % 
ˆJai-Alexia Consulting, Inc.     Couriers and Messengers       Term Loan       Prime plus 2.75%       6/15/2026       11.8       11.5       9.6       % 
ˆPumpkin 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 % 
ˆStrag 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 % 
ˆLuv 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 % 
ˆRefoleen 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 % 
ˆVBGB 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 % 
ˆScimTech 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       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-20


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLarry 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 % 
ˆSolvit 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 % 
ˆAP5 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 % 
ˆATI Jet Inc     Air Transportation       Term Loan       Prime plus 2.75%       5/31/2026       518.8       499.9       441.7       0.21 % 
ˆFarmer 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 % 
ˆPremier 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 % 
ˆMNM 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 % 
ˆMersada Holdings LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       5/26/2026       337.5       325.0       326.1       0.16 % 
ˆJack 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 % 
ˆSouthwest Division Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       5/26/2026       8.3       7.9       7.1       % 
ˆInternational Kitchen Supply LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/25/2026       186.8       179.8       160.3       0.08 % 
ˆPennyLion 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 % 
ˆGroth 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 % 
ˆIsland 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 % 
ˆPowerspec Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/24/2026       87.5       84.3       71.0       0.03 % 
ˆHorseshoe Barbecue, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/23/2029       15.0       14.2       14.4       0.01 % 
ˆPro Auto Repair LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/20/2026       7.5       7.2       6.9       % 
ˆElderfriend 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       % 
ˆCM Lab Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/20/2026       172.6       169.5       156.1       0.07 % 
ˆNational 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 % 
ˆJ&A Laundromat Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/18/2026       67.5       65.0       56.3       0.03 % 
ˆHBA 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 % 
ˆDedicated Incorporated     Administrative and Support Services       Term Loan       Prime plus 2.75%       5/18/2041       46.5       46.1       45.9       0.02 % 
ˆStudio 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 % 
ˆFJN Catering Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2041       262.5       260.7       266.9       0.13%  

 
 
See accompanying notes to these consolidated financial statements.

F-21


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLED Lighting Enterprises LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/13/2026       22.5       21.7       18.8       0.01 % 
ˆJ. Harris Trucking, LLC     Truck Transportation       Term Loan       Prime plus 2.75%       5/13/2026       60.0       41.6       37.4       0.02 % 
ˆLuv 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 % 
ˆPumpkin 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 % 
ˆThe 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 % 
ˆSabir 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 % 
ˆGator 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 % 
ˆWarner 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 % 
ˆKeller, 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 % 
ˆMarc 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 % 
ˆMay-Craft Fiberglass Products
Inc
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       4/29/2041       247.5       245.0       253.3       0.12 % 
ˆAlpha Omega Trucking LLC     Truck Transportation       Term Loan       Prime plus 2.75%       4/29/2041       175.8       174.7       180.6       0.09 % 
ˆScoler 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 % 
ˆLoriet LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       4/29/2026       7.5       7.2       6.1       % 
ˆLa 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 % 
ˆEuro 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 % 
ˆHard 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 % 
ˆEmpowerschool 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 % 
ˆInner 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 % 
ˆAtlantic 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 % 
ˆCostume 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 % 
ˆPecos Inn LLC dba Econo Lodge     Accommodation       Term Loan       Prime plus 2.75%       4/28/2041       677.5       670.8       678.0       0.32 % 
ˆNorth American Manufacturing Company     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/28/2026       160.0       153.1       153.6       0.07 % 
ˆShepherd 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       % 
ˆKnowledge 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 % 
ˆGreen Country Filter Manufacturing LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       4/27/2026       84.3       80.6       69.8       0.03 % 
ˆAccent Comfort Services, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/26/2026       90.0       86.1       72.5       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-22


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆHomecare Casa Rhoda 123 Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2%       4/26/2041       675.0       667.4       642.3       0.31 % 
ˆMcIntosh 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 % 
ˆAutomotive 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 % 
ˆAAA 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       % 
ˆJande 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 % 
ˆMiguel 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 % 
ˆLE & 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 % 
ˆSushiya Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/12/2026       87.5       83.8       73.6       0.04 % 
ˆSierra 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 % 
ˆWaterfalls 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 % 
ˆKNS Early Learning Academy LLC     Social Assistance       Term Loan       Prime plus 2.75%       4/6/2041       51.0       50.5       49.4       0.02 % 
ˆDuke's Cleaners Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/31/2026       47.0       44.7       41.0       0.02 % 
ˆCameo 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 % 
ˆFarhad 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 % 
ˆChristian 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 % 
ˆVehicle 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 % 
ˆMen 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 % 
ˆGill 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 % 
ˆDana 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 % 
ˆNOSO Development, LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       3/30/2026       187.5       178.2       149.9       0.07 % 
ˆWyldewood Cellars, Inc.     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       3/30/2041       986.8       985.8       936.7       0.45 % 
ˆGordon 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 % 
ˆBeale 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 % 
ˆTom 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 % 
ˆMTS Car Service LLC     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       3/30/2026       10.5       10.0       8.4       % 
ˆAtlantis 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 % 
ˆBarrocas 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-23


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆVinmar 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 % 
ˆLust 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 % 
ˆMarathon Engineering
Corporation
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/28/2041       45.0       44.5       44.7       0.02 % 
ˆPHCDC1 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 % 
ˆReNew 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 % 
ˆRCB Enterprises, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/25/2026       56.3       53.5       45.0       0.02 % 
ˆRevolution 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 % 
ˆExcel RP Inc     Machinery Manufacturing       Term Loan       Prime plus 2.75%       3/25/2026       125.0       118.8       106.7       0.05 % 
ˆLowgap Grocery & Grill LLC     General Merchandise Stores       Term Loan       Prime plus 2.75%       3/24/2041       167.5       165.6       171.1       0.08 % 
ˆActKnowledge, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/24/2026       125.0       118.8       119.1       0.06 % 
ˆInternational Construction Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       3/24/2041       50.0       49.5       48.4       0.02 % 
ˆFlooring 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 % 
ˆActon 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 % 
ˆThe Youth Fountain LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/23/2026       47.5       45.2       38.0       0.02 % 
ˆMagnation 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 % 
ˆgrowth.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 % 
ˆPrecious 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 % 
ˆMedia 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 % 
ˆPro Tech Technology LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       3/18/2026       7.5       7.1       6.0       % 
ˆTaylors 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 % 
ˆERT 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 % 
ˆKekoa 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 % 
ˆMariam 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 % 
ˆBrian 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 % 
ˆAuto 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-24


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆDemand 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 % 
ˆLAN Doctors Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/16/2026       55.0       52.3       52.4       0.03 % 
ˆEvergreen 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 % 
ˆK 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 % 
ˆR & 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 % 
ˆHEWZ, 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 % 
ˆMustafa 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 % 
ˆCountry 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 % 
ˆWilban LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/11/2026       105.0       100.2       94.8       0.05 % 
ˆABCs & 123s Infant and Child Care Center LP     Social Assistance       Term Loan       Prime plus 2.75%       3/11/2026       11.3       10.7       9.0       % 
ˆAccuair 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 % 
ˆDupre Capital LLC dba Fastsigns     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/11/2026       58.4       55.5       46.7       0.02 % 
ˆMagill 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 % 
ˆFayette 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 % 
ˆState Painting & Decorating Co., Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/10/2026       103.8       98.6       83.0       0.04 % 
ˆB.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 % 
ˆStep Up Academy of the Arts
LLC
    Educational Services       Term Loan       Prime plus 2.75%       3/9/2026       8.0       7.6       6.4       % 
ˆA & A Auto Care LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/9/2026       12.2       11.5       11.0       0.01 % 
ˆFaith 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 % 
ˆSwerve Salon LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/8/2026       79.0       75.1       63.2       0.03 % 
ˆJ & W Hardwood Flooring Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/7/2026       7.5       7.1       6.0       % 
ˆLabmates 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 % 
ˆHueston and Company CPA LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/4/2026       8.3       7.7       6.7       % 
ˆAlmost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       3/3/2026       50.0       47.5       46.3       0.02 % 
ˆMiles 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 % 
ˆJohnson & 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 % 
ˆLiving Essentials HVAC Corp     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/28/2026       15.0       14.2       12.1       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-25


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆConsulting 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       % 
ˆDoxa 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 % 
ˆThe 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 % 
ˆDrug 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 % 
ˆPowerpits 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 % 
ˆBlackstones Hairdressing LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/23/2026       52.0       49.4       42.0       0.02 % 
ˆAaradhya 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 % 
ˆR-No-Landscaping LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/19/2026       8.3       7.8       6.7       % 
ˆBER 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 % 
ˆR & K Contracting Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/18/2026       15.8       15.0       14.5       0.01 % 
ˆPacific 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 % 
ˆB 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 % 
ˆGilmore 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 % 
ˆEi3 Corporation     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/12/2026       326.9       308.6       309.5       0.15 % 
ˆJersey 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 % 
ˆBase USA, Inc.     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       2/2/2026       50.0       47.2       47.4       0.02 % 
ˆNowatzke 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 % 
ˆZouk 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 % 
ˆTammy 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       % 
ˆSuzyQue'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 % 
ˆWildflour Bakery & Cafe LLC     Social Assistance       Term Loan       Prime plus 2.75%       1/28/2026       62.5       58.6       57.2       0.03 % 
ˆNew 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 % 
ˆOak Tree Storage LLC     Other Information Services       Term Loan       Prime plus 2.75%       1/19/2026       78.8       73.8       63.4       0.03 % 
ˆGendron 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 % 
ˆDolarian 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 % 
ˆLemonberry 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 % 
ˆMCF Forte LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/29/2025       18.8       17.5       14.9       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-26


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆPanditos LLC dba White Lotus Home     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       12/28/2025       15.9       14.8       12.5       0.01 % 
ˆBright 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 % 
ˆV2 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 % 
ˆRidge 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 % 
ˆ800 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 % 
ˆOptima Health Care Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/23/2025       62.5       58.2       58.4       0.03 % 
ˆB&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 % 
ˆJoyce 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 % 
ˆThe 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 % 
ˆPremier 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 % 
ˆHattingh 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 % 
ˆG.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 % 
ˆTrip 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 % 
ˆJay 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 % 
ˆAccent 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 % 
ˆAbbondanza 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 % 
ˆCapital Scrap Metal LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/18/2025       36.0       33.5       28.7       0.01 % 
ˆLabmates LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       12/18/2040       162.5       159.9       165.1       0.08 % 
ˆSourceco Limited Liability Company     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/17/2025       62.5       58.3       51.0       0.02 % 
ˆMustafa 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 % 
ˆLearning Skills LLC and Christopher Shrope     Educational Services       Term Loan       Prime plus 2.75%       12/17/2025       10.8       10.1       8.5       % 
ˆNew 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 % 
ˆMoments 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 % 
ˆSwalm 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 % 
ˆJAG 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 % 
ˆD&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%  

 
 
See accompanying notes to these consolidated financial statements.

F-27


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆAbitino'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 % 
ˆSDA 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 % 
ˆEvans & 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 % 
ˆBasista 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 % 
ˆDC 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 % 
ˆTri-State Remodeling & Investments, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/11/2025       15.9       14.8       14.3       0.01 % 
ˆAlexandra 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 % 
ˆAGR 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 % 
ˆENI 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 % 
ˆCares, Inc dba Dumpling Grounds Day Care Center     Social Assistance       Term Loan       Prime plus 2.75%       12/10/2025       7.5       7.0       6.9       % 
ˆCustom Exteriors, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/9/2025       100.0       93.2       81.5       0.04 % 
ˆSushiya, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/8/2025       108.8       101.3       88.9       0.04 % 
ˆMy 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 % 
ˆFood & 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 % 
ˆBlue Ox Trucking Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       12/4/2025       12.3       11.5       11.5       0.01 % 
ˆLC 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 % 
ˆAmerican 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 % 
ˆTariq, LLC dba 76 Food Mart     Gasoline Stations       Term Loan       Prime plus 2.75%       12/2/2040       375.0       368.9       371.4       0.18 % 
ˆ401 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 % 
ˆDelta Aggregate, LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       11/30/2025       100.0       95.4       95.7       0.05 % 
ˆBlock 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 % 
ˆHurshell 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 % 
ˆJapp 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 % 
ˆSmokeyard 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 % 
ˆAlejandro 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 % 
ˆState 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-28


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMedeiros 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 % 
ˆDWeb Studio, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/25/2025       11.3       10.4       8.7       % 
ˆSambella 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 % 
ˆPlay and Learn Child Care and School Inc     Social Assistance       Term Loan       Prime plus 2.75%       11/23/2025       11.1       10.3       10.3       % 
ˆRonny 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 % 
ˆHaven 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 % 
ˆCNYP 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 % 
ˆS.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 % 
ˆKey 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 % 
ˆHolloway & 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 % 
ˆRDT Enterprises, L.L.C.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/12/2025       22.5       20.8       19.5       0.01 % 
ˆE.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 % 
ˆGreen 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 % 
ˆJoseph 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 % 
ˆJumbomarkets 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 % 
ˆBisson Transportation Inc dba I & R Associates and Document Security     Truck Transportation       Term Loan       Prime plus 2.75%       10/30/2025       22.5       20.7       19.4       0.01 % 
ˆTop 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 % 
ˆL.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 % 
ˆWindsor Direct Distribution LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       10/26/2025       14.3       13.0       11.0       0.01 % 
ˆFinancial Network Recovery     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/26/2025       40.0       36.8       30.9       0.01 % 
ˆInsurance 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 % 
ˆJacksonville Beauty Institute Inc.     Educational Services       Term Loan       Prime plus 2.75%       10/23/2025       50.0       45.9       38.6       0.02 % 
ˆWerthan Packaging Inc.     Paper Manufacturing       Term Loan       Prime plus 2.75%       10/14/2025       1,162.5       1,104.0       1,030.3       0.49 % 
ˆTannehill 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 % 
ˆADMO 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-29


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆSCJEN 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 % 
ˆNaeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/30/2025       125.0       114.0       95.8       0.05 % 
ˆAccent 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 % 
ˆRecycling 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 % 
ˆBarub 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 % 
ˆR.H. Hummer Jr., Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       9/30/2025       375.0       354.3       338.4       0.16 % 
ˆBat 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 % 
ˆBinky's Vapes LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/30/2025       22.5       20.5       17.2       0.01 % 
ˆJoyce 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 % 
ˆGreensward of Marco Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/28/2040       87.5       85.7       84.4       0.04 % 
ˆRIM 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 % 
ˆThe 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 % 
ˆSouth 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 % 
ˆHemingway 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 % 
ˆDaniel 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 % 
ˆSandlot 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 % 
ˆYachting Solutions LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/25/2040       962.5       942.4       908.0       0.43 % 
ˆPrestigious LifeCare for Seniors LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025       9.8       9.0       8.2       % 
ˆSt 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 % 
ˆHagerstown 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 % 
ˆJ.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 % 
ˆRutledge 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 % 
ˆFinish 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 % 
ˆJ3K 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 % 
ˆStormrider 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 % 
ˆFrozen 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-30


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆNova Solutions Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/22/2040       320.0       313.3       311.9       0.15 % 
ˆPine Belt Wood Products LLC     Forestry and Logging       Term Loan       Prime plus 2.75%       9/22/2040       163.8       160.3       146.9       0.07 % 
ˆIIoka 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 % 
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/21/2025       50.0       45.6       40.6       0.02 % 
ˆMiJoy 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       % 
ˆVanderhoof LLC dba Soxfords     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/18/2025       15.9       14.5       12.2       0.01 % 
ˆNaeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/17/2025       125.0       114.0       95.8       0.05 % 
ˆImport 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 % 
ˆFirstVitals 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 % 
ˆJohnson 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 % 
ˆAlmost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       9/11/2025       62.5       57.0       56.3       0.03 % 
ˆVeliu LLC dba FASTSIGNS #15901     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/10/2025       50.0       46.2       40.0       0.02 % 
ˆB 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 % 
ˆGardner'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 % 
ˆAIG Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/4/2040       363.8       356.1       338.8       0.16 % 
ˆEmpower Autism Academy     Social Assistance       Term Loan       Prime plus 2.75%       9/4/2040       685.0       670.7       692.4       0.33 % 
ˆHigher Grounds Community Coffeehouse, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/2/2025       8.3       7.5       6.6       % 
ˆDelray Scrap Recycling LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       22.5       20.1       16.9       0.01 % 
ˆThe 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 % 
ˆLAN Doctors Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/28/2025       81.3       73.6       66.8       0.03 % 
ˆElite 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 % 
ˆZephyr 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 % 
ˆJ 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 % 
ˆTrading Group 3 Inc     Nonstore Retailers       Term Loan       Prime plus 2.75%       8/28/2025       50.0       45.3       38.0       0.02 % 
ˆB 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 % 
ˆGod 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 % 
ˆ3000 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-31


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆGDP 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 % 
ˆScreenmobile Management Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       8/14/2025       47.0       42.5       36.1       0.02 % 
ˆGold Jet Corp.     Couriers and Messengers       Term Loan       Prime plus 2.75%       8/14/2025       68.3       65.3       59.2       0.03 % 
ˆSKJ 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 % 
ˆLP 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 % 
ˆAdvanced Machine & Technology, Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025       90.3       81.1       74.8       0.04 % 
ˆPauley 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 % 
ˆBeale 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 % 
ˆForever & 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 % 
ˆC& 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 % 
ˆPooh'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 % 
ˆSmart 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 % 
ˆFree 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 % 
ˆMurrayville 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 % 
ˆUnion 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 % 
ˆThe Smile Place LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       283.9       276.6       282.4       0.14 % 
ˆBJ'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 % 
ˆJonathan 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 % 
ˆThrifty 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 % 
ˆAll 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 % 
ˆDanny 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 % 
ˆAnglin 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 % 
ˆAdvanced 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 % 
ˆSummit 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 % 
ˆMyclean Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/29/2025       15.9       14.2       12.7       0.01 % 
ˆE & 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-32


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆSofRep, 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 % 
ˆJihan 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 % 
ˆTJU-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 % 
ˆCEM 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 % 
ˆWolf 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 % 
ˆOhs Auto Body, Inc. dba Ohs Body Shop     Repair and Maintenance       Term Loan       7.2775%       6/25/2040       1,207.5       1,187.4       1,190.9       0.57 % 
ˆEvinger 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 % 
ˆAmboy 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 % 
ˆRichards 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 % 
ˆRJI Services, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/23/2025       22.5       19.9       17.8       0.01 % 
ˆReal 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 % 
ˆPM 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 % 
ˆKRN Logistics, LLC, Newsome Trucking, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2025       543.5       484.8       458.5       0.22 % 
ˆInverted 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 % 
ˆSquare 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 % 
ˆFlooring 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 % 
ˆAM 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 % 
ˆNelson 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 % 
ˆMirage 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 % 
ˆBizzare 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 % 
ˆAnturio 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 % 
ˆEldredge 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 % 
ˆNicor LLC dba Fibrenew Sacramento     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/5/2022       13.8       11.4       10.2       % 
ˆChitalian 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 % 
ˆViAr 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 % 
ˆVideo 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-33


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMedworxs LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/3/2025       125.0       111.5       100.4       0.05 % 
ˆDTM Parts Supply Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/2/2025       62.8       56.0       50.1       0.02 % 
ˆXCESSIVE 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       % 
ˆGod 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 % 
ˆVillela CPA PL     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/27/2025       9.0       8.0       7.3       % 
ˆPen 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 % 
ˆDouglas 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 % 
ˆCapstone 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 % 
ˆ15 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 % 
ˆE-Z Box Storage, Inc.     Real Estate       Term Loan       Prime plus 2.75%       5/11/2025       89.3       73.3       74.0       0.04 % 
ˆGuard Dogs MFS LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/8/2025       65.0       57.5       51.8       0.02 % 
ˆGeorge 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 % 
ˆSouth 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 % 
ˆMatthew 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 % 
ˆCares 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 % 
ˆRDRhonehouse 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 % 
ˆOrchid 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 % 
ˆRagazza 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 % 
ˆDiamond Solutions LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       4/21/2025       22.5       19.3       17.3       0.01 % 
ˆGiacchino Maritime Consultants
Inc
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/17/2025       22.5       19.8       17.7       0.01 % 
ˆSound 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 % 
ˆCarolina 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 % 
ˆFaramarz 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 % 
ˆAdvance 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 % 
ˆT 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 % 
ˆHAVANA 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-34


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMid-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 % 
ˆCopper 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 % 
ˆDelta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       3/30/2025       90.0       83.7       84.5       0.04 % 
ˆSunset Marine Resort LLC and GoXpeditions LLC     Accommodation       Term Loan       Prime plus 2.75%       3/27/2040       301.8       292.6       305.6       0.15 % 
ˆShorr 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 % 
ˆSouth 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 % 
ˆShellhorn 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 % 
ˆForesite 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 % 
ˆGeo 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 % 
ˆJoyce 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 % 
ˆZero-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 % 
ˆCarpet 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 % 
ˆLoriet LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/24/2025       12.0       10.5       9.4       % 
ˆShelton 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 % 
ˆJaymie 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 % 
ˆR & 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 % 
ˆMMS 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 % 
ˆRoyal 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 % 
ˆBND 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 % 
ˆDouglas 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 % 
ˆLuigi'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       % 
ˆCalhoun 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 % 
ˆRoad 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 % 
ˆBaystate Firearms and Training, LLC     Educational Services       Term Loan       Prime plus 2.75%       2/27/2025       63.4       54.7       49.3       0.02 % 
ˆKingseal 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 % 
ˆPace Motor Lines, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       2/26/2025       66.2       57.3       57.8       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-35


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆNelson Financial Services LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/24/2025       12.5       10.8       9.6       % 
ˆKiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       2/19/2040       61.8       59.7       59.6       0.03 % 
ˆTriangle 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 % 
ˆSilva 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 % 
ˆ740 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 % 
ˆKostekos 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 % 
ˆDuCharme 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 % 
ˆLimameno 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 % 
ˆPalmabak 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 % 
ˆJung Design Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/20/2022       8.4       6.5       5.8       % 
ˆGrand 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 % 
ˆBear 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 % 
ˆEvans and Paul LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/30/2024       223.8       190.5       188.1       0.09 % 
ˆFHJE 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 % 
ˆFirst 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 % 
ˆBowlerama 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 % 
ˆ401 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 % 
ˆThe 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 % 
ˆThermoplastic 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 % 
ˆCarolina 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 % 
ˆAtlantis 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 % 
ˆBeale 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 % 
ˆMM 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 % 
ˆThe 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 % 
ˆB.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 % 
ˆB & 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-36


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆAll 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 % 
ˆKemmer 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 % 
ˆTrading Group 3, Inc.     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/26/2024       22.5       19.0       17.0       0.01 % 
ˆThe 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 % 
ˆTeamnewman 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 % 
ˆDeRidder Chiropractic LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/25/2024       13.2       11.1       11.2       0.01 % 
ˆModern Manhattan LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       11/25/2024       220.0       185.8       167.8       0.08 % 
ˆStormrider 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 % 
ˆMeridian Hotels, LLC dba Best Western Jonesboro     Accommodation       Term Loan       Prime plus 2.75%       11/25/2039       228.0       220.6       230.3       0.11 % 
ˆLegacy 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 % 
ˆJ&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 % 
ˆDC 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 % 
ˆMLM 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 % 
ˆJEJE 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 % 
ˆJoey O's LLC and Jennifer Olszewski     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/7/2024       13.1       0.9       0.8       % 
ˆHeartland 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 % 
ˆGolden Transaction Corporation dba Bleh Sunoco     Gasoline Stations       Term Loan       Prime plus 2.75%       10/30/2039       156.7       150.7       155.4       0.07 % 
ˆSeelan Inc dba Candleridge
Market
    Gasoline Stations       Term Loan       Prime plus 2.75%       10/27/2039       90.5       87.0       87.3       0.04 % 
ˆ185 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 % 
ˆNavdeep 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 % 
ˆ3 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 % 
ˆOne Hour Jewelry Repair Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/14/2024       20.6       17.2       15.4       0.01 % 
ˆDNT Storage and Properties LLC     Real Estate       Term Loan       Prime plus 2.75%       10/10/2039       101.8       97.8       101.0       0.05 % 
ˆCapitol 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 % 
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/10/2024       187.5       157.1       145.6       0.07 % 
ˆReturn 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-37


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBoilermaker Industries LLC dba PostNet     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/9/2024       18.8       5.7       5.8       % 
ˆSmith 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 % 
ˆDoctors 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 % 
ˆMichael 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 % 
ˆSumad 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 % 
ˆRoccos 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 % 
ˆKeller 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 % 
ˆOrange 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 % 
ˆThe 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 % 
ˆKeys 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 % 
ˆGordon E Rogers dba Stonehouse Motor Inn     Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       57.5       55.2       57.6       0.03 % 
ˆAuto 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 % 
ˆColts 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 % 
ˆNorth 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 % 
ˆ6 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 % 
ˆR 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 % 
ˆAndrene'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 % 
ˆPlay 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 % 
ˆRyan 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 % 
ˆModern 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 % 
ˆTavern 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 % 
ˆRDT Enterprises LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/15/2027       162.8       143.6       143.5       0.07 % 
ˆAnimal 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 % 
ˆKW 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 % 
ˆIndy 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 % 
ˆB&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%  

 
 
See accompanying notes to these consolidated financial statements.

F-38


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆFeel 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 % 
ˆDelta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       8/28/2039       911.3       862.4       900.0       0.43 % 
ˆLamjam 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 % 
ˆOrange County Cleaning Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       8/27/2024       41.3       34.0       30.3       0.01 % 
ˆQycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/26/2024       121.0       99.7       94.5       0.05 % 
ˆAtlas 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 % 
ˆKatie 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 % 
ˆS&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 % 
ˆAlpha Preparatory Academy LLC     Social Assistance       Term Loan       Prime plus 2.75%       8/15/2039       145.2       139.7       145.8       0.07 % 
ˆAlmost 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 % 
ˆAGV 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 % 
ˆiFood, 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 % 
ˆ575 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 % 
ˆL&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 % 
ˆHoneyspot 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 % 
ˆMiss 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 % 
ˆAMG 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 % 
ˆHighway Striping Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/30/2024       53.1       43.0       42.7       0.02 % 
ˆLisle 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 % 
ˆHoneyspot 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 % 
ˆiFood, 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 % 
ˆFHJE 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 % 
ˆZinger 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 % 
ˆJPM 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 % 
ˆNikobella 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 % 
ˆBig 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-39


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ510 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 % 
ˆNirvi 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 % 
ˆHotels 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 % 
ˆGlobal Educational Delivery Services LLC     Educational Services       Term Loan       Prime plus 2.75%       6/16/2024       60.0       49.2       50.2       0.02 % 
ˆRainbow Dry Cleaners     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/13/2024       122.5       99.1       98.7       0.05 % 
ˆNVR 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 % 
ˆSico & 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 % 
ˆSujata 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 % 
ˆLong Island Barber + Beauty
LLC
    Educational Services       Term Loan       Prime plus 2.75%       6/2/2039       55.5       53.0       55.7       0.03 % 
ˆCJR 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 % 
ˆPocono 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 % 
ˆEGM 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 % 
ˆR. 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 % 
ˆWilton 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 % 
ˆJonesboro 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 % 
ˆUSI 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 % 
ˆBay 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 % 
ˆHae 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 % 
ˆMoochie's LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2024       100.5       81.6       80.6       0.04 % 
ˆThe 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 % 
ˆAS 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 % 
ˆENI 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 % 
ˆGerami 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 % 
ˆComplete Body & Paint, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/23/2039       20.8       19.9       21.1       0.01 % 
ˆIsland 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 % 
ˆWilshire Media Systems Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/17/2024       186.3       148.3       146.7       0.07 % 
ˆ1899 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-40


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆHodges 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 % 
ˆDantanna'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 % 
ˆLittle 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 % 
ˆRDT Enterprises, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2028       141.2       123.9       128.3       0.06 % 
ˆLittle 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 % 
ˆEagle 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 % 
ˆKemmer, 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 % 
ˆWilban LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/28/2039       427.5       407.2       429.7       0.21 % 
ˆLake 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 % 
ˆHascher Gabelstapler Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/26/2024       143.3       114.5       115.4       0.06 % 
ˆKnowledge 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 % 
ˆCormac 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 % 
ˆ636 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 % 
ˆKinisi, 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 % 
ˆSE 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 % 
ˆTortilla King Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2039       216.9       206.9       216.0       0.10 % 
ˆTortilla King, Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2029       1,033.1       926.1       943.6       0.45 % 
ˆBowl 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 % 
ˆAvayaan2 LLC dba Island Cove     Gasoline Stations       Term Loan       Prime plus 2.75%       3/7/2039       157.5       149.6       157.8       0.08 % 
ˆOnofrio'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 % 
ˆR & 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 % 
ˆSummit 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 % 
ˆ952 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 % 
ˆChoe 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 % 
ˆFaith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2039       214.2       203.6       213.3       0.10%  

 
 
See accompanying notes to these consolidated financial statements.

F-41


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ96 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 % 
ˆJWB 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 % 
ˆAwesome 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 % 
ˆ986 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 % 
ˆSovereign Communications LLC     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/7/2024       907.8       712.6       702.2       0.34 % 
ˆSarah 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 % 
ˆ3Fmanagement 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 % 
ˆJDR 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 % 
ˆIcore 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 % 
ˆCarl 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 % 
ˆNutmeg 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 % 
ˆCLU 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 % 
ˆShane 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 % 
ˆKK International Trading Corporation     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/23/2028       190.0       165.0       169.4       0.08 % 
ˆKurtis 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 % 
ˆMosley 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 % 
ˆLefont 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 % 
ˆPLES 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 % 
ˆTAK Properties LLC and Kinderland Inc     Social Assistance       Term Loan       Prime plus 2.75%       12/18/2038       405.0       383.2       402.7       0.19 % 
ˆAny 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 % 
ˆTOL 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 % 
ˆ8 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 % 
ˆ920 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 % 
ˆDKB Transport Corp     Truck Transportation       Term Loan       Prime plus 2.75%       12/5/2038       138.8       131.1       139.2       0.07%  

 
 
See accompanying notes to these consolidated financial statements.

F-42


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆFirm 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 % 
ˆSpectrum 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 % 
ˆBVIP 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 % 
ˆEco-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 % 
ˆWallace 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 % 
ˆAcuCall LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/21/2023       15.8       11.9       11.6       0.01 % 
ˆSeven 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 % 
ˆKids 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 % 
ˆYousef 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 % 
ˆHowell 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       % 
ˆPolpo 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 % 
ˆTwinsburg Hospitality Group LLC dba Comfort Suites     Accommodation       Term Loan       Prime plus 2.75%       10/31/2038       945.0       893.7       937.8       0.45 % 
ˆMid-Land Sheet Metal Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/31/2038       137.5       129.6       136.9       0.07 % 
ˆMaster 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 % 
ˆJanice 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 % 
ˆ1 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 % 
ˆMeridian Hotels LLC dba Best Western Jonesboro     Accommodation       Term Loan       Prime plus 2.75%       10/29/2038       664.5       625.3       664.1       0.32 % 
ˆNew 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 % 
ˆGreenbrier Technical Services,
Inc
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/24/2023       240.1       164.4       167.5       0.08 % 
ˆClairvoyant 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 % 
ˆKelly 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 % 
ˆCencon 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 % 
ˆOnofrios 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 % 
ˆDiscount 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 % 
ˆFirst 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-43


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLenoir 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 % 
ˆTop 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 % 
ˆMitchellville 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 % 
ˆGabrielle Realty, LLC     Gasoline Stations       Term Loan       Prime plus 2.75%       9/27/2038       757.6       711.3       746.0       0.36 % 
ˆAnthony 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 % 
ˆEastside 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 % 
ˆSoutheast 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 % 
ˆHJ & 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 % 
ˆKiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       9/25/2038       89.3       85.6       89.5       0.04 % 
ˆDiamond Memorials Incorporated     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/25/2023       14.3       9.7       9.5       % 
ˆSerious-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 % 
ˆFaith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/20/2038       268.4       252.8       266.1       0.13 % 
ˆWestville Seafood LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/19/2038       112.3       105.4       110.7       0.05 % 
ˆMaynard 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 % 
ˆGrafio 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 % 
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/12/2028       54.8       46.9       47.7       0.02 % 
ˆThe 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 % 
ˆProspect Kids Academy Inc     Educational Services       Term Loan       Prime plus 2.75%       9/11/2038       124.3       116.4       122.8       0.06 % 
ˆAlma 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 % 
ˆB 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 % 
ˆSchmaltz 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 % 
ˆExcel RP Inc     Machinery Manufacturing       Term Loan       Prime plus 2.75%       8/30/2023       130.3       96.0       97.5       0.05 % 
ˆIlOKA 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 % 
ˆACI Northwest Inc.     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       8/30/2023       906.3       452.8       459.3       0.22 % 
ˆSpectrum Radio Fairmont, LLC     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       8/30/2023       187.5       164.3       167.0       0.08 % 
ˆGulfport 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-44


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆRamard 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 % 
ˆRM 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 % 
ˆJSIL 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 % 
ˆIsland 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 % 
ˆCaribbean 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 % 
ˆ209 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 % 
ˆMajestic 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 % 
ˆDaniel 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       % 
ˆAngkor Restaurant Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/19/2038       93.0       87.1       92.1       0.04 % 
ˆHarbor 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 % 
ˆTri 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 % 
ˆMorning 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 % 
ˆMaxiflex LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/28/2023       153.5       110.5       112.9       0.05 % 
ˆGIA 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 % 
ˆJRA 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 % 
ˆ2161 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 % 
ˆCBlakeslee 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 % 
ˆKDP 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 % 
ˆElite Structures Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       6/12/2038       932.8       847.9       904.0       0.43 % 
ˆWillowbrook 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 % 
ˆAbsolute 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 % 
ˆRKP Service dba Rainbow
Carwash
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/31/2023       300.0       216.7       218.1       0.10 % 
ˆRXSB, 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 % 
ˆGregory 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 % 
ˆRyan 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-45


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆPowerWash 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 % 
ˆPeanut Butter & Co., Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       4/30/2023       100.0       70.3       70.6       0.03 % 
ˆBrothers International Desserts     Food Manufacturing       Term Loan       Prime plus 2.75%       4/26/2023       230.0       162.6       164.9       0.08 % 
ˆKidrose, LLC dba Kidville Riverdale     Educational Services       Term Loan       Prime plus 2.75%       4/22/2023       78.8       56.3       56.9       0.03 % 
ˆVernon & 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 % 
ˆ1258 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 % 
ˆCapital 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 % 
ˆMRM 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 % 
ˆNeyra 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 % 
ˆA & 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 % 
ˆXela 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 % 
ˆAmerican 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 % 
ˆMichael 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 % 
ˆM & 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 % 
ˆTruth 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 % 
ˆJ. 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 % 
ˆStellar Environmental LLC     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       3/18/2023       56.3       39.4       40.1       0.02 % 
ˆSound 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 % 
ˆGolden Gate Lodging LLC     Accommodation       Term Loan       Prime plus 2.75%       3/12/2038       115.0       106.8       113.4       0.05 % 
ˆBakhtar 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 % 
ˆRiver Club Golf Course Inc dba The River Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2038       475.2       440.2       467.2       0.22 % 
ˆOsceola 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 % 
ˆJava Warung, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/19/2038       51.0       47.3       50.3       0.02 % 
ˆNancy & 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 % 
ˆOrient 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 % 
ˆKnits R Us, Inc. dba NYC Sports     Textile Mills       Term Loan       Prime plus 2.75%       2/11/2038       125.0       116.0       123.6       0.06%  

 
 
See accompanying notes to these consolidated financial statements.

F-46


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆNorth 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 % 
ˆMJD 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 % 
ˆSherill 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 % 
ˆElegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2022       97.5       66.0       66.2       0.03 % 
ˆMacho 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 % 
ˆWI130, 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 % 
ˆBabie 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 % 
ˆJohn 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 % 
ˆPolpo 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 % 
ˆMartin 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 % 
ˆUnited Woodworking, Inc     Wood Product Manufacturing       Term Loan       6%       12/20/2022       17.3       11.7       11.9       0.01 % 
ˆPioneer 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 % 
ˆEzzo 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 % 
ˆThe 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 % 
ˆCheryle 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 % 
ˆAegis 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 % 
ˆDaniel 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 % 
ˆD&L Rescources, Inc. dba The
UPS Store
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/27/2022       9.8       6.5       6.5       % 
ˆRichmond 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 % 
ˆDRV 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 % 
ˆClean 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       % 
ˆU & 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 % 
ˆPioneer Windows Manufacturing Corp, Pioneer Windows     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       11/21/2022       275.0       184.0       186.0       0.09 % 
ˆR & 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 % 
ˆSt 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 % 
ˆHi-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%  

 
 
See accompanying notes to these consolidated financial statements.

F-47


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆReidville Hydraulics Mfg Inc dba Summit     Machinery Manufacturing       Term Loan       Prime plus 2.75%       11/2/2037       265.9       245.2       258.7       0.12 % 
ˆBig 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 % 
ˆLA 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 % 
ˆATC 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 % 
ˆUniversity 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 % 
ˆForno 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 % 
ˆLaSalle 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 % 
ˆO'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 % 
ˆMichael 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 % 
ˆAJK 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 % 
ˆNew 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 % 
ˆSuncoast 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 % 
ˆHofgard & 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 % 
ˆGeorgia Safe Sidewalks LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/27/2022       15.0       9.4       9.5       % 
ˆScoville 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 % 
ˆCentral 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 % 
ˆWPI, LLC     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       6/29/2024       129.5       92.0       94.2       0.05 % 
ˆHavana 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 % 
ˆJenkins-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 % 
ˆKIND-ER-ZZ Inc dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/15/2022       50.0       31.2       31.6       0.02 % 
ˆGraphish 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 % 
ˆALF, 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 % 
ˆCraig 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 % 
ˆLefont 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 % 
ˆChristou 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 % 
ˆTracey 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-48


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBisson Transportation, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2037       588.1       553.0       588.9       0.28 % 
ˆBisson 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 % 
ˆFair 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 % 
ˆTanner 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       % 
ˆZane 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 % 
ˆIndoor Playgrounds Limited Liability Company dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       4/5/2022       19.5       8.4       8.6       % 
ˆBrandywine 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 % 
ˆAccess Staffing, LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/30/2022       187.5       113.6       114.8       0.05 % 
ˆWillow 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 % 
ˆManuel 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 % 
ˆShweiki 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 % 
ˆATC Fitness, LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2022       10.2       6.1       6.2       % 
ˆATI Jet, Inc.     Air Transportation       Term Loan       Prime plus 2.75%       12/28/2026       852.8       643.1       664.9       0.32 % 
ˆJ. 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 % 
ˆK'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 % 
ˆ15 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 % 
ˆM & 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 % 
ˆTaylor Transport, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       12/8/2021       515.5       219.2       223.1       0.11 % 
ˆThomas 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 % 
ˆMRM 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 % 
ˆK9 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 % 
ˆ28 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 % 
ˆPTK, 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 % 
ˆ39581 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 % 
ˆ39581 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 % 
ˆRobert 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-49


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBig 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 % 
ˆPolymer 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 % 
ˆEquity 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 % 
ˆBryan 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 % 
ˆSBR 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 % 
ˆMichael 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 % 
ˆQycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/19/2021       187.5       97.1       98.2       0.05 % 
ˆTrademark 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 % 
ˆValiev 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 % 
ˆA & 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 % 
ˆLaHoBa, 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 % 
ˆKelly Chon LLC dba Shi-Golf     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       7/29/2021       17.5       6.9       7.0       % 
ˆMTV 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 % 
ˆLavertue 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 % 
ˆLisle 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 % 
ˆPierce 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 % 
ˆMajor Queens Body & Fender Corp     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/10/2021       28.6       15.2       15.4       0.01 % 
ˆJ&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 % 
ˆPeanut 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 % 
ˆDemand 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       % 
ˆModern 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 % 
ˆMusic 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 % 
ˆProfile 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 % 
ˆNorthwind 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-50


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMichael 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 % 
ˆActknowledge, Inc dba Actknowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/21/2021       57.3       29.0       29.4       0.01 % 
ˆFood & 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       % 
ˆKey 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 % 
ˆStephen 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 % 
ˆSuzyQue’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 % 
ˆLittle 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 % 
ˆSeagate 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 % 
ˆPatrageous 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 % 
ˆShree 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 % 
ˆLodin 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 % 
ˆRobert 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 % 
ˆAny 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 % 
ˆWest 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 % 
ˆLincoln Park Physical Therapy     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/20/2020       43.5       19.9       20.2       0.01 % 
ˆK9 Bytes, Inc & Epazz, Inc     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       9/30/2020       18.5       8.7       8.8       % 
ˆElan 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 % 
ˆSuccess 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 % 
ˆModern Manhattan, LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       9/20/2020       204.0       92.5       93.5       0.04 % 
ˆDirk'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       % 
ˆRudy & 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 % 
ˆNewsome Trucking Inc and Kevin Newsome     Truck Transportation       Term Loan       Prime plus 2.75%       9/2/2035       423.1       208.3       221.6       0.11 % 
ˆCalifornia College of Communications, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/2/2020       172.5       79.7       80.5       0.04 % 
ˆDDLK 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       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-51


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆPlanet 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 % 
ˆMembers Only Software     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2020       40.3       17.6       17.8       0.01 % 
ˆActKnowledge, Inc dba ActKnowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/30/2020       50.0       21.4       21.6       0.01 % 
ˆI-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 % 
ˆWeaverVentures, Inc dba The UPS Store     Postal Service       Term Loan       Prime plus 2.75%       7/28/2020       23.8       10.3       10.5       0.01 % 
ˆCJ Park Inc. dba Kidville Midtown West     Educational Services       Term Loan       Prime plus 2.75%       6/25/2020       26.4       8.9       9.0       % 
ˆZouk, 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 % 
ˆTanner 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 % 
ˆM & 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 % 
ˆExcel 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       % 
ˆValleyStar, Inc. dba BrightStar Healthcare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       7.5       3.2       3.2       % 
ˆDiag, LLC dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/21/2020       37.5       15.6       15.8       0.01 % 
ˆM & 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 % 
ˆNew 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       % 
ˆCocoa 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       % 
ˆVortex Automotive LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/5/2035       76.6       65.8       70.1       0.03 % 
ˆATC 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       % 
ˆLahoba, 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 % 
ˆMusic 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 % 
ˆAnimal 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 % 
ˆDavid 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       % 
ˆCMA 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 % 
ˆKMC 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 % 
ˆDemand Printing Solutions, Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/12/2019       10.0       3.6       3.7       % 
ˆPlanet 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 % 
ˆDemand 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-52


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆSupreme Screw Products     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/17/2019       308.2       87.6       88.4       0.04 % 
ˆGray Tree Service, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2018       50.0       12.4       12.5       0.01 % 
ˆEnvy Salon & Spa LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/4/2018       20.3       4.9       4.9       % 
ˆGourmet to You, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2019       12.1       3.3       3.3       % 
ˆThe 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 % 
ˆGrapevine Professional Services, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       1/22/2019       8.2       2.0       2.0       % 
ˆInflate World Corporation     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/30/2018       7.5       1.3       1.3       % 
ˆPeter 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 % 
ˆDream 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 % 
ˆCBA 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 % 
ˆGilbert Chiropractic Clinic, Inc.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/7/2018       22.5       4.0       4.1       % 
ˆD & D's Divine Beauty School of Esther, LLC     Educational Services       Term Loan       6%       8/1/2031       57.7       51.3       54.1       0.03 % 
ˆDaniel 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       % 
ˆBurks & 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 % 
ˆZog Inc.     Other Information Services       Term Loan       6%       3/17/2018       97.5       62.1       62.3       0.03 % 
ˆSaan 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 % 
ˆEnewhere Custom Canvas, LLC     Textile Product Mills       Term Loan       Prime plus 2.75%       2/15/2018       12.0       1.9       1.9       % 
ˆA & 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 % 
ˆAll American Printing     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/26/2032       69.8       37.6       39.8       0.02 % 
ˆSeo's Paradise Cleaners, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/19/2018       9.8       0.6       0.6       % 
ˆMargab, Inc. dba Smoothie King     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/28/2017       44.0       5.7       5.7       % 
ˆRCB Enterprises, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2017       21.2       3.4       3.4       % 
ˆTimothy 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       % 
ˆParties 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-53


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTammy's Bakery, Inc. dba Tammy's Bakery     Food Manufacturing       Term Loan       Prime plus 2.75%       12/10/2017       71.8       9.9       10.0       % 
ˆMaria 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       % 
ˆMJ Mortgage & Tax Services,
Inc.
    Credit Intermediation and Related Activities       Term Loan       Prime plus 2.75%       11/14/2017       6.9       0.4       0.4       % 
ˆKings Laundry, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/30/2017       64.5       7.1       7.1       % 
ˆQuality 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       % 
ˆLouis 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       % 
ˆ1911 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 % 
ˆMetano 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 % 
ˆMala 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       % 
ˆTwietmeyer Dentistry PA     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2017       148.9       9.9       9.9       % 
ˆWater Works Laundromat, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.25%       9/7/2027       267.3       184.0       187.1       0.09 % 
ˆDave 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 % 
ˆNo Thirst Software LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/26/2017       6.8       0.2       0.2       % 
ˆCCIPTA, LLC     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       1/17/2017       47.0       0.2       0.2       % 
ˆGill 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 % 
ˆSpain Street LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/29/2017       63.0       0.9       0.9       % 
ˆKyoshi Enterprises, LLC     Educational Services       Term Loan       Prime plus 2.75%       12/29/2016       22.5                   % 
ˆNora 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       % 
ˆSmooth Grounds, Inc.     Food Services and Drinking Places       Term Loan       7.75%       12/31/2018       64.5       30.6       30.8       0.01 % 
ˆFran-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 % 
ˆHead To Toe Personalized Pampering, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/27/2031       52.0       9.0       9.5       % 
ˆMaxwell Place, LLC     Nursing and Residential Care Facilities       Term Loan       6.5%       12/31/2018       1,076.8       772.5       779.2       0.37 % 
ˆChristopher F. Bohon & Pamela D. Bohon     Social Assistance       Term Loan       Prime plus 2.75%       10/28/2026       14.2       3.2       3.4       % 
ˆShree Om Lodging, LLC dba Royal Inn     Accommodation       Term Loan       Prime plus 2.75%       5/2/2030       333.3       64.1       67.4       0.03 % 
ˆPedzik's Pets, LLC     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       3/31/2030       53.5       9.0       9.4       % 
ˆNancy 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 % 
ˆMoonlight Multi Media Production, Inc.     Other Information Services       Term Loan       5.3%       2/1/2025       19.7       3.3       3.4       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-54


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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 % 
ˆMcCallister 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 % 
ˆComputer 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       % 
ˆChong 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 % 
ˆWest 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 % 
ˆCenter-Mark Car Wash, Ltd     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/18/2024       221.3       27.9       28.7       0.01 % 
ˆShuttle 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 % 
ˆMin Hui Lin     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2028       134.3       17.5       18.2       0.01 % 
ˆDelta 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 % 
ˆAuto Sales, Inc.     Motor Vehicle and Parts Dealers       Term Loan       6%       8/17/2023       75.0       7.8       8.0       % 
ˆB & 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 % 
ˆRAB Services, Inc. & Professional Floor Installations     Specialty Trade Contractors       Term Loan       Prime plus 2.5%       1/31/2023       62.5       7.0       7.1       % 
ˆRalph Werner dba Werner Transmissions     Gasoline Stations       Term Loan       Prime plus 2.75%       12/29/2021       26.6       2.3       2.4       % 
ˆTaste 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       % 
ˆM. Krishna, Inc. dba
Super 8 Motel
    Accommodation       Term Loan       Prime plus 2%       3/20/2025       250.0       9.4       9.5       % 
ˆRobin 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 % 
ˆOrthoQuest, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2%       3/12/2022       56.8       4.3       4.3       % 
ˆCPN 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 % 
ˆTrack Side Collision & Tire, Inc.     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/16/2025       44.8       4.9       5.0       % 
ˆDuttakrupa, LLC dba Birmingham Motor Court     Accommodation       Term Loan       Prime plus 2.25%       9/8/2023       98.8       12.2       12.3       0.01 % 
ˆDeesha Corporation, Inc. dba Best Inn & Suites     Accommodation       Term Loan       Prime plus 2.25%       2/14/2025       250.0       27.4       27.8       0.01 % 
ˆMaruti, 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 % 
ˆLABH, Inc.     Accommodation       Term Loan       Prime plus 2.25%       9/27/2024       555.0       40.8       41.3       0.02 % 
ˆRandall 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       % 
ˆGain Laxmi, Inc. dba
Super 8 Motel
    Accommodation       Term Loan       Prime plus 2.25%       5/31/2023       202.5       20.0       20.2       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-55


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆNaseeb Corporation     Accommodation       Term Loan       Prime plus 2.25%       3/31/2024       402.5       29.8       30.2       0.01 % 
ˆStillwell Ave Prep School     Social Assistance       Term Loan       Prime plus 2.75%       1/14/2023       72.0       6.4       6.5       % 
ˆKaris, Inc.     Accommodation       Term Loan       Prime plus 2%       12/22/2023       148.8       13.4       13.4       0.01 % 
ˆFive Corners, Ltd.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2019       85.0       4.7       4.8       % 
ˆAlyssa Corp dba Knights Inn     Accommodation       Term Loan       Prime plus 2.25%       9/30/2023       350.0       42.0       42.4       0.02 % 
ˆBhailal Patel dba New Falls
Motel
    Accommodation       Term Loan       Prime plus 2.75%       3/27/2023       100.0       3.7       3.8       % 
ˆPegasus Automotive, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/23/2022       112.5       10.9       11.2       0.01 % 
ˆDelyannis Iron Works     Fabricated Metal Product Manufacturing       Term Loan       6%       12/8/2022       16.0       1.0       1.1       % 
ˆP. 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       % 
ˆGolden Elevator Co., Inc.     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       1/31/2022       50.0       0.4       0.4       % 
ˆRJS 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)
                                                                 
ˆ*200 North 8th Street Associates LLC and Enchanted Acres     Food Manufacturing       Term Loan       Prime plus 2.75%       5/4/2028     $ 468.8     $ 469.3     $ 441.3       0.21 % 
ˆ*214 North Franklin, LLC and Winter Ventures, Inc.     Nonstore Retailers       Term Loan       6%       11/29/2037       81.7       81.7       29.7       0.01 % 
ˆ*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       % 
ˆ*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 % 
ˆ*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 % 
ˆ*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 % 
ˆ*Fieldstone Quick Stop LLC Barber Investments LLC     Gasoline Stations       Term Loan       6%       9/30/2038       646.4       648.0       327.6       0.16 % 
ˆ*Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar     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       % 
ˆ*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%  

 
 
See accompanying notes to these consolidated financial statements.

F-56


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ*Chickamauga Properties, Inc. and MSW Enterprises, LLP     Amusement, Gambling, and Recreation Industries       Term Loan       6.25%       10/19/2022       43.4       43.5             % 
ˆ*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 % 
ˆ*Custom Software, Inc. a Colorado Corporation dba M-33 Access     Broadcasting (except Internet)       Term Loan       6.25%       4/30/2022       94.1       94.3             % 
ˆ*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 % 
ˆ*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 % 
ˆ*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 % 
ˆ*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 % 
ˆ*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 % 
ˆ*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       % 
ˆ*Europlast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       6%       9/26/2022       316.1       316.9       36.5       0.02 % 
ˆ*Europlast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       6%       5/31/2023       155.2       155.6       114.8       0.05 % 
ˆ*Event Mecca LLC     Other Information Services       Term Loan       6%       4/10/2023       12.6       12.6       9.4       % 
ˆ*EZ Towing, Inc.     Support Activities for Transportation       Term Loan       6%       1/31/2023       123.2       123.5       107.1       0.05 % 
ˆ*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 % 
ˆ*Gator Communications Group LLC dba Harvard
Printing Group
    Printing and Related Support Activities       Term Loan       6.25%       4/25/2022       157.4       157.8             % 
ˆ*Gator Communications Group, LLC dba Harvard
Printing Group
    Printing and Related Support Activities       Term Loan       6.25%       3/27/2023       13.3       13.3             % 
ˆ*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 % 
ˆ*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 % 
ˆ*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 % 
ˆ*Home Again Restaurant LLC     Food Services and Drinking Places       Term Loan       6.25%       6/30/2040       58.7       58.8       52.9       0.03 % 
ˆ*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 % 
ˆ*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 % 
ˆ*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%  

 
 
See accompanying notes to these consolidated financial statements.

F-57


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
*Jenny's Wunderland, Inc.     Social Assistance       Term Loan       6%       6/29/2036       149.7       150.1       52.2       0.02 % 
ˆ*Karykion, Corporation dba Karykion Corporation     Professional, Scientific, and Technical Services       Term Loan       6%       6/28/2022       144.4       144.8       140.4       0.07 % 
ˆ*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       % 
ˆ*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 % 
ˆ*Las Torres Development LLC dba Houston Event Centers     Real Estate       Term Loan       6%       8/27/2028       51.0       51.0       4.0       % 
ˆ*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 % 
ˆ*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 % 
ˆ*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 % 
ˆ*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       % 
ˆ*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 % 
ˆ*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 % 
ˆ*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       % 
ˆ*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       368.5       0.18 % 
ˆ*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             % 
ˆ*Shivsakti, LLC dba Knights Inn     Accommodation       Term Loan       6.25%       12/20/2032       69.7       69.9       62.9       0.03 % 
ˆ*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       % 
ˆ*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       % 
ˆ*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 % 
ˆ*Winter Ventures Inc and 214 N Franklin LLC     Nonstore Retailers       Term Loan       6%       4/29/2024       56.5       56.6             —%  

 
 
See accompanying notes to these consolidated financial statements.

F-58


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ*Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       6%       12/23/2024       149.1       149.3             % 
ˆ*Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       6%       4/3/2029       134.4       134.5             % 
ˆ*Wired LLC and Moulison North Corporation     Specialty Trade Contractors       Term Loan       6.25%       6/30/2024       325.2       326.0       306.6       0.15 % 
ˆ*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 % 
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%  

 
 
See accompanying notes to these consolidated financial statements.

F-59


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(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       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 % 
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%  

 
 
See accompanying notes to these consolidated financial statements.

F-60


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
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 % 

ˆ 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 3.

 
 
See accompanying notes to these consolidated financial statements.

F-61


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

(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. See Notes 5 and 16 in the accompanying notes to the consolidated financial statements for transactions during the year ended December 31, 2016 with affiliates the Company is deemed to control.
(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 Holdco1., 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.

 
 
See accompanying notes to these consolidated financial statements.

F-62


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2015
(In Thousands)

               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Performing SBA Unguaranteed Investments(1)
                                                                       
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     $ 1,250.0     $ 1,056.6       0.52 % 
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       1,233.3       1,252.8       0.61 % 
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       1,233.3       1,253.1       0.61 % 
The Camera House Inc     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       1,250.0       1,226.7       1,116.1       0.55 % 
KW Zion, LLC and Key West Gallery Inc     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/12/2039       1,250.0       1,223.7       1,207.8       0.59 % 
Ohs Auto Body, Inc. dba Ohs Body Shop     Repair and Maintenance       Term Loan       7.22%       6/25/2040       1,207.5       1,205.1       1,151.0       0.56 % 
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       1,204.1       1,168.9       0.57 % 
Grey Light Realty, LLC (EPC) NH Precision Metal Fabricators Inc (OC)     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       8/21/2039       1,226.0       1,198.3       1,170.7       0.57 % 
Bowlerama Inc     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/24/2039       1,202.5       1,184.5       1,202.6       0.59 % 
Foresite Realty Partners LLC and Foresite Real Estate Holdings
LLC
    Real Estate       Term Loan       Prime plus 2.75%       3/27/2025       1,238.3       1,176.0       977.4       0.48 % 
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       1,165.5       978.9       0.48 % 
Werthan Packaging Inc.     Paper Manufacturing       Term Loan       Prime plus 2.75%       10/14/2025       1,162.5       1,162.5       1,078.2       0.53 % 
Shellhorn and Hill Inc dba Total Fleet Service     Nonstore Retailers       Term Loan       Prime plus 2.75%       3/27/2040       1,040.3       1,028.0       945.0       0.46 % 
G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC and ANA     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/18/2040       1,025.0       1,025.0       1,044.6       0.51 % 
Shweiki Media, Inc. dba Study Breaks Magazine     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       3/22/2027       1,178.8       976.2       991.8       0.49 % 
Tortilla King, Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2029       1,033.1       975.2       946.5       0.46 % 
Yachting Solutions LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/25/2040       962.5       959.7       912.7       0.45 % 
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       918.3       944.9       0.46 % 
Twinsburg Hospitality Group LLC dba Comfort Suites     Accommodation       Term Loan       Prime plus 2.75%       10/31/2038       945.0       910.1       907.5       0.44 % 
Calhoun Satellite Communications Inc and Transmission Solutions Group     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/27/2025       952.8       898.1       782.6       0.38 % 
Nirvi Enterprises LLC dba Howard Johnson/Knights Inn     Accommodation       Term Loan       Prime plus 2.75%       6/17/2039       920.3       896.6       922.6       0.45 % 
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       885.1       909.0       0.45 % 
P and D Enterprises Ind dba Wallaby’s Liquor Warehouse     Food and Beverage Stores       Term Loan       Prime plus 2.75%       8/28/2040       888.9       885.0       865.8       0.42 % 
Nutmeg North Associates LLC (OC) Steeltech Building Products Inc     Construction of Buildings       Term Loan       Prime plus 2.75%       12/31/2038       897.8       883.1       876.8       0.43 % 

 
 
See accompanying notes to these consolidated financial statements.

F-63


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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. and Gates Investments and Wade Ga     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/22/2028     $ 882.0     $ 882.0     $ 885.3       0.43 % 
Havana Central (NY) 5, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/29/2022       1,166.8       878.5       887.2       0.44 % 
New York Home Health Care Equipment, LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/16/2025       875.0       875.0       847.9       0.42 % 
Elite Structures Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       6/12/2038       932.8       873.5       907.2       0.44 % 
Delta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       8/28/2039       911.3       871.5       885.0       0.43 % 
Honeyspot Investors LLP and Pace Motor Lines Inc     Truck Transportation       Term Loan       Prime plus 2.75%       6/30/2039       875.3       854.5       876.2       0.43 % 
2161 Highway 6 Trail, LLC, (EPC)
R. H. Hummer JR., Inc.
    Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2026       1,250.0       842.8       858.4       0.42 % 
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       839.8       855.8       0.42 % 
Hotels of North Georgia LLC dba Comfort Inn and Suites     Accommodation       Term Loan       Prime plus 2.75%       6/17/2039       837.5       816.0       838.7       0.41 % 
Shepher Distr’s and Sales Corp and The Lederer Industries Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/30/2023       1,050.0       801.8       805.3       0.39 % 
Maxwell Place, LLC     Nursing and Residential Care Facilities       Term Loan       6%       2/28/2016       1,076.8       801.3       802.4       0.39 % 
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       800.4       804.9       0.39 % 
Sovereign Communications LLC     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/7/2024       907.8       784.1       722.7       0.35 % 
CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial
Services
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/18/2028       875.0       780.5       797.9       0.39 % 
T and B Boots Inc dba Takkens     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       3/31/2025       807.8       767.6       720.3       0.35 % 
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       760.1       680.7       0.33 % 
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       751.5       695.2       0.34 % 
D.C. Group, Inc. dba Unique Setting of New York     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/21/2025       750.0       750.0       665.7       0.33 % 
Gabrielle Realty, LLC     Gasoline Stations       Term Loan       Prime plus 2.75%       9/27/2038       757.6       726.6       724.4       0.36 % 
Keys Phase One LLC dba The Grand Guesthouse     Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       736.3       720.8       712.2       0.35 % 
Top Cat Ready Mix, LLC, Ples Investments LLC, and Pappy’s Sand and     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/28/2025       711.3       707.8       618.5       0.30 % 
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       706.5       737.4       0.36 % 
J&D Resources, LLC dba Aqua Science     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/21/2024       767.9       701.8       596.5       0.29 % 
Almost Home Property LLC and Almost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       8/7/2039       715.8       700.7       700.1       0.34 % 
Contract Packaging Services Inc dba Superior Pack Group     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/21/2023       851.8       694.6       686.6       0.34%  

 
 
See accompanying notes to these consolidated financial statements.

F-64


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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     $ 692.9     $ 689.2       0.34 % 
ATI Jet, Inc.     Air Transportation       Term Loan       Prime plus 2.75%       12/28/2026       852.8       688.4       700.6       0.34 % 
Scent-Sation Inc     Textile Product Mills       Term Loan       Prime plus 2.75%       9/18/2040       687.5       685.5       693.5       0.34 % 
Empower Autism Academy     Social Assistance       Term Loan       Prime plus 2.75%       9/4/2040       685.0       683.0       695.9       0.34 % 
C & G Engines Corp.     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       9/30/2021       1,041.5       675.1       676.2       0.33 % 
Accent Tag and Label Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/18/2040       665.8       665.8       652.7       0.32 % 
IIoka Inc dba New Cloud
Networks
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/21/2025       665.0       658.9       554.7       0.27 % 
Fieldstone Quick Stop LLC (OC) Barber Investments LLC (EPC) Thadius M B     Gasoline Stations       Term Loan       Prime plus 2.75%       9/30/2038       676.3       658.3       646.2       0.32 % 
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       655.6       662.7       0.32 % 
Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC     Truck Transportation       Term Loan       Prime plus 2.75%       3/31/2024       1,250.0       652.9       656.5       0.32 % 
LA Diner Inc dba Loukas L A
Diner
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/28/2037       677.5       641.2       666.2       0.33 % 
Meridian Hotels LLC dba Best Western Jonesboro     Accommodation       Term Loan       Prime plus 2.75%       10/29/2038       664.5       637.5       654.4       0.32 % 
St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn     Accommodation       Term Loan       Prime plus 2.75%       9/24/2040       625.0       623.2       610.9       0.30 % 
iFood, Inc. dba Steak N Shake     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2039       629.8       613.6       597.3       0.29 % 
Colts V LLC and Nowatzke Service Center, Inc dba Nowatzke Truck & Trai     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/26/2039       601.8       589.1       579.5       0.28 % 
Northeast Arkansas Pizza, Inc. dba Domino’s Pizza     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/23/2025       608.0       589.1       493.4       0.24 % 
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       574.0       479.7       0.24 % 
Master CNC Inc & Master Properties LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2038       596.6       573.6       562.8       0.28 % 
CLU Amboy, LLC (EPC) and Amboy Group, LLC (OC) dba Tommy Moloney’s     Food Manufacturing       Term Loan       Prime plus 2.75%       12/27/2023       656.3       565.8       568.3       0.28 % 
IlOKA Inc dba Microtech Tel and NewCloud Networks     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2023       687.5       565.5       534.2       0.26 % 
ACI Northwest Inc.     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       8/30/2023       906.3       560.8       548.7       0.27 % 
Bisson Transportation, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2037       588.1       557.0       577.2       0.28 % 
Richards Plumbing and Heating Co., Inc. dba Richards Mechanical     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/23/2040       551.8       547.7       556.6       0.27 % 
B and J Catering Inc dba Culinary Solutions     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/27/2040       547.5       547.5       523.5       0.26 % 
CML RW Security, LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       3/20/2025       575.0       546.1       453.9       0.22%  

 
 
See accompanying notes to these consolidated financial statements.

F-65


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/23/2040     $ 1,189.5     $ 546.1     $ 556.5       0.27 % 
Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC)     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2039       538.8       536.3       505.9       0.25 % 
PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/19/2038       555.3       535.7       534.4       0.26 % 
KRN Logistics, LLC, Newsome Trucking, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2025       543.5       526.6       473.2       0.23 % 
PowerWash Plus, Inc. and CJR,
LLC
    Repair and Maintenance       Term Loan       Prime plus 2.75%       4/30/2038       550.0       523.8       537.3       0.26 % 
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       521.6       480.7       0.24 % 
The Grasso Companies LLC and Grasso Pavement Maintenance LLC Veranda     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       9/28/2025       518.8       512.4       503.8       0.25 % 
SBR Technologies d/b/a Color Graphics     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/31/2021       806.2       512.0       517.0       0.25 % 
American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/25/2038       537.5       510.2       522.8       0.26 % 
The Woods at Bear Creek LLC and Bear Creek Entertainment LLC     Accommodation       Term Loan       Prime plus 2.75%       9/29/2039       513.3       503.9       511.9       0.25 % 
LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/4/2040       502.5       502.5       497.9       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       491.8       499.6       0.24 % 
Polpo Realty LLC (EPC) & Polpo Restaurant LLC (OC) dba Polpo Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/27/2037       517.5       489.4       508.7       0.25 % 
740 Barry Street Realty LLC and Wild Edibles Inc     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       2/10/2040       492.5       485.9       493.7       0.24 % 
200 North 8th Street Associates LLC and Enchanted Acres Farm     Food Manufacturing       Term Loan       Prime plus 2.75%       5/4/2028       494.6       484.0       484.5       0.24 % 
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       482.3       496.1       0.24 % 
Macho LLC (EPC) Madelaine Chocolate Novelties Inc (OC) dba The Madelai     Food Manufacturing       Term Loan       Prime plus 2.75%       12/31/2037       500.0       474.5       493.2       0.24 % 
401 JJS Corporation and G. Randazzo Corporation     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/23/2039       473.5       469.9       464.8       0.23 % 
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       469.7       461.5       0.23 % 
Nikobella Properties LLC and JPO Inc dba Village Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/25/2039       476.3       464.0       468.6       0.23 % 
Firm Foundations Inc. David S Gaitan Jr and Christopher K Daigle     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/3/2023       545.8       463.8       442.9       0.22 % 
Wired LLC and Moulison North Corporation     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2024       500.0       463.4       441.2       0.22 % 
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       458.3       478.0       0.23 % 
Capital Scrap Metal, LLC and Powerline Investment, LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/29/2038       500.0       452.8       470.8       0.23%  

 
 
See accompanying notes to these consolidated financial statements.

F-66


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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     $ 450.2     $ 463.2       0.23 % 
Eastside Soccer Dome, Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2038       463.8       444.8       457.3       0.22 % 
Amboy Group, LLC dba Tommy’s Moloney’s     Food Manufacturing       Term Loan       Prime plus 2.75%       6/24/2025       454.0       443.0       441.4       0.22 % 
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       443.0       402.5       0.20 % 
Sandlot Ventures LLC and Sandbox Ventures LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/25/2040       442.5       441.2       420.4       0.21 % 
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       438.7       400.8       0.20 % 
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       435.3       441.4       0.22 % 
SDA Holdings LLC and Les Cheveux Salon Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/15/2040       428.8       428.8       413.8       0.20 % 
Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/17/2025       437.5       423.9       411.6       0.20 % 
Mid-South Lumber Co. of Northwest Florida, Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/31/2040       428.8       423.7       389.5       0.19 % 
S&P Holdings of Daytona LLC (EPC) S&P Corporation of Daytona Beach     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       8/15/2039       433.5       421.8       428.3       0.21 % 
Tavern Properties LLC and Wildwood Tavern LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/15/2039       425.0       418.8       411.2       0.20 % 
Sherill Universal City dba Golden Corral     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/28/2038       440.5       418.3       429.6       0.21 % 
Wilban LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/28/2039       427.5       415.6       419.8       0.21 % 
Sound Manufacturing, Inc. and Monster Power Equipment Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       3/15/2023       523.0       411.4       408.2       0.20 % 
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       411.3       429.0       0.21 % 
Import Car Connection Inc dba
Car Connection
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/16/2040       407.5       406.3       407.6       0.20 % 
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       404.3       404.7       0.20 % 
920 CHR Realty LLC (EPC) V. Garofalo Carting Inc (OC)     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       12/10/2038       418.1       403.4       414.8       0.20 % 
Utek Corporation dba Arcade Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/22/2039       405.5       402.1       404.7       0.20 % 
RIM Investments LLC and RIM Architects LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/28/2040       399.0       397.8       384.7       0.19 % 
Zane Filippone Co Inc dba Culligan Water Conditioning     Nonstore Retailers       Term Loan       Prime plus 2.75%       4/12/2022       558.2       397.1       400.0       0.20 % 
SE Properties 39 Old Route 146, LLC (EPC) SmartEarly Clifton Park LLC     Social Assistance       Term Loan       Prime plus 2.75%       3/14/2039       408.0       396.7       407.3       0.20 % 
John Duffy Fuel Co., Inc.     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/28/2022       513.8       393.9       398.2       0.20 % 
Bisson Moving & Storage Company Bisson Transportation Inc and BTG Real Estate     Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2022       528.8       391.4       395.0       0.19%  

 
 
See accompanying notes to these consolidated financial statements.

F-67


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
TAK Properties LLC and Kinderland Inc     Social Assistance       Term Loan       Prime plus 2.75%       12/18/2038     $ 405.0     $ 390.8     $ 391.2       0.19 % 
Polymer Sciences, Inc. dba Polymer Sciences, Inc.     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       9/28/2036       422.6       387.2       403.7       0.20 % 
Kup’s Auto Spa Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/15/2038       396.7       377.2       386.0       0.19 % 
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       377.1       365.2       0.18 % 
R.H. Hummer Jr., Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       9/30/2025       375.0       375.0       355.3       0.17 % 
Tariq, LLC dba 76 Food Mart     Gasoline Stations       Term Loan       Prime plus 2.75%       12/2/2040       375.0       375.0       372.0       0.18 % 
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       375.0       370.9       0.18 % 
B&B Organics LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       12/22/2040       375.0       375.0       382.2       0.19 % 
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       372.1       329.1       0.16 % 
3Fmanagement LLC and ATC Fitness Cape Coral, LLC dba Around the Clock     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       1/24/2024       425.0       364.2       342.2       0.17 % 
AIG Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/4/2040       363.8       362.7       340.6       0.17 % 
The Berlerro Group, LLC dba Sky Zone     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/12/2023       421.3       360.6       335.9       0.16 % 
Gator Communications Group LLC dba Harvard Printing Group     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       8/31/2021       575.0       358.1       360.2       0.18 % 
Fair Deal Food Mart Inc dba Neighbors Market     Gasoline Stations       Term Loan       Prime plus 2.75%       5/3/2037       381.3       354.9       370.4       0.18 % 
iFood, Inc. dba Steak N Shake     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/31/2024       379.1       353.5       317.9       0.16 % 
Murrayville Donuts, Inc dba Dunkin’ Donuts     Food and Beverage Stores       Term Loan       Prime plus 2.75%       7/15/2040       344.5       344.5       329.3       0.16 % 
Michael J. Speeney & Joyce Speeney and R2 Tape, Inc.     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       8/31/2037       367.5       344.4       357.7       0.18 % 
Basista Family Limited Partnership and UPE, Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/14/2040       342.5       342.5       334.5       0.16 % 
Johnson Carwash LLC and Johnson Petroleum LLC     Gasoline Stations       Term Loan       Prime plus 2.75%       9/14/2040       340.0       340.0       345.1       0.17 % 
Ezzo Properties, LLC and Great Lakes Cleaning, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/20/2027       389.6       338.3       335.0       0.16 % 
Suncoast Aluminum Furniture, Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       8/17/2037       360.0       337.5       350.3       0.17 % 
Mirage Plastering Inc and Mpire LLC and Mpire II LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/12/2040       338.8       336.3       290.1       0.14 % 
Cencon Properties LLC and Central Connecticut Warehousing Company, Inc     Warehousing and Storage       Term Loan       Prime plus 2.75%       9/30/2038       344.5       331.0       339.2       0.17 % 
Gator Communications Group LLC dba Harvard Printing Group     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       3/30/2022       466.3       330.4       331.0       0.16 % 
Spectrum Development LLC and Solvit Inc & Solvit North, Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/2/2023       387.3       329.2       314.3       0.15 % 
Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/29/2025       337.5       326.9       277.2       0.14%  

 
 
See accompanying notes to these consolidated financial statements.

F-68


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Hagerstown Muffler, Inc. and JMS Muffler, Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/24/2040     $ 327.5     $ 326.5     $ 332.8       0.16 % 
Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/27/2038       335.1       321.4       323.3       0.16 % 
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       320.1       334.0       0.16 % 
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       319.3       324.3       0.16 % 
Nova Solutions Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/22/2040       320.0       319.1       313.0       0.15 % 
MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads     Food Manufacturing       Term Loan       Prime plus 2.75%       3/29/2038       336.0       319.0       324.6       0.16 % 
Taylor Transport, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       12/8/2021       515.5       317.2       320.2       0.16 % 
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       313.6       315.9       0.15 % 
A & M Commerce, Inc. dba Cranberry Sunoco     Gasoline Stations       Term Loan       Prime plus 2.75%       3/27/2038       330.3       313.3       323.5       0.16 % 
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       311.2       313.7       0.15 % 
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       311.1       307.8       0.15 % 
Jumbomarkets Inc dba Rines Jumbomarkets     Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/4/2025       306.3       306.3       294.4       0.14 % 
BCD Holdings, LLC and H-MA, LLC d/b/a/ Hawaii Mainland Administrators     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       3/2/2022       451.3       305.1       304.3       0.15 % 
Summit Beverage Group LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       2/28/2024       350.6       302.9       292.2       0.14 % 
Onofrios Enterprises LLC (EPC) Onofrios Fresh Cut, Inc     Food Manufacturing       Term Loan       Prime plus 2.75%       9/30/2038       312.5       301.0       304.4       0.15 % 
Joyce Outdoor Advertising Chicago LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/22/2040       300.0       300.0       284.5       0.14 % 
Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac     Accommodation       Term Loan       Prime plus 2.75%       3/27/2040       301.8       298.2       303.0       0.15 % 
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       296.3       294.5       0.14 % 
R A Johnson Inc dba Rick Johnson Auto and Tire     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/23/2039       301.3       294.9       299.5       0.15 % 
American Campgrounds LLC dba Whit’s End Campground     Accommodation       Term Loan       Prime plus 2.75%       12/4/2040       293.0       293.0       290.9       0.14 % 
Custom Software, Inc. a Colorado Corporation dba M-33 Access     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/17/2021       426.0       289.2       293.0       0.14 % 
Anturio Marketing Inc dba Logic Consulting     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/12/2040       290.3       288.1       292.8       0.14 % 
Summit Beverage Group LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2030       291.9       286.8       258.1       0.13 % 
Aegis Creative Communications,
Inc.
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/30/2022       387.5       286.2       277.3       0.14 % 
The Smile Place LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       283.9       282.2       276.4       0.14%  

 
 
See accompanying notes to these consolidated financial statements.

F-69


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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     $ 278.0     $ 270.9       0.13 % 
New Image Building Services Inc. dba New Image Repair Services     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/29/2023       331.3       277.0       259.8       0.13 % 
Anglin Cultured Stone Products LLC dba Anglin Construction     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2025       281.8       273.0       238.1       0.12 % 
Cheryle A Baptiste and Cheryle Baptiste DDS PLLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/30/2037       286.5       270.0       278.8       0.14 % 
Central Tire, Inc. dba Cooper Tire & Auto Services     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/29/2037       288.5       269.1       279.5       0.14 % 
First Prevention and Dialysis Center LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/30/2024       273.3       268.9       251.4       0.12 % 
New Image Building Services, Inc. dba New Image Repair Services     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/23/2037       285.7       267.7       271.6       0.13 % 
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       264.1       275.3       0.13 % 
Faith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/20/2038       268.4       258.1       259.5       0.13 % 
Thrifty Market, Inc. dba Thrifty Foods     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/30/2030       262.5       257.9       227.2       0.11 % 
15 McArdle LLC and No Other Impressions Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/15/2040       257.1       254.9       238.4       0.12 % 
Scent-Sation, Inc. d/b/a Scent-Sation, Inc.     Textile Product Mills       Term Loan       Prime plus 2.75%       11/21/2021       337.5       253.9       257.1       0.13 % 
Reidville Hydraulics & Mfg Inc dba Summit Farms LLC     Machinery Manufacturing       Term Loan       Prime plus 2.75%       11/2/2037       265.9       250.6       254.6       0.12 % 
All-Tag Corporation     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       11/30/2025       250.4       250.4       218.0       0.11 % 
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       250.4       237.3       0.12 % 
JAG Unit 1, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2025       250.0       250.0       210.6       0.10 % 
V2 Tango LLC dba Palette 22     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/23/2025       250.0       250.0       217.1       0.11 % 
Animal Intrusion Prevention Systems Holding Company, LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/15/2024       272.5       248.2       219.7       0.11 % 
HAVANA CENTRAL NJ1, LLC dba Havana Central     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/31/2025       250.0       245.1       238.9       0.12 % 
Wolf Enviro Interests, LLC and Enviromax Services Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/25/2040       246.5       244.7       223.7       0.11 % 
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       244.4       226.0       0.11 % 
MJD Investments, LLC dba The Community Day School     Social Assistance       Term Loan       Prime plus 2.75%       1/31/2038       258.3       244.3       250.6       0.12 % 
RKP Service dba Rainbow
Carwash
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/31/2023       300.0       243.1       237.5       0.12 % 
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       242.9       225.8       0.11 % 
JWB Industries, Inc. dba Carteret Die Casting     Primary Metal Manufacturing       Term Loan       Prime plus 2.75%       2/11/2024       280.0       241.8       225.3       0.11 % 
800 on the Trax LLC and Matrix Z LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       12/23/2040       240.0       240.0       234.6       0.12 % 
Xela Pack, Inc. and Aliseo and Catherine Gentile     Paper Manufacturing       Term Loan       Prime plus 2.75%       3/27/2028       271.8       239.2       244.5       0.12%  

 
 
See accompanying notes to these consolidated financial statements.

F-70


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
WI130, LLC (EPC) & Lakeland Group, Inc (OC) dba Lakeland Electrical     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/31/2028     $ 271.5     $ 239.0     $ 238.1       0.12 % 
LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Market     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/21/2037       252.3       236.8       242.7       0.12 % 
Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/24/2038       246.3       236.8       234.5       0.11 % 
Capitol Waste and Recycling Services LLC     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       10/10/2024       257.8       236.4       210.6       0.10 % 
All About Smiles P A     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       237.7       235.9       231.1       0.11 % 
Joyce Outdoor Advertising LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/29/2040       234.8       234.8       235.3       0.12 % 
Pierce Developments, Inc. dba Southside Granite     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/13/2036       256.1       233.3       242.6       0.12 % 
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       233.1       236.7       0.12 % 
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       227.4       229.0       0.11 % 
M & H Pine Straw Inc and Harris L. Maloy     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/21/2023       288.8       227.1       227.0       0.11 % 
MTV Bowl, Inc. dba Legend
Lanes
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/30/2036       248.5       226.4       235.8       0.12 % 
Meridian Hotels, LLC dba Best Western Jonesboro     Accommodation       Term Loan       Prime plus 2.75%       11/25/2039       228.0       224.9       228.4       0.11 % 
HJ & Edward Enterprises, LLC dba Sky Zone     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2023       262.5       224.8       218.5       0.11 % 
DuCharme Realty LLC and DuCharme Enterprises LLC dba Specialty     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       2/2/2040       225.1       222.1       208.0       0.10 % 
Hemingway Custom Cabinetry
LLC
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/25/2025       220.0       217.3       187.0       0.09 % 
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       216.7       222.9       0.11 % 
Homegrown For Good LLC     Apparel Manufacturing       Term Loan       Prime plus 2.75%       11/26/2024       230.0       215.5       195.5       0.10 % 
Discount Wheel and Tire     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/30/2038       223.8       214.6       214.3       0.11 % 
Newsome Trucking Inc and Kevin Newsome     Truck Transportation       Term Loan       Prime plus 2.75%       9/2/2035       423.1       214.1       222.6       0.11 % 
Schmaltz Holdings, LLC (EPC) and Schmaltz Operations, LLC dba Companio     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/4/2038       224.2       213.7       213.3       0.10 % 
Mosley Auto Group LLC dba America’s Automotive     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/20/2038       221.5       213.7       217.6       0.11 % 
Tortilla King Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2039       216.9       211.2       207.8       0.10 % 
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       211.1       219.0       0.11 % 
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       210.9       205.9       0.10 % 
Pioneer Windows Manufacturing Corp, Pioneer Windows     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       11/21/2022       275.0       209.8       207.4       0.10 % 
Evans and Paul LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/30/2024       223.8       208.2       198.7       0.10%  

 
 
See accompanying notes to these consolidated financial statements.

F-71


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Faith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2039     $ 214.2     $ 207.9     $ 206.4       0.10 % 
Superior Disposal Service, Inc.     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       12/26/2023       240.5       204.4       200.8       0.10 % 
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       204.3       203.2       0.10 % 
1 North Restaurant Corp dba 1 North Steakhouse     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       10/31/2038       212.5       204.3       207.8       0.10 % 
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       204.2       210.9       0.10 % 
Elan Realty, LLC and Albert Basse Asociates, Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       9/30/2035       228.2       203.7       212.6       0.10 % 
Modern Manhattan LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       11/25/2024       220.0       203.3       171.5       0.08 % 
AMG Holding, LLC and Stetson Automotive, Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/30/2039       208.0       202.7       208.6       0.10 % 
JEJE Realty LLC and La Familia
Inc
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/10/2039       205.8       202.1       193.6       0.09 % 
Gill Express Inc. dba American Eagle Truck Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       1/5/2027       286.9       200.4       206.1       0.10 % 
Block and Grinder LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       200.0       200.0       196.6       0.10 % 
Water Works Laundromat, L.L.C.     Personal and Laundry Services       Term Loan       Prime plus 2.25%       9/7/2027       267.3       194.8       195.3       0.10 % 
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       194.7       197.2       0.10 % 
Spire Investment Partners, LLC     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       9/28/2022       258.8       192.7       186.7       0.09 % 
Douglas Printy Motorsports, Inc. dba Blackburn Trike     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/9/2040       191.8       189.5       180.5       0.09 % 
8 Minute Oil Change of Springfield Corporation and John Nino     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/12/2038       196.8       188.0       191.7       0.09 % 
Sapienzo Properties LLC (EPC) CNS Self-Storage Inc (OC)     Real Estate       Term Loan       Prime plus 2.75%       3/27/2039       193.8       187.0       192.4       0.09 % 
Greenbrier Technical Services, Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/24/2023       240.1       183.0       183.2       0.09 % 
Brothers International Desserts     Food Manufacturing       Term Loan       Prime plus 2.75%       4/26/2023       230.0       182.7       181.4       0.09 % 
Majestic Contracting Services, Inc. dba Majestic Electric and Majestic Plumbing     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/26/2038       190.0       181.6       180.6       0.09 % 
Danjam Enterprises, LLC dba Ariel Dental Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/31/2035       204.0       180.7       188.4       0.09 % 
(EPC) Absolute Desire LLC and Mark H. Szierer (OC) Sophisticated Smile     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/5/2038       188.3       180.0       183.6       0.09 % 
(EPC) Willowbrook Properties LLC (OC) Grove Gardens Landscaping Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/5/2038       186.3       177.8       183.5       0.09 % 
Trip Consultants U.S.A. Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/18/2025       175.0       175.0       147.4       0.07 % 
Richmond Hill Mini Market, LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/27/2037       185.3       174.7       180.2       0.09%  

 
 
See accompanying notes to these consolidated financial statements.

F-72


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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     $ 174.5     $ 153.2       0.08 % 
KK International Trading
Corporation
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/23/2028       190.0       174.0       172.1       0.08 % 
Bryan Bantry Inc.     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       9/8/2021       400.0       174.0       173.0       0.08 % 
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       173.9       178.5       0.09 % 
Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer
Windows
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/20/2022       225.0       173.3       171.3       0.08 % 
Douglas Posey and Sally Watkinson dba Audrey’s Farmhouse     Accommodation       Term Loan       Prime plus 2.75%       5/20/2040       174.1       172.6       170.5       0.08 % 
Sound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/10/2024       187.5       172.3       150.6       0.07 % 
Neyra Industries, Inc. and Edward Neyra     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       3/27/2023       217.5       171.2       173.2       0.08 % 
Chickamauga Properties, Inc.,
MSW Enterprises, LLP
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/22/2035       189.5       171.1       178.5       0.09 % 
R2 Tape Inc dba Presto Tape     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/29/2025       176.3       170.8       160.6       0.08 % 
Fran-Car Corporation dba Horizon Landscape Management     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/3/2028       407.8       170.5       175.8       0.09 % 
BND Sebastian Limited Liability Company and Sebastian Fitness     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/16/2040       172.5       170.5       168.2       0.08 % 
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       170.0       161.1       0.08 % 
R & J Petroleum LLC (EPC) Manar USA, Inc. (OC)     Gasoline Stations       Term Loan       Prime plus 2.75%       11/20/2037       180.0       169.5       175.4       0.09 % 
15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/16/2021       250.0       168.6       169.3       0.08 % 
South Park Properties LLC and Midlothian Hardware LLC dba Grill     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/6/2040       170.5       167.9       170.0       0.08 % 
Spectrum Radio Fairmont, LLC     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       8/30/2023       187.5       164.3       164.3       0.08 % 
Wilshire Media Systems Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/17/2024       186.3       163.4       151.7       0.07 % 
Pine Belt Wood Products LLC     Forestry and Logging       Term Loan       Prime plus 2.75%       9/22/2040       163.8       163.3       147.9       0.07 % 
Wise Forklift Inc     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       10/1/2020       296.9       162.9       164.7       0.08 % 
Labmates LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       12/18/2040       162.5       162.5       165.6       0.08 % 
Gator Communications Group LLC dba Harvard Printing Group     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       4/25/2022       228.8       162.1       162.5       0.08 % 
B & W Towing, LLC and Boychucks Fuel LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/17/2039       164.5       161.8       153.1       0.08 % 
Hae M. and Jin S. Park dba Buford Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/15/2039       166.5       161.2       160.0       0.08 % 
M & H Pinestraw, Inc. and Harris L. Maloy     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/15/2021       238.3       161.2       161.6       0.08 % 
185 Summerfield Inc and Valcon Contracting Corp     Construction of Buildings       Term Loan       Prime plus 2.75%       10/24/2039       162.3       159.1       157.6       0.08%  

 
 
See accompanying notes to these consolidated financial statements.

F-73


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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     $ 158.8     $ 151.3       0.07 % 
Carolina Flicks Inc dba The Howell Theater     Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       12/23/2032       163.3       158.5       149.5       0.07 % 
Spire Investment Partners, LLC     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       6/22/2021       250.0       157.4       157.8       0.08 % 
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       155.9       153.6       0.08 % 
Ramard Inc and Advanced Health Sciences Inc     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       8/28/2023       187.5       154.3       140.5       0.07 % 
South Florida Air Conditioning and Refrigeration Corp.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/27/2040       155.5       153.7       153.3       0.08 % 
Golden Transaction Corporation dba Bleh Sunoco     Gasoline Stations       Term Loan       Prime plus 2.75%       10/30/2039       156.7       153.6       152.9       0.07 % 
Avayaan2 LLC dba Island Cove     Gasoline Stations       Term Loan       Prime plus 2.75%       3/7/2039       157.5       152.7       154.1       0.08 % 
RDT Enterprises LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/15/2027       162.8       152.7       147.6       0.07 % 
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       150.6       126.8       0.06 % 
RXSB, Inc dba Medicine Shoppe     Health and Personal Care Stores       Term Loan       Prime plus 2.75%       5/30/2023       186.3       149.8       145.3       0.07 % 
FirstVitals Health and Wellness Inc     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/15/2025       150.0       148.1       124.7       0.06 % 
Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar Deals     Gasoline Stations       Term Loan       Prime plus 2.75%       8/15/2039       150.0       147.2       131.7       0.06 % 
Honeyspot Investors LLP and Pace Motor Lines Inc     Truck Transportation       Term Loan       Prime plus 2.75%       7/24/2039       150.0       146.4       147.7       0.07 % 
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       146.3       148.5       0.07 % 
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       146.1       139.8       0.07 % 
Dantanna’s Tavern LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2024       164.3       144.8       136.4       0.07 % 
Cool Air Solutions, Inc. dba Graham Heating & Air Conditioning     Specialty Trade Contractors       Term Loan       Prime plus 2%       12/27/2018       411.5       144.8       144.3       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       144.4       140.6       0.07 % 
Vernon & Stephanie Scott and Little Stars Day Care Center, Inc.     Educational Services       Term Loan       Prime plus 2.75%       4/18/2038       151.0       143.6       149.3       0.07 % 
J. Kinderman & Sons Inc., dba BriteStar Inc.     Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       3/20/2023       181.3       142.7       144.3       0.07 % 
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       142.6       144.3       0.07 % 
Alpha Preparatory Academy LLC     Social Assistance       Term Loan       Prime plus 2.75%       8/15/2039       145.2       142.5       144.7       0.07 % 
Ryan Crick and Pamela J. Crick and Crick Enterprises Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/17/2039       145.5       142.4       144.6       0.07%  

 
 
See accompanying notes to these consolidated financial statements.

F-74


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Peter Thomas Roth Labs LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/26/2018     $ 425.0     $ 142.3     $ 143.4       0.07 % 
Knowledge First Inc dba Magic Years of Learning and Kimberly Knox     Social Assistance       Term Loan       Prime plus 2.75%       3/21/2039       145.0       140.8       139.9       0.07 % 
USI Properties LLC dba U Store It     Real Estate       Term Loan       Prime plus 2.75%       5/23/2039       144.6       140.7       144.0       0.07 % 
Wired LLC and Moulison North Corporation     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/3/2024       150.1       140.1       126.0       0.06 % 
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       139.6       142.2       0.07 % 
Stormrider Inc dba Shirley’s Stormrider, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       11/25/2024       150.0       138.6       115.1       0.06 % 
Big Apple Entertainment Partners, LLC d/b/a Ripley’s Believe It or Not     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       10/26/2022       180.0       138.4       134.2       0.07 % 
ATC Fitness LLC dba Around the Clock Fitness     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/28/2022       180.0       137.8       137.4       0.07 % 
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       137.6       137.4       0.07 % 
Matchless Transportation LLC dba First Class Limo     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       8/3/2022       185.0       137.0       135.7       0.07 % 
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       137.0       140.9       0.07 % 
3000 CSI Property LLC and Consulting Solutions Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/20/2040       137.5       136.9       137.1       0.07 % 
Kemmer LLC and Apples Tree Top Liquors LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/4/2039       138.4       136.1       126.9       0.06 % 
Spectrumit, Inc, (OC) dba LANformation     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/31/2030       154.9       135.8       139.4       0.07 % 
Grafio Inc dba Omega Learning Center-Acworth     Educational Services       Term Loan       Prime plus 2.75%       9/13/2023       156.3       135.0       126.3       0.06 % 
CEM Autobody LLC dba Dawn’s Autobody     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/26/2040       135.5       134.5       128.6       0.06 % 
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       134.2       124.0       0.06 % 
Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/18/2040       134.0       133.9       131.3       0.06 % 
DKB Transport Corp     Truck Transportation       Term Loan       Prime plus 2.75%       12/5/2038       138.8       133.9       137.6       0.07 % 
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       133.4       138.8       0.07 % 
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       133.1       134.9       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       132.6       134.6       0.07 % 
Haven Hospitality Group Inc. dba Haven Gastropub     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/20/2025       132.5       132.5       113.7       0.06 % 
Mid-Land Sheet Metal Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/31/2038       137.5       132.4       134.1       0.07 % 
City Sign Service, Incorporated     Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       11/30/2025       165.8       132.1       134.7       0.07%  

 
 
See accompanying notes to these consolidated financial statements.

F-75


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Bay State Funeral Services, LLC (EPC) and Riley Funeral Home Inc (OC)     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/21/2039     $ 134.9     $ 131.6     $ 135.4       0.07 % 
Jade Automotive d/b/a Sears Hometown Store     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       10/6/2035       146.6       131.5       137.3       0.07 % 
J&M Concessions, Inc. dba A-1 Liquors     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/3/2039       135.6       131.3       129.2       0.06 % 
Modern on the Mile, LLC dba Ligne Roset     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       5/25/2021       212.5       131.1       131.5       0.06 % 
Access Staffing, LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/30/2022       187.5       131.1       130.5       0.06 % 
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       131.0       131.1       0.06 % 
RDT Enterprises, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2028       141.2       130.6       132.4       0.06 % 
Demand Printing Solutions, Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/29/2034       147.5       128.7       133.9       0.07 % 
Green Life Lawnscapes LLC dba Green Life Lawn Care     Administrative and Support Services       Term Loan       Prime plus 2.75%       11/6/2025       127.3       127.3       122.4       0.06 % 
R2 Tape, Inc. dba Presto Tape and Michael J. and Joyce Speeney     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       10/20/2020       224.4       126.6       127.6       0.06 % 
Nelson Sargsyan dba HDA
Trucking
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       6/16/2025       130.5       126.4       105.1       0.05 % 
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       126.0       131.2       0.06 % 
George S Cochran DDS Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/7/2025       130.0       125.1       104.4       0.05 % 
Music Mountain Water Company, LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       4/25/2036       138.1       125.1       130.7       0.06 % 
Sarah Sibadan dba Sibadan
Agency
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       1/27/2039       129.4       125.0       127.4       0.06 % 
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       125.0       110.6       0.05 % 
Smokeyard Inc dba Smokeyard BBQ and Chop Shop     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       125.0       125.0       107.6       0.05 % 
Evans & Paul LLC and E&P Holdings I LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       12/15/2025       125.0       125.0       110.9       0.05 % 
Abitino’s JFK LLC dba Abitino’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2022       125.0       124.9       110.4       0.05 % 
The LAX Shop Inc     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       12/22/2025       125.0       125.0       124.9       0.06 % 
Hascher Gabelstapler Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/26/2024       143.3       124.6       121.0       0.06 % 
Maxiflex LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/28/2023       153.5       124.1       125.6       0.06 % 
Michael Rey Jr. and Lynn J. Williams (EPC) and GIG
Petcare
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/3/2039       126.9       123.6       122.1       0.06 % 
Geo Los Angeles LLC dba Geo Film Group     Rental and Leasing Services       Term Loan       Prime plus 2.75%       3/26/2025       130.0       123.5       112.5       0.06 % 
Naeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/17/2025       125.0       123.5       103.9       0.05 % 
Naeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/30/2025       125.0       123.5       104.0       0.05%  

 
 
See accompanying notes to these consolidated financial statements.

F-76


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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     $ 122.9     $ 122.9       0.06 % 
Food & Fuel Company LLC dba Lowery Food Mart     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/4/2040       122.5       122.5       124.3       0.06 % 
Lamjam LLC (EPC) Goldsmith Lambros Inc (OC)     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       8/27/2024       133.8       122.2       121.6       0.06 % 
Trademark Equipment Company Inc and David A. Daniel     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       8/19/2036       133.6       122.1       126.9       0.06 % 
Supreme Screw Products, Inc. and Misha Migdal     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/17/2019       308.2       121.6       122.7       0.06 % 
Atlas Mountain Construction, LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       5/13/2038       127.3       121.2       126.1       0.06 % 
Medworxs LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/3/2025       125.0       121.1       101.6       0.05 % 
LP Industries Inc dba Childforms     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025       125.0       120.9       112.3       0.06 % 
Bizzare Foods Inc dba Trooper
Foods
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/12/2025       125.0       120.6       100.3       0.05 % 
3 F Management LLC and ATC Port Charlotte LLC dba Around The Clock Fit     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       10/17/2024       131.3       120.4       106.2       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       120.4       114.1       0.06 % 
Prospect Kids Academy Inc     Educational Services       Term Loan       Prime plus 2.75%       9/11/2038       124.3       119.2       120.5       0.06 % 
Copper Beech Financial Group
LLC
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       3/30/2025       125.0       118.7       107.2       0.05 % 
Knits R Us, Inc. dba NYC Sports/Mingle     Textile Mills       Term Loan       Prime plus 2.75%       2/11/2038       125.0       118.4       123.1       0.06 % 
1258 Hartford TPKE, LLC (EPC) and Phelps and Sons, Inc (OC)     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/29/2038       124.6       118.3       120.9       0.06 % 
Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store     Nonstore Retailers       Term Loan       Prime plus 2.75%       4/18/2036       129.5       117.9       123.2       0.06 % 
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       117.8       116.3       0.06 % 
Balthazar Management Virgin Islands LLC dba The Beach Cafe     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/27/2025       123.3       117.1       116.6       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       115.7       120.8       0.06 % 
Wilton Dental Care P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/29/2024       128.1       115.6       106.3       0.05 % 
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       115.5       118.8       0.06 % 
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       115.5       120.1       0.06 % 
Qycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/19/2021       187.5       114.2       114.2       0.06 % 
Kemmer, LLC (EPC) and Pitts Package Store, Inc. (OC)     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/31/2039       117.5       114.1       109.9       0.05 % 
AS Boyals LLC dba Towne
Liquors
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       4/29/2039       117.5       114.1       117.4       0.06 % 
R2 Tape Inc dba Presto Tape     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       8/31/2022       155.0       114.1       115.2       0.06%  

 
 
See accompanying notes to these consolidated financial statements.

F-77


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Modern Manhattan, LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       9/20/2020     $ 204.0     $ 113.3     $ 113.5       0.06 % 
5091 LLC and TR/AL LLC d/b/a Cafe Africana     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/31/2037       121.3       113.2       117.8       0.06 % 
Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/29/2025       112.5       112.5       98.4       0.05 % 
Katie Senior Care LLC dba Home Instead Senior Care     Social Assistance       Term Loan       Prime plus 2.75%       8/15/2024       124.3       112.3       93.2       0.05 % 
Shelton Incorporated dba Mrs. Winners     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/20/2040       112.5       111.2       112.1       0.05 % 
Dosus Inc dba Perry’s Pools     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       8/7/2025       112.5       110.9       95.2       0.05 % 
Qycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/26/2024       121.0       109.5       98.8       0.05 % 
Golden Gate Lodging LLC (OC)     Accommodation       Term Loan       Prime plus 2.75%       3/12/2038       115.0       109.2       112.6       0.06 % 
Rainbow Dry Cleaners     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/13/2024       122.5       109.1       102.8       0.05 % 
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       108.8       100.8       0.05 % 
Sushiya, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/8/2025       108.8       108.8       97.2       0.05 % 
Westville Seafood LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/19/2038       112.3       107.7       107.6       0.05 % 
Cormac Enterprises and Wyoming Valley Beverage Incorporated     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/20/2039       110.8       107.6       110.6       0.05 % 
Excel RP Inc     Machinery Manufacturing       Term Loan       Prime plus 2.75%       8/30/2023       130.3       107.2       105.9       0.05 % 
Wallace Holdings LLC (EPC) GFA International Inc (OC)     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.5%       11/25/2023       125.0       105.2       96.5       0.05 % 
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       104.7       94.8       0.05 % 
Mustafa Inc dba Adiba Grocery     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/17/2025       103.8       103.8       103.7       0.05 % 
Pooh’s Corner Realty LLC and Pooh’s Corner Inc     Social Assistance       Term Loan       Prime plus 2.75%       7/23/2040       103.8       103.2       104.0       0.05 % 
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       102.5       102.3       0.05 % 
Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.     Support Activities for Transportation       Term Loan       Prime plus 2.75%       1/28/2036       113.4       102.1       106.6       0.05 % 
WPI, LLC     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       6/29/2024       129.5       101.3       102.2       0.05 % 
B and A Friction Materials Inc     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/9/2025       102.5       101.2       85.2       0.04 % 
Shorr Enterprises Inc dba New Design Furniture Manufacturers     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       3/27/2025       106.5       101.2       92.8       0.05 % 
Island Wide Realty LLC and Long Island Partners, Inc.     Real Estate       Term Loan       Prime plus 2.75%       4/22/2039       103.8       100.9       103.8       0.05 % 
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       100.7       103.9       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       104.3       100.5       97.9       0.05 % 
State Painting and Decorating Co
Inc
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/25/2025       100.0       100.0       84.2       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-78


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Delta Aggregate, LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       11/30/2025     $ 100.0     $ 100.0     $ 99.9       0.05 % 
Custom Exteriors, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/9/2025       100.0       100.0       87.3       0.04 % 
Matthew Taylor and Landon Farm LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/4/2040       100.0       99.8       88.7       0.04 % 
DNT Storage and Properties LLC     Real Estate       Term Loan       Prime plus 2.75%       10/10/2039       101.8       99.8       99.4       0.05 % 
Little People’s Village II LLC (OC) and Iliopoulos Realty LLC
(EPC)
    Social Assistance       Term Loan       Prime plus 2.75%       3/31/2039       101.5       99.1       97.6       0.05 % 
Bear Creek Entertainment, LLC dba The Woods at Bear Creek     Accommodation       Term Loan       Prime plus 2.75%       12/30/2024       106.3       99.0       98.6       0.05 % 
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       98.4       94.9       0.05 % 
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       98.2       96.0       0.05 % 
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       97.9       98.5       0.05 % 
Lefont Theaters, Inc.     Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       5/30/2022       137.0       97.9       98.4       0.05 % 
G.M. Pop’s, Inc. & S.D. Food, Inc. dba Popeyes Louisiana Kitchen     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/11/2022       127.1       97.6       95.4       0.05 % 
New Paltz Dental Care, PLLC dba Ariel Dental Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/19/2025       100.0       97.5       92.5       0.05 % 
California College of Communications, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/2/2020       172.5       97.2       97.3       0.05 % 
986 Dixwell Avenue Holding Company, LLC (EPC) and Mughali Foods, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/7/2039       99.1       96.4       97.1       0.05 % 
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       96.0       98.7       0.05 % 
Custom Software, Inc. a Colorado Corporation dba M-33 Access     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       4/30/2022       125.0       94.3       95.6       0.05 % 
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       93.7       93.2       0.05 % 
First Steps Real Estate Company, LLC (EPC) and First Steps Preschool     Social Assistance       Term Loan       Prime plus 2.75%       9/30/2038       97.6       93.6       92.5       0.05 % 
A & A Auto Care, LLC d/b/a A & A Auto Care, LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/12/2036       101.0       93.4       97.3       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       93.0       96.8       0.05 % 
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       92.6       93.0       0.05 % 
Metro Used Cars Inc. dba Metro Auto Center     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       1/14/2027       117.6       92.6       94.9       0.05 % 
MRM Supermarkets, Inc. dba Constantin’s Breads     Food Manufacturing       Term Loan       Prime plus 2.75%       11/10/2021       137.5       91.9       92.5       0.05 % 
Union 2 LLC dba The Standard     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/10/2025       91.5       91.5       83.7       0.04 % 
E.S.F.P. LLC dba Volusia Van and Storage     Truck Transportation       Term Loan       Prime plus 2.75%       11/11/2025       91.3       91.2       78.6       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-79


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
U & A Food and Fuel, Inc. dba Express Gas & Food Mart     Gasoline Stations       Term Loan       Prime plus 2.75%       11/21/2037     $ 96.3     $ 90.7     $ 94.3       0.05 % 
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       90.6       93.3       0.05 % 
Royal Crest Motors LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/16/2040       91.3       90.1       87.5       0.04 % 
Moochie’s LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2024       100.5       90.0       83.2       0.04 % 
Video Vault & Tanning LLC and Mosaic Salon LLC     Rental and Leasing Services       Term Loan       Prime plus 2.75%       6/4/2040       90.5       89.9       91.2       0.04 % 
Little People’s Village II LLC (OC) and Iliopoulos Realty LLC
(EPC)
    Social Assistance       Term Loan       Prime plus 2.75%       3/31/2039       92.1       89.9       88.5       0.04 % 
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       89.2       89.2       0.04 % 
Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy     Health and Personal Care Stores       Term Loan       Prime plus 2.75%       11/20/2025       89.0       89.0       76.4       0.04 % 
Angkor Restaurant Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/19/2038       93.0       88.9       90.5       0.04 % 
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       88.9       89.8       0.04 % 
Seelan Inc dba Candleridge
Market
    Gasoline Stations       Term Loan       Prime plus 2.75%       10/27/2039       90.5       88.7       84.8       0.04 % 
Delta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       3/30/2025       90.0       88.2       87.9       0.04 % 
Advanced Machine & Technology, Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025       90.3       88.0       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       87.8       88.3       0.04 % 
Manuel P. Barrera and Accura Electrical Contractor, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/23/2028       103.7       87.6       88.9       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       87.4       81.6       0.04 % 
Greensward of Marco Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/28/2040       87.5       87.2       84.8       0.04 % 
Kiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       9/25/2038       89.3       86.7       85.9       0.04 % 
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       86.5       72.9       0.04 % 
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       86.2       86.1       0.04 % 
E-Z Box Storage, Inc.     Real Estate       Term Loan       Prime plus 2.75%       5/11/2025       89.3       85.9       85.6       0.04 % 
Animal Intrusion Prevention Systems Holding Company, LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/29/2024       126.5       85.7       87.2       0.04 % 
Kurtis Sniezek dba Wolfe’s Foreign Auto     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/20/2038       88.9       85.7       88.2       0.04 % 
Bat Bridge Investments Inc dba Kalologie 360 Spa     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/30/2025       85.5       85.5       72.0       0.04 % 
Sumad LLC dba BrightStar Care of Encinitas     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/2/2024       92.5       85.4       85.0       0.04 % 
Doctors Express Management of Central Texas LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/8/2024       105.0       85.2       80.8       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-80


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
RDRhonehouse ENT. LLC dba Chill Skinz     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       4/29/2025     $ 88.9     $ 85.0     $ 70.7       0.03 % 
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       84.4       85.8       0.04 % 
Tanner Optical Inc. dba Murphy Eye Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/22/2035       94.6       84.0       87.4       0.04 % 
SKJ Inc dba Subway     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/13/2025       84.8       83.3       71.1       0.03 % 
J&M Concessions Inc dba A 1 Liquors     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/27/2025       87.5       81.9       73.0       0.04 % 
Osceola River Mill, LLC (EPC) Ironman Machine, Inc. (OC)     Machinery Manufacturing       Term Loan       Prime plus 2.75%       2/20/2038       86.3       81.6       84.2       0.04 % 
Bakhtar Group LLC dba
Malmaison
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2023       103.8       81.7       79.2       0.04 % 
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       81.3       70.0       0.03 % 
209 North 3rd Street, LLC (EPC) Yuster Insurance Group Inc
(OC)
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       7/29/2038       83.9       80.2       80.9       0.04 % 
LAN Doctors Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/28/2025       81.3       79.7       72.0       0.04 % 
Peanut Butter & Co., Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       4/30/2023       100.0       79.4       77.3       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       80.1       0.04 % 
Hofgard & Co., Inc. dba HofgardBenefits     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       7/27/2022       107.3       78.1       78.0       0.04 % 
Limameno LLC dba Sal’s Italian Ristorante     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/23/2025       83.3       78.0       66.9       0.03 % 
Dean 1021 LLC dba Pure Pita     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/29/2025       80.0       77.5       65.6       0.03 % 
Firm Foundations Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/13/2025       81.3       77.2       68.3       0.03 % 
L.M. Jury Enterprises, Inc dba Midwest Monograms     Textile Product Mills       Term Loan       Prime plus 2.75%       10/28/2025       77.0       76.5       65.8       0.03 % 
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       76.2       79.1       0.04 % 
Holloway & CO. P.L.L.C.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/16/2025       75.0       75.0       74.9       0.04 % 
Moments to Remember USA LLC dba Retain Loyalty     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/16/2025       75.0       75.0       68.2       0.03 % 
M & H Pine Straw, Inc and Harris L. Maloy     Support Activities for Agriculture and Forestry       Term Loan       6%       4/30/2020       183.3       75.0       75.7       0.04 % 
Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2022       97.5       74.8       72.6       0.04 % 
BVIP Limousine Service LTD     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       11/27/2038       76.5       73.7       74.7       0.04 % 
Zog Inc.     Other Information Services       Term Loan       6%       3/17/2018       97.5       73.6       74.1       0.04 % 
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       73.2       68.7       0.03 % 
Faramarz Nikourazm dba Car Clinic Center     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/3/2040       73.8       72.9       70.4       0.03 % 
B&P Diners LLC dba Engine House Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/10/2024       80.0       72.9       60.5       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-81


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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     $ 72.7     $ 68.1       0.03 % 
Jonathan E Nichols and Nichols Fire and Security LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/30/2025       75.0       72.7       68.2       0.03 % 
Gerami Realty, LC (EPC) Sherrill Universal City Corral, LP     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/23/2027       78.8       72.0       72.3       0.04 % 
Tri County Heating and Cooling
Inc.
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2023       87.8       71.6       70.8       0.03 % 
Bliss Coffee and Wine Bar, LLC     Food Services and Drinking Places       Term Loan       6%       3/19/2018       87.5       71.4       71.8       0.04 % 
SCJEN Management Inc dba Bowl of Heaven     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2025       71.3       71.3       60.0       0.03 % 
LaHoBa, LLC d/b/a Papa John’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/3/2036       77.5       70.4       73.4       0.04 % 
Triangle Trash LLC dba Bin There Dump That     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       2/18/2025       74.4       70.1       62.8       0.03 % 
R2 Tape Inc dba Presto Tape     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       4/10/2024       78.8       69.1       69.5       0.03 % 
Gold Jet Corp dba The UPS Store     Couriers and Messengers       Term Loan       Prime plus 2.75%       8/14/2025       68.3       68.3       61.7       0.03 % 
Vortex Automotive LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/5/2035       76.6       67.6       70.4       0.03 % 
Chickamauga Properties, Inc., MSW Enterprises, LLP     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/22/2035       74.3       67.3       70.3       0.03 % 
New Life Holdings, LLC and Certified Collision Services, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       7/29/2035       76.2       67.3       70.1       0.03 % 
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       68.1       66.9       65.5       0.03 % 
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       66.9       67.1       0.03 % 
Stormrider Inc dba Shirley’s Stormrider Inc     Truck Transportation       Term Loan       Prime plus 2.75%       9/23/2025       67.5       66.7       56.1       0.03 % 
I-90 RV & Auto Supercenter     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       6/29/2035       74.9       66.5       69.4       0.03 % 
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       65.9       63.2       0.03 % 
Shree Om Lodging, LLC dba
Royal Inn
    Accommodation       Term Loan       Prime plus 2.75%       5/2/2030       333.3       65.6       67.9       0.03 % 
NVR Corporation dba Discount
Food Mart
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/11/2039       68.3       65.4       67.3       0.03 % 
Onofrio’s Fresh Cut Inc     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/6/2024       75.0       65.4       64.2       0.03 % 
Orient Direct, Inc. dba Spracht, Celltek, ODI     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       2/12/2023       84.9       65.4       63.4       0.03 % 
Kostekos Inc dba New York Style Pizza     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/6/2040       66.3       65.4       63.1       0.03 % 
MLM Enterprises LLC and Demand Printing Solutions Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       11/18/2024       70.5       65.1       60.3       0.03 % 
Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/27/2037       69.8       65.0       67.7       0.03 % 
Danjam Enterprises, LLC dba Ariel Dental Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/29/2023       93.0       64.8       65.7       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-82


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Beale Street Blues Company-West Palm Beach LLC dba
Lafayette’s-West Palm Beach
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       7/24/2025     $ 66.3     $ 64.6     $ 56.5       0.03 % 
SofRep, Inc dba Force 12 Media     Other Information Services       Term Loan       Prime plus 2.75%       6/26/2025       66.3       64.2       53.4       0.03 % 
Pauley Tree and Lawn Care Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       7/28/2025       65.8       64.1       57.1       0.03 % 
Michael A. and Heather R. Welsch dba Art & FrameEtc.     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/22/2038       67.5       64.1       66.0       0.03 % 
Kidrose, LLC dba Kidville
Riverdale
    Educational Services       Term Loan       Prime plus 2.75%       4/22/2023       78.8       63.3       62.3       0.03 % 
Yousef Khatib dba Y&M
Enterprises
    Wholesale Electronic Markets and Agents and Brokers       Term Loan       Prime plus 2.75%       11/15/2023       75.0       63.2       58.7       0.03 % 
Free Ion Advisors LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       7/21/2025       64.3       62.7       52.8       0.03 % 
Truth Technologies Inc dba Truth Technologies Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/21/2023       79.5       62.6       61.1       0.03 % 
Guard Dogs MFS LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/8/2025       65.0       62.6       52.5       0.03 % 
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       62.5       62.4       0.03 % 
Sourceco Limited Liability
Company
    Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/17/2025       62.5       62.5       54.5       0.03 % 
Optima Health Care Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/23/2025       62.5       62.5       62.4       0.03 % 
Pace Motor Lines, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       2/26/2025       66.2       62.5       62.0       0.03 % 
God is Good LLC dba BurgerFi     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/27/2025       67.3       62.4       56.0       0.03 % 
Kup’s Auto Spa, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/23/2025       62.5       62.1       60.2       0.03 % 
Rutledge Enterprises Inc dba BLC Property Management     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/23/2040       62.5       61.8       60.6       0.03 % 
Almost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       9/11/2025       62.5       61.7       60.1       0.03 % 
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       61.5       62.9       0.03 % 
Kiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       2/19/2040       61.8       61.1       57.8       0.03 % 
DTM Parts Supply Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/2/2025       62.8       60.8       50.6       0.02 % 
Polpo Realty, LLC (EPC) Polpo Restaurant, LLC (OC)     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/6/2038       62.5       60.5       62.2       0.03 % 
ViAr Visual Communications, Inc. dba Fastsigns 281701     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/5/2025       62.0       60.1       51.2       0.03 % 
Baystate Firearms and Training,
LLC
    Educational Services       Term Loan       Prime plus 2.75%       2/27/2025       63.4       59.7       50.1       0.02 % 
Inverted Healthcare Staffing of Florida LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/18/2025       61.3       59.3       49.3       0.02 % 
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       58.8       57.5       0.03 % 
Home Again Restaurant LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2040       59.0       58.8       58.1       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-83


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ALF, LLC (EPC) Mulit-Service Eagle Tires (OC)     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       5/31/2037     $ 62.9     $ 58.6     $ 61.0       0.03 % 
Emerald Ironworks Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/27/2023       72.0       58.5       57.3       0.03 % 
Homegrown For Good LLC     Apparel Manufacturing       Term Loan       Prime plus 2.75%       5/8/2025       60.0       57.8       50.5       0.02 % 
Metano IBC Services, Inc. and Stone Brook Leasing, LLC     Rental and Leasing Services       Term Loan       Prime plus 2.75%       8/17/2017       315.0       57.1       57.4       0.03 % 
Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       11/27/2023       67.2       56.7       52.5       0.03 % 
University Park Retreat, LLC dba Massage Heights     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/27/2022       76.0       56.5       57.1       0.03 % 
Gordon E Rogers dba Stonehouse Motor Inn     Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       57.5       56.3       57.2       0.03 % 
Eldredge Tavern LLC dba Gonyea’s Tavern     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/8/2040       56.3       55.8       56.8       0.03 % 
SuzyQue’s LLC dba Suzy Que’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/11/2036       61.0       55.3       57.7       0.03 % 
Long Island Barber + Beauty LLC     Educational Services       Term Loan       Prime plus 2.75%       6/2/2039       55.5       54.1       54.1       0.03 % 
Global Educational Delivery Services LLC     Educational Services       Term Loan       Prime plus 2.75%       6/16/2024       60.0       54.0       54.3       0.03 % 
Danny V, LLC dba Hugo’s
Taproom
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2040       54.0       53.6       49.2       0.02 % 
D & D’s Divine Beauty School of Esther, LLC     Educational Services       Term Loan       6%       8/1/2031       57.7       53.5       55.5       0.03 % 
Handy 6391 LLC dba The UPS
Store #6391
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/27/2023       62.5       53.4       53.6       0.03 % 
Road to Sedona Inc dba Thirteen     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/27/2025       56.6       53.4       45.1       0.02 % 
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       53.4       53.3       0.03 % 
Modern Leather Goods Repair Shop Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/17/2024       58.8       53.1       44.1       0.02 % 
Jonesboro Health Food Center
LLC
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       5/27/2024       60.0       52.9       48.6       0.02 % 
B.S. Ventures LLC dba Dink’s Market     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/19/2039       53.8       52.9       53.5       0.03 % 
God Be Glorified Inc dba GBG
Inc
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       8/20/2025       53.0       52.0       43.8       0.02 % 
Real Help LLC dba Real Help Decorative Concrete     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/22/2025       53.1       51.5       49.6       0.02 % 
Akshar Group, LLC     Accommodation       Term Loan       6%       11/5/2028       321.3       51.3       53.0       0.03 % 
KMC RE, LLC & B&B Kennels     Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/19/2034       58.3       51.0       53.1       0.03 % 
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       50.9       44.6       0.02 % 
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       50.9       50.4       0.02 % 
Success Express, Inc. dba Success Express     Couriers and Messengers       Term Loan       Prime plus 2.75%       9/29/2020       91.8       50.6       50.6       0.02 % 
D&G Capital LLC dba Miami
Grill 277
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2025       83.8       50.5       49.7       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-84


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Martin L Hopp, MD PHD A Medical Corp (OC) dba Tower ENT     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/21/2022     $ 66.3     $ 50.5     $ 49.7       0.02 % 
Atlas Auto Body Inc dba Atlas Auto Sales     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/22/2039       51.6       50.4       48.3       0.02 % 
Veliu LLC dba FASTSIGNS
#15901
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/10/2025       50.0       50.0       43.2       0.02 % 
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       49.8       49.5       0.02 % 
Jacksonville Beauty Institute Inc. dba Beauty Institute’s     Educational Services       Term Loan       Prime plus 2.75%       10/23/2025       50.0       49.7       41.9       0.02 % 
Sound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/12/2028       54.8       49.6       48.1       0.02 % 
Sound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/21/2025       50.0       49.5       43.9       0.02 % 
South Towne Dental Center, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025       50.0       49.4       49.3       0.02 % 
Finish Strong Inc dba FASTSIGNS St Peters     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/23/2025       50.0       49.4       41.6       0.02 % 
AGV Enterprises LLC dba Jet’s
Pizza #42
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/31/2024       54.8       49.2       42.0       0.02 % 
Southeast Chicago Soccer, Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2038       51.3       49.1       50.5       0.02 % 
Trading Group 3 Inc     Nonstore Retailers       Term Loan       Prime plus 2.75%       8/28/2025       50.0       49.1       41.3       0.02 % 
Java Warung, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/19/2038       51.0       48.4       50.0       0.02 % 
DRV Enterprise, Inc. dba Cici’s
Pizza # 339
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/26/2022       65.0       48.2       48.8       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       47.5       46.1       0.02 % 
Highway Striping Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/30/2024       53.1       47.3       44.4       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       47.3       40.4       0.02 % 
CJR LLC (EPC) and PowerWash Plus, Inc. (OC)     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/30/2024       53.0       46.9       45.8       0.02 % 
Alexandra Afentoulides dba Vi’s Pizza Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/11/2040       46.3       46.3       47.1       0.02 % 
Screenmobile Management Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       8/14/2025       47.0       46.1       39.2       0.02 % 
Will Zac Management LLC dba Papa John’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/19/2024       48.8       46.1       45.9       0.02 % 
Any Garment Cleaner-East Brunswick, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/18/2023       53.8       45.7       44.8       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       45.6       45.9       0.02 % 
Chickamauga Properties, Inc. and MSW Enterprises, LLP     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       10/19/2022       59.8       45.0       45.5       0.02 % 
LABH, Inc. t/a Ramada Ltd.     Accommodation       Term Loan       Prime plus 2.25%       9/27/2024       555.0       44.9       45.0       0.02 % 
B for Brunette     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/10/2023       53.4       44.9       41.1       0.02 % 
Delta Partners, LLC dba Delta Carwash     Repair and Maintenance       Term Loan       Prime plus 2.5%       4/5/2029       280.9       44.8       45.7       0.02 % 
Rudy & Louise Chavez dba Clyde’s Auto and Furniture Upholstery     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/2/2035       50.1       44.7       46.6       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-85


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Stellar Environmental LLC     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       3/18/2023     $ 56.3     $ 44.3     $ 44.5       0.02 % 
Alyssa Corp dba Knights Inn     Accommodation       Term Loan       Prime plus 2.25%       9/30/2023       350.0       44.2       44.3       0.02 % 
Jatcoia, LLC dba Plato’s Closet     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       8/15/2023       65.0       44.2       44.3       0.02 % 
MM and M Management Inc dba Pizza Artista     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/19/2025       46.3       44.0       37.4       0.02 % 
Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC     Truck Transportation       Term Loan       Prime plus 2.75%       7/17/2023       53.8       43.8       39.9       0.02 % 
Sound Coaching Inc     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       4/14/2025       44.4       42.5       35.3       0.02 % 
Jaymie Hazard dba Indigo Hair Studio and Day Spa     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/20/2040       42.9       42.4       40.7       0.02 % 
Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/16/2021       62.5       41.6       42.2       0.02 % 
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       41.0       41.7       0.02 % 
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       40.9       42.8       0.02 % 
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       40.8       40.8       0.02 % 
Excel RP, Inc./Kevin and Joann Foley     Machinery Manufacturing       Term Loan       Prime plus 2.75%       7/8/2028       50.0       40.1       41.2       0.02 % 
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       39.8       40.0       0.02 % 
Financial Network Recovery     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/26/2025       40.0       39.3       33.1       0.02 % 
Jojan, Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.25%       12/18/2031       204.8       39.2       39.4       0.02 % 
All American Printing     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/26/2032       69.8       39.0       40.6       0.02 % 
Play and Stay LLC dba Zoom Room Tinton Falls     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/18/2024       42.1       38.8       32.2       0.02 % 
K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       10/26/2021       58.8       38.8       38.7       0.02 % 
Legacy Estate Planning Inc dba American Casket Enterprises     Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/21/2024       42.0       38.8       32.2       0.02 % 
Valiev Ballet Academy, Inc     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       8/12/2036       91.5       38.8       40.4       0.02 % 
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       38.7       35.8       0.02 % 
Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta     Educational Services       Term Loan       Prime plus 2.75%       9/20/2023       46.3       38.6       35.9       0.02 % 
Scoville Plumbing & Heating Inc and Thomas P. Scoville     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/25/2022       50.0       38.3       38.7       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-86


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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 (EPC) and Almas Child Day Care Center     Social Assistance       Term Loan       Prime plus 2.75%       9/11/2038     $ 39.5     $ 37.9     $ 39.0       0.02 % 
Lahoba, LLC dba Papa John’s
Pizza
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/30/2034       42.5       37.3       39.0       0.02 % 
Orange County Cleaning Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       8/27/2024       41.3       37.3       31.0       0.02 % 
Lodin Medical Imaging, LLC dba Watson Imaging Center     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/1/2020       66.4       37.3       37.7       0.02 % 
Janice B. McShan and The Metropolitan Day School, LLC     Social Assistance       Term Loan       Prime plus 2.75%       10/31/2023       42.8       36.9       36.8       0.02 % 
Aiello’s Pizzeria LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/18/2024       42.8       36.5       34.2       0.02 % 
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       36.2       36.5       0.02 % 
ENI Inc. dba ENI Group, Inc     Other Information Services       Term Loan       Prime plus 2.75%       12/11/2025       36.0       36.0       31.8       0.02 % 
Capital Scrap Metal LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/18/2025       36.0       36.0       30.7       0.02 % 
KIND-ER-ZZ Inc dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/15/2022       50.0       35.7       35.6       0.02 % 
Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis     Social Assistance       Term Loan       Prime plus 2.75%       8/30/2023       43.3       35.6       35.1       0.02 % 
Babie Bunnie Enterprises Inc dba Triangle Mothercare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/28/2027       46.3       35.4       34.7       0.02 % 
Dave Kris, and MDK Ram Corp.     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/5/2026       221.0       35.0       35.9       0.02 % 
Actknowledge, Inc dba Actknowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/21/2021       57.3       34.7       35.1       0.02 % 
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       34.3       35.0       0.02 % 
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       34.3       28.6       0.01 % 
CPN Motel, L.L.C. dba American Motor Lodge     Accommodation       Term Loan       Prime plus 2.25%       4/30/2024       379.0       34.0       34.1       0.02 % 
Smooth Grounds, Inc.     Food Services and Drinking Places       Term Loan       7.75%       10/11/2016       64.5       33.9       34.1       0.02 % 
Naseeb Corporation     Accommodation       Term Loan       Prime plus 2.25%       3/31/2024       402.5       33.1       33.1       0.02 % 
Harbor Ventilation Inc and Estes Investment, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2038       92.1       32.8       33.7       0.02 % 
Kino Oil of Texas, LLC dba Kino Oil     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       8/27/2020       60.0       32.6       32.9       0.02 % 
My Jewels, LLC dba The UPS Store #6712     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/7/2025       56.3       32.4       27.3       0.01 % 
Kinisi, Inc. dba The River North UPS Store     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/18/2024       41.3       32.2       31.2       0.02 % 
Center-Mark Car Wash, Ltd     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/18/2024       221.3       30.7       31.4       0.02 % 
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       30.5       31.8       0.02 % 
Dream Envy, Ltd. d/b/a Massage Envy     Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/9/2018       88.0       30.4       30.7       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-87


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Deesha Corporation, Inc. dba Best Inn & Suites     Accommodation       Term Loan       Prime plus 2.25%       2/14/2025     $ 250.0     $ 30.0     $ 30.1       0.01 % 
Twietmeyer Dentistry PA     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2017       148.9       29.0       29.2       0.01 % 
CMA Consulting dba Construction Management Associates     Construction of Buildings       Term Loan       Prime plus 2.75%       12/11/2019       58.5       28.6       28.7       0.01 % 
North Atlanta RV Rentals LLC     Rental and Leasing Services       Term Loan       Prime plus 2.75%       6/29/2025       144.3       28.2       23.5       0.01 % 
Little People’s Village, LLC dba Little People’s Village     Social Assistance       Term Loan       Prime plus 2.75%       1/31/2036       31.1       28.0       29.2       0.01 % 
Maruti, Inc     Accommodation       Term Loan       Prime plus 2.25%       11/25/2024       220.0       27.9       28.0       0.01 % 
A & A Acquisition, Inc. dba A & A International     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       2/15/2018       100.0       26.8       27.0       0.01 % 
ActKnowledge, Inc dba ActKnowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/30/2020       50.0       26.5       26.9       0.01 % 
Planet Verte, LLC dba Audio Unlimited of Oceanside     Administrative and Support Services       Term Loan       Prime plus 2.75%       11/28/2019       57.0       26.5       26.6       0.01 % 
Seven Stars Enterprises, Inc. dba Atlanta Bread Company     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2018       86.3       26.4       26.6       0.01 % 
K & D Family and Associates, Inc. dba Philly Pretzel Factory     Food and Beverage Stores       Term Loan       Prime plus 2.75%       8/5/2018       81.3       26.3       26.5       0.01 % 
39581 Garfield, LLC and Tricounty Neurological Associates, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/30/2036       28.5       25.9       26.9       0.01 % 
Craig R Freehauf d/b/a Lincoln Theatre     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       5/31/2022       47.9       25.3       25.7       0.01 % 
Shree OM Lodging, LLC dba
Royal Inn
    Accommodation       Term Loan       Prime plus 2.75%       12/17/2035       27.7       24.9       25.9       0.01 % 
Lincoln Park Physical Therapy     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/20/2020       43.5       24.4       24.7       0.01 % 
Aldine Funeral Chapel, LLC dba Aldine Funeral Chapel     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/8/2038       73.8       24.0       24.9       0.01 % 
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       22.8       23.0       0.01 % 
B & J Manufacturing Corporation and Benson Realty Trust     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2%       3/30/2021       250.0       22.6       22.4       0.01 % 
Gain Laxmi, Inc. dba Super 8
Motel
    Accommodation       Term Loan       Prime plus 2.25%       5/31/2023       202.5       22.5       22.5       0.01 % 
RDT Enterprises, L.L.C.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/12/2025       22.5       22.5       20.9       0.01 % 
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       22.5       19.0       0.01 % 
AGR Foodmart Inc dba Nashua Road Mobil     Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2025       22.5       22.5       21.1       0.01 % 
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       22.5       21.2       0.01 % 
ADMO Inc dba Mid States Equipment     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       10/8/2025       22.5       22.4       19.3       0.01 % 
Insurance Fire & Water Restorations, LLC     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       10/23/2025       22.5       22.4       21.0       0.01 % 
New Hampshire Precision Metal Fabricators, Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/23/2025       22.5       22.4       22.3       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-88


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Bisson Transportation Inc dba I & R Associates and Document
Security
    Truck Transportation       Term Loan       Prime plus 2.75%       10/30/2025     $ 22.5     $ 22.4     $ 20.8       0.01 % 
Binky’s Vapes LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/30/2025       22.5       22.2       18.7       0.01 % 
Planet Verte, LLC d/b/a Audio Unlimited     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/20/2020       40.0       22.0       22.0       0.01 % 
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       22.0       22.3       0.01 % 
Smart Artists Inc.     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       7/23/2025       22.5       21.9       18.5       0.01 % 
Delray Scrap Recycling LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       22.5       21.8       18.4       0.01 % 
Square Deal Siding Company, LLC dba Square Deal Siding
Company
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/18/2025       22.5       21.8       21.7       0.01 % 
Evinger PA One, Inc. dba Postal Annex, Falcon     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       6/24/2025       22.5       21.8       19.3       0.01 % 
E & G Enterprises LLC dba Comfort Keepers     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/26/2025       22.5       21.8       18.2       0.01 % 
Members Only Software     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2020       40.3       21.8       21.9       0.01 % 
RJI Services, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/23/2025       22.5       21.6       18.0       0.01 % 
KenBro Enterprises LLC dba Hearing Aids by Zounds-Cherry Hill     Health and Personal Care Stores       Term Loan       Prime plus 2.75%       10/18/2023       25.8       21.5       20.9       0.01 % 
Giacchino Maritime Consultants
Inc
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/17/2025       22.5       21.5       17.9       0.01 % 
Ragazza Restaurant Group, Inc. dba Bambolina     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/21/2025       22.5       21.5       18.8       0.01 % 
Diamond Solutions LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       4/21/2025       22.5       21.5       17.9       0.01 % 
Gurtej Singh and Ranjit Kaur dba Food Fair Market     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/18/2025       22.5       21.4       17.8       0.01 % 
Zero-In Media Inc     Data Processing, Hosting, and Related Services       Term Loan       Prime plus 2.75%       3/25/2025       22.5       21.4       17.8       0.01 % 
Pen Tex Inc dba The UPS Store     Administrative and Support Services       Term Loan       Prime plus 2.75%       5/20/2025       22.0       21.2       17.6       0.01 % 
Trading Group 3, Inc.     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/26/2024       22.5       20.8       17.3       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       20.7       20.7       0.01 % 
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       20.5       17.8       0.01 % 
Jatcoia 60056, LLC dba Style
Encore
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       3/31/2025       22.3       20.4       19.1       0.01 % 
H.H. Leonards Trust and Potomac Fund LLC and The 2020 O Street Corporation     Accommodation       Term Loan       Prime plus 2.75%       7/23/2020       62.0       20.3       20.5       0.01 % 
TJU-DGT Inc dba The Lorenz
Cafe
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/26/2029       20.6       20.2       20.0       0.01 % 
L&S Insurance & Financial Services Inc     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       7/25/2024       22.5       20.2       17.1       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-89


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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     $ 20.2     $ 20.7       0.01 % 
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       20.2       20.4       0.01 % 
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       20.0       18.7       0.01 % 
Pocono Coated Products, LLC     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/30/2024       22.5       19.9       19.5       0.01 % 
Palmabak Inc dba Mami Nora’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/22/2025       21.5       19.7       19.5       0.01 % 
Diag, LLC dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/21/2020       37.5       19.4       19.5       0.01 % 
One Hour Jewelry Repair Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/14/2024       20.6       18.9       15.7       0.01 % 
MCF Forte LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/29/2025       18.8       18.8       16.0       0.01 % 
Carolina Beefs, LLC dba Beef O’Brady’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/13/2025       19.5       18.6       15.5       0.01 % 
Icore Enterprises Inc dba Air Flow Filters Inc     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       1/15/2024       21.8       18.6       18.7       0.01 % 
Caribbean Concepts, Inc. dba Quick Bleach     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       8/12/2023       22.5       18.6       17.3       0.01 % 
M and C Renovations Inc     Construction of Buildings       Term Loan       Prime plus 2.75%       10/31/2024       20.3       18.6       15.5       0.01 % 
Tammy’s Bakery, Inc. dba Tammy’s Bakery     Food Manufacturing       Term Loan       Prime plus 2.75%       12/10/2017       71.8       18.5       18.6       0.01 % 
Min Hui Lin     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2028       134.3       18.5       19.1       0.01 % 
Major Queens Body & Fender
Corp
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/10/2021       28.6       18.2       18.5       0.01 % 
Shuttle Car Wash, Inc. dba Shuttle Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.25%       11/10/2028       109.8       18.2       18.2       0.01 % 
Gray Tree Service, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2018       50.0       18.2       18.3       0.01 % 
Hattingh Incorporated dba Prosthetic Care Facility     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/21/2025       18.0       18.0       16.0       0.01 % 
Hurshell Leon Dutton dba High Jump Party Rentals     Rental and Leasing Services       Term Loan       Prime plus 2.75%       11/30/2025       17.6       17.6       17.1       0.01 % 
Boilermaker Industries LLC dba PostNet     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/9/2024       18.8       17.5       16.1       0.01 % 
The Amendments Group LLC dba Brightstar     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/17/2022       22.5       17.2       17.4       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       17.0       15.9       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       16.8       16.5       0.01 % 
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       16.1       16.0       0.01 % 
St Judes Physical Therapy P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/19/2022       21.0       15.9       16.1       0.01 % 
Tri-State Remodeling & Investments, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/11/2025       15.9       15.9       15.2       0.01 % 
Panditos LLC dba White Lotus Home     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       12/28/2025       15.9       15.9       13.4       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-90


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Opes Campitor Corporation dba Frux Documents     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/20/2025     $ 16.5     $ 15.9     $ 13.5       0.01 % 
JSIL LLC dba Blackstones Hairdressing     Personal and Laundry Services       Term Loan       Prime plus 2.75%       8/16/2023       19.5       15.8       14.9       0.01 % 
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       15.8       16.2       0.01 % 
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       15.8       15.0       0.01 % 
Vanderhoof LLC dba Soxfords     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/18/2025       15.9       15.7       13.2       0.01 % 
Vallmar Studios, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/21/2025       15.8       15.6       13.1       0.01 % 
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       15.6       13.8       0.01 % 
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       15.5       12.9       0.01 % 
Myclean Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/29/2025       15.9       15.4       12.8       0.01 % 
Kings Laundry, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/30/2017       64.5       15.3       15.4       0.01 % 
Balthazar Management Virgin Islands, LLC dba The Beach
Cafe
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/22/2025       15.8       15.3       15.2       0.01 % 
Karis, Inc.     Accommodation       Term Loan       Prime plus 2%       12/22/2023       148.8       15.0       14.9       0.01 % 
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       15.0       15.6       0.01 % 
Bradley Stinson and Associates Inc     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       11/19/2025       15.0       15.0       12.6       0.01 % 
Elite Institute LLC dba Huntington Learning Center     Educational Services       Term Loan       Prime plus 2.75%       8/28/2025       15.0       14.9       12.6       0.01 % 
Zouk, Ltd. dba Palma     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/25/2020       27.5       14.7       14.9       0.01 % 
Graphish Studio, Inc. and Scott Fishoff     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/14/2022       20.3       14.6       14.6       0.01 % 
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       14.6       14.6       0.01 % 
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       14.6       14.8       0.01 % 
Vision Network Solutions, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/12/2022       19.5       14.5       14.1       0.01 % 
PM Cassidy Enterprises, Inc. dba Junk King     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       6/19/2025       14.9       14.4       12.0       0.01 % 
Orchid Enterprises Inc dba Assisting Hands of Sussex County     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/24/2025       15.0       14.3       12.0       0.01 % 
Windsor Direct Distribution LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       10/26/2025       14.3       14.2       11.9       0.01 % 
Atlas Mountain Construction LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       1/28/2024       16.5       14.1       14.2       0.01 % 
Michael S. Korfe dba North Valley Auto Repair     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/24/2036       15.5       14.0       14.6       0.01 % 
Burks & Sons Development LLC dba Tropical Smoothie Cafe     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/22/2018       49.8       13.9       14.0       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-91


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Laura L. Smith dba Lisa Smith Studio     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/3/2024     $ 15.0     $ 13.8     $ 11.4       0.01 % 
Insurance Problem Solvers LLC     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       5/20/2023       17.1       13.7       13.3       0.01 % 
Gator Communications Group, LLC dba Harvard Printing Group     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       3/27/2023       17.3       13.7       13.6       0.01 % 
Duttakrupa, LLC dba Birmingham Motor Court     Accommodation       Term Loan       Prime plus 2.25%       9/8/2023       98.8       13.6       13.6       0.01 % 
Maynard Enterprises Inc dba Fastsigns of Texarkana     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/18/2023       16.1       13.5       12.6       0.01 % 
Daniel W. Stark dba Mountain Valley Lodge and RV Park     Accommodation       Term Loan       Prime plus 2.75%       9/25/2040       13.5       13.5       13.7       0.01 % 
Willington Hills Equestrian Center LLC     Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       10/19/2022       85.0       13.2       13.5       0.01 % 
Atlanta Vascular Research Organization, Inc dba Atlanta Vascular Found     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/6/2020       24.3       13.2       13.4       0.01 % 
AcuCall LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/21/2023       15.8       13.1       12.0       0.01 % 
Nicor LLC dba Fibrenew
Sacramento
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/5/2022       13.8       13.1       10.9       0.01 % 
John B. Houston Funeral Home, Inc. dba George E. Cushnie Funeral Home     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/19/2028       78.8       13.0       13.4       0.01 % 
Clean Brothers Company Inc dba ServPro of North Washington County     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/21/2022       17.0       12.8       12.6       0.01 % 
1911 East Main Street Holdings, Corp     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/18/2032       15.8       12.8       13.3       0.01 % 
WeaverVentures, Inc dba The UPS Store     Postal Service       Term Loan       Prime plus 2.75%       7/28/2020       23.8       12.8       12.9       0.01 % 
Pegasus Automotive, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/23/2022       112.5       12.4       12.7       0.01 % 
S.Drake LLC dba Express Employment Professionals of Ann Arbor, Michigan     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/31/2023       18.8       12.3       11.4       0.01 % 
Blue Ox Trucking Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       12/4/2025       12.3       12.3       12.3       0.01 % 
Lefont Theaters Inc.     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       12/19/2023       14.4       12.2       11.7       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       12.2       12.6       0.01 % 
DeRidder Chiropractic LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/25/2024       13.2       12.2       11.9       0.01 % 
AJK Enterprise LLC dba AJK Enterprise LLC     Truck Transportation       Term Loan       Prime plus 2.75%       8/27/2022       16.5       12.2       12.2       0.01 % 
P. Agrino, Inc. dba Andover Diner     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/18/2021       150.0       12.0       12.2       0.01 % 
Nelson Financial Services LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/24/2025       12.5       11.7       9.8       % 
North Country Transport, LLC     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       2/6/2023       15.0       11.7       11.8       0.01 % 
Abbondanza Market LLC dba Hampton Falls Village Market     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/18/2025       73.8       11.7       11.7       0.01 % 
Indoor Playgrounds Limited Liability Company dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       4/5/2022       19.5       11.5       11.6       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-92


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Loriet LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/24/2025     $ 12.0     $ 11.4     $ 9.5       % 
Diamond Memorials Incorporated     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/25/2023       14.3       11.3       10.3       0.01 % 
DWeb Studio, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/25/2025       11.3       11.3       9.5       % 
CJ Park Inc. dba Kidville Midtown West     Educational Services       Term Loan       Prime plus 2.75%       6/25/2020       26.4       11.1       11.2       0.01 % 
Play and Learn Child Care and School Inc     Social Assistance       Term Loan       Prime plus 2.75%       11/23/2025       11.1       11.1       11.1       0.01 % 
Margab, Inc. dba Smoothie King     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/28/2017       44.0       11.0       11.1       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       11.0       11.0       0.01 % 
Learning Skills LLC and Christopher Shrope     Educational Services       Term Loan       Prime plus 2.75%       12/17/2025       10.8       10.8       9.1       % 
Georgia Safe Sidewalks LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/27/2022       15.0       10.8       10.7       0.01 % 
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       10.7       10.6       0.01 % 
Kino Oil of Texas LLC dba Kino Company and B&D Oil     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       8/27/2035       12.0       10.5       10.9       0.01 % 
Chong Hun Im dba Kim’s Market     Food and Beverage Stores       Term Loan       Prime plus 2.5%       2/27/2024       80.0       10.5       10.6       0.01 % 
M. Krishna, Inc. dba Super 8
Motel
    Accommodation       Term Loan       Prime plus 2%       3/20/2025       250.0       10.3       10.2       0.01 % 
Demand Printing Solutions, Inc. and MLM Enterprises, LLC d/b/a Demand Printing Solutions     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/27/2021       16.5       10.3       10.4       0.01 % 
K9 Bytes, Inc & Epazz, Inc     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       9/30/2020       18.5       10.2       10.2       0.01 % 
Prestigious LifeCare for Seniors
LLC
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025       9.8       9.7       8.8       % 
Dirk’s Trucking, L.L.C. dba Dirk’s Trucking     Truck Transportation       Term Loan       Prime plus 2.75%       9/17/2020       17.7       9.7       9.7       % 
Taste of Inverness, Inc. dba China Garden     Food Services and Drinking Places       Term Loan       Prime plus 2%       6/29/2025       73.8       9.6       9.5       % 
Jennifer T Campbell     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       7/31/2025       9.8       9.5       8.0       % 
Pedzik’s Pets, LLC     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       3/31/2030       53.5       9.4       9.8       % 
Head To Toe Personalized Pampering, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/27/2031       52.0       9.4       9.7       % 
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       9.2       9.2       % 
Capitol Compliance Associates Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/30/2025       15.9       9.0       7.5       % 
It’s A Buffalo     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/26/2016       219.8       8.9       9.0       % 
Oz B. Zamir dba Zamir Marble & Granite     Specialty Trade Contractors       Term Loan       Prime plus 2.5%       8/6/2028       54.0       8.7       8.8       % 
Villela CPA PL     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/27/2025       9.0       8.7       7.5       % 
MiJoy Inc dba Imo’s Pizza     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/18/2025       8.3       8.1       6.9       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-93


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Higher Grounds Community Coffeehouse, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/2/2025     $ 8.3     $ 8.1     $ 7.1       % 
Kelly Chon LLC dba Shi-Golf     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       7/29/2021       17.5       8.1       8.2       % 
Joey O’s LLC and Jennifer Olszewski     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/7/2024       13.1       8.0       6.7       % 
Aaron Delgado and Associates Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       7/22/2025       8.2       8.0       6.7       % 
XCESSIVE THROTTLE, INC dba Jake’s Roadhouse     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/29/2025       8.3       7.9       6.6       % 
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       7.9       8.1       % 
The Conibear Corporation and Conibear Trucking, LLC     Truck Transportation       Term Loan       Prime plus 2.75%       12/5/2024       12.0       7.9       7.4       % 
RAB Services, Inc. & Professional Floor Installations     Specialty Trade Contractors       Term Loan       Prime plus 2.5%       1/31/2023       62.5       7.9       7.9       % 
JRJG, Inc. dba BrightStar HealthCare-Naperville/Oak
Brook
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/23/2020       15.0       7.7       7.7       % 
RDJ Maayaa Inc dba RDJ Distributors     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/23/2024       8.7       7.6       7.0       % 
Jung Design Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/20/2022       8.4       7.6       6.3       % 
Cares, Inc dba Dumpling Grounds Day Care Center     Social Assistance       Term Loan       Prime plus 2.75%       12/10/2025       7.5       7.5       7.3       % 
Caring Hands Pediatrics, P.C. dba Caring Hands Pediatrics     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/9/2020       14.5       7.4       7.5       % 
A-1 Quality Services Corporation     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/29/2023       8.9       7.4       6.7       % 
D&L Rescources, Inc. dba The UPS Store     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/27/2022       9.8       7.4       7.2       % 
RJS Service Corporation     Gasoline Stations       Term Loan       Prime plus 2.75%       8/20/2021       79.0       7.3       7.4       % 
Stillwell Ave Prep School     Social Assistance       Term Loan       Prime plus 2.75%       1/14/2023       72.0       7.2       7.3       % 
Envy Salon & Spa LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/4/2018       20.3       7.2       7.2       % 
Howell Gun Works LLC     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       11/14/2023       8.3       7.1       6.4       % 
ATC Fitness, LLC dba Around the Clock Fitness     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2022       10.2       7.1       7.1       % 
Gilbert Chiropractic Clinic, Inc.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/7/2018       22.5       6.9       7.0       % 
RCB Enterprises, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2017       21.2       6.6       6.6       % 
ATC Fitness LLC dba Around the Clock Fitness     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2019       15.0       6.3       6.3       % 
Five Corners, Ltd.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2019       85.0       6.1       6.2       % 
Tanner Optical, Inc. dba Murphy Eye Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/27/2022       8.3       5.8       5.9       % 
Food & Beverage Associates Of N.J. Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/11/2021       10.0       5.6       5.7       % 
Track Side Collision & Tire, Inc.     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/16/2025       44.8       5.2       5.4       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-94


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
OrthoQuest, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2%       3/12/2022     $ 56.8     $ 5.1     $ 5.1       % 
Demand Printing Solutions, Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/12/2019       10.0       4.7       4.8       % 
Bhailal Patel dba New Falls Motel     Accommodation       Term Loan       Prime plus 2.75%       3/27/2023       100.0       4.6       4.7       % 
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       4.5       4.5       % 
Gourmet to You, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2019       12.1       4.5       4.5       % 
David A. Nusblatt, D.M.D, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/11/2019       9.0       4.3       4.3       % 
South Dade Restoration Corp. dba Servpro of Kendall/Pinecrest     Administrative and Support Services       Term Loan       Prime plus 2.75%       8/10/2016       61.8       4.0       4.0       % 
ValleyStar, Inc. dba BrightStar Healthcare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       7.5       4.0       4.0       % 
Moonlight Multi Media Production, Inc.     Other Information Services       Term Loan       5.3%       2/1/2025       19.7       3.9       4.0       % 
Patrageous Enterprises, LLC dba Incredibly Edible Delites of
Laurel
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/29/2020       7.6       3.7       3.7       % 
DDLK Investments LLC d/b/a Smoothie King     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/30/2020       7.5       3.6       3.6       % 
Christopher F. Bohon & Pamela D. Bohon     Social Assistance       Term Loan       Prime plus 2.75%       10/28/2026       14.2       3.5       3.6       % 
Enewhere Custom Canvas, LLC     Textile Product Mills       Term Loan       Prime plus 2.75%       2/15/2018       12.0       3.4       3.4       % 
Quality Engraving Services Inc. and Ian M. Schnaitman     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       10/17/2017       15.0       3.3       3.3       % 
ValleyStar, Inc. dba BrightStar HealthCare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       0.6       3.2       3.2       % 
Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/26/2020       6.3       3.2       3.2       % 
Kyoshi Enterprises, LLC     Educational Services       Term Loan       Prime plus 2.75%       12/29/2016       22.5       3.1       3.1       % 
Champion Pest Control Systems,
Inc.
    Administrative and Support Services       Term Loan       6%       1/15/2016       39.0       3.0             % 
Grapevine Professional Services,
Inc.
    Administrative and Support Services       Term Loan       Prime plus 2.75%       1/22/2019       8.2       2.9       2.9       % 
Louis B. Smith dba LAQ Funeral Coach     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/15/2017       12.6       2.8       2.8       % 
Spain Street LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/29/2017       63.0       2.8       2.8       % 
Computer Renaissance dba Dante IT Services, Inc.     Electronics and Appliance Stores       Term Loan       Prime plus 3.75%       3/1/2018       100.0       2.7       2.8       % 
Ralph Werner dba Werner Transmissions     Gasoline Stations       Term Loan       Prime plus 2.75%       12/29/2021       26.6       2.7       2.8       % 
Flourishing Fruits, LLC dba Edible Arrangements     Food Manufacturing       Term Loan       Prime plus 2.75%       12/29/2017       21.1       2.7       2.7       % 
Saan M.Saelee dba Saelee’s Delivery Service     Truck Transportation       Term Loan       Prime plus 2.75%       3/12/2018       9.8       2.7       2.7       % 
Daniel S. Fitzpatrick dba Danny’s Mobile Appearance Reconditioning Service     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/29/2018       9.4       2.6       2.7       % 
Flint Batteries, LLC     General Merchandise Stores       Term Loan       Prime plus 2.75%       7/21/2016       46.9       2.4       2.4       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-95


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Danjam Enterprises, LLC dba Ariel Dental Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/30/2021     $ 3.8     $ 2.3     $ 2.4       % 
L.C.N. Investments, L.L.C. dba Max Muscle Sports Nutrition     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       5/27/2017       12.8       2.1       2.2       % 
Inflate World Corporation     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/30/2018       7.5       2.0       2.0       % 
Seo’s Paradise Cleaners, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/19/2018       9.8       1.9       2.0       % 
Timothy S. Strange dba Strange’s Mobile Apperance Reconditioning Service     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/17/2017       8.4       1.6       1.7       % 
Golden Elevator Co., Inc.     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       1/31/2022       50.0       1.6       1.7       % 
Flint Batteries LLC dba Batteries Plus of Flint     General Merchandise Stores       Term Loan       Prime plus 2.75%       8/29/2017       9.0       1.5       1.6       % 
MJ Mortgage & Tax Services, Inc.     Credit Intermediation and Related Activities       Term Loan       Prime plus 2.75%       11/14/2017       6.9       1.5       1.5       % 
CCIPTA, LLC     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       1/17/2017       47.0       1.5       1.5       % 
Nora A. Palma and Julio O Villcas     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/27/2017       56.3       1.4       1.5       % 
Delyannis Iron Works     Fabricated Metal Product Manufacturing       Term Loan       6%       12/8/2022       16.0       1.4       1.5       % 
Zeroln Media LLC     Data Processing, Hosting, and Related Services       Term Loan       Prime plus 2.75%       4/25/2017       7.5       1.4       1.4       % 
Nelson Financial Services, LLC     Scenic and Sightseeing Transportation       Term Loan       Prime plus 2.75%       9/2/2016       57.0       1.3       1.3       % 
Pro Levin Yoga, Incorporated d.b.a. Bikram’s Yoga College of India Sug     Educational Services       Term Loan       Prime plus 2.75%       5/12/2016       16.4       0.9       0.9       % 
No Thirst Software LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/26/2017       6.8       0.9       0.9       % 
New Economic Methods LLC dba Rita’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/15/2020       24.8       0.9       0.9       % 
Saul A. Ramirez and Norma L. Trujillo     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/31/2017       6.0       0.9       0.9       % 
Eric R. Wise, D.C. dba Jamacha-Chase Chiropractic     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/30/2017       15.6       0.6       0.6       % 
Contractors Pumping Service, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/3/2016       9.9       0.4       0.4       % 
Tesserah Tile Design, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2016       7.1       0.4       0.4       % 
Healthcare Interventions, Inc. dba Brightstar HealthCare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/15/2016       8.3       0.4       0.4       % 
Maynard Enterprises, Inc.     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/22/2016       22.5       0.3       0.4       % 
Vincent Allen Fleece dba Living Well Accessories and Water Camel     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/1/2016       3.8       0.3       0.3       % 
Spencer Fitness, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/11/2016       6.0                   % 
Chez Rurene Bakery     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/20/2017       150.0       31.6       45.2       0.02 % 
Total Performing SBA Unguaranteed Investments                           $ 181,518.3     $ 155,980.4     $ 152,157.7       74.61%  

 
 
See accompanying notes to these consolidated financial statements.

F-96


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Non-Performing SBA Unguaranteed Investments(3)
                                                                 
* 214 North Franklin, LLC and Winter Ventures, Inc.     Nonstore Retailers       Term Loan       Prime plus 2.75%       11/29/2037     $ 146.0     $ 146.1     $ 136.9       0.07 % 
* 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       4.7       4.7       0.7       % 
* AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc.     Ambulatory Health Care Services       Term Loan       6%       3/14/2038       305.3       305.7       136.2       0.07 % 
Auto Sales, Inc.     Motor Vehicle and Parts Dealers       Term Loan       6%       8/17/2023       4.3       4.3       3.8       % 
* AWA Fabrication & Construction, L.L.C.     Fabricated Metal Product Manufacturing       Term Loan       6%       4/30/2025       34.7       34.8       24.5       0.01 % 
* Baker Sales, Inc. d/b/a Baker Sales, Inc.     Nonstore Retailers       Term Loan       6%       3/29/2036       181.5       182.0       99.9       0.05 % 
* Barnum Printing & Publishing,
Co.
    Printing and Related Support Activities       Term Loan       6%       7/29/2015       9.8       9.8       8.2       % 
* BCD Enterprises, LLC dba Progressive Tool and Nutmeg
Tool
    Fabricated Metal Product Manufacturing       Term Loan       6%       6/22/2026       290.3       290.9             % 
* Bwms Management, LLC     Food Services and Drinking Places       Term Loan       6%       7/7/2027       75.2       75.4       23.2       0.01 % 
* DC Realty, LLC dba FOGO Data Centers     Professional, Scientific, and Technical Services       Term Loan       6%       3/23/2037       697.8       699.5       563.2       0.28 % 
* DC Realty, LLC dba FOGO Data Centers     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/23/2022       206.1       206.6       182.4       0.09 % 
* Dill Street Bar and Grill Inc and WO Entertainment, Inc     Food Services and Drinking Places       Term Loan       6%       9/27/2027       104.4       104.6       23.6       0.01 % 
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown     Support Activities for Transportation       Term Loan       5.25%       12/28/2035       140.8       141.0       78.1       0.04 % 
* DocMagnet Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/23/2025       16.3       16.3             % 
* Dr. Francis E. Anders, DVM     Professional, Scientific, and Technical Services       Term Loan       6%       8/9/2015       1.6       1.6       1.6       % 
* E & I Holdings, LP & PA Farm Products, LLC     Food Manufacturing       Term Loan       6%       4/30/2030       1,234.0       1,237.1       487.3       0.24 % 
E.W. Ventures, Inc. dba Swift Cleaners & Laundry     Personal and Laundry Services       Term Loan       0%       4/18/2017       91.0       91.2       1.3       % 
* Elite Treats Enterprises, Inc. dba Rochelle Dairy Queen     Food Services and Drinking Places       Term Loan       6%       1/24/2032       131.2       131.5       95.9       0.05 % 
* Europlast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       9/26/2022       327.6       328.5       314.5       0.15 % 
* Europlast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       5/31/2023       155.2       155.6             % 
* Event Mecca LLC     Other Information Services       Term Loan       6%       4/10/2023       13.2       13.2       4.8       % 
* EZ Towing, Inc.     Support Activities for Transportation       Term Loan       6%       1/31/2023       123.2       123.5       72.8       0.04 % 
* Goetzke Chiropractic, Inc.     Ambulatory Health Care Services       Term Loan       6%       10/25/2017       2.9       2.9       2.4       % 
* Gotta Dance Studio, Inc. dba Gotta Dance Studio Academy of Performing     Educational Services       Term Loan       Prime plus 2.75%       11/16/2016       3.6       3.6       0.5       % 
* Grand Manor Realty, Inc. & Kevin LaRoe     Real Estate       Term Loan       6%       2/20/2023       18.9       19.0       18.2       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-97


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(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     $ 89.4     $ 89.5     $ 77.9       0.04 % 
Guzman Group, LLC     Rental and Leasing Services       Term Loan       6%       1/30/2016       196.9       197.4       176.2       0.09 % 
* Harrelson Materials Management, Inc     Waste Management and Remediation Services       Term Loan       6%       6/24/2021       464.5       465.7       133.7       0.07 % 
* Hybrid Racing LLC.     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       5/15/2023       100.1       100.3       44.5       0.02 % 
* Integrity Sports Group, LLC     Performing Arts, Spectator Sports, and Related Industries       Term Loan       6%       3/6/2018       14.7       14.7       12.6       0.01 % 
Island Nautical Enterprises, Inc.
(OC) and Ingwall Holdings, LLC (EPC)
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       8/14/2038       325.2       326.1       282.0       0.14 % 
* J Olson Enterprises LLC and Olson Trucking Direct, Inc.     Truck Transportation       Term Loan       6%       6/28/2025       658.9       660.5       262.5       0.13 % 
* Jenny’s Wunderland, Inc.     Social Assistance       Term Loan       6%       6/29/2036       149.7       150.1       73.6       0.04 % 
* Krishna of Orangeburg, Inc.     Accommodation       Term Loan       6%       2/20/2032       10.3       10.3             % 
* Lamson and Goodnow Manufacturing Co and Lamson and Goodnow LLC     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/28/2037       28.2       28.2             % 
* Las Torres Development LLC dba Houston Event Centers     Real Estate       Term Loan       6%       8/27/2028       51.0       51.0             % 
* LJ Parker, LLC     Administrative and Support Services       Term Loan       7%       9/8/2014       8.9       8.9       1.7       % 
* Lucil Chhor dba Baja
Fresh #159
    Food Services and Drinking Places       Term Loan       6%       12/28/2022       30.0       30.0       15.6       0.01 % 
* Milliken and Milliken, Inc. dba Milliken Wholesale Distribution     Merchant Wholesalers, Durable Goods       Term Loan       6%       6/10/2036       152.8       152.9       116.3       0.06 % 
* Mojo Brands Media, LLC     Broadcasting (except Internet)       Term Loan       6%       8/28/2023       731.9       733.7       421.1       0.21 % 
* Morris Glass and Construction     Specialty Trade Contractors       Term Loan       6%       3/7/2021       44.8       44.8       0.8       % 
* 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       12.7       0.01 % 
* Parth Dev, Ltd dba Amerihost Inn Hotel-Kenton     Accommodation       Term Loan       5.25%       10/3/2028       38.3       38.3       20.4       0.01 % 
* Professional Systems, LLC and Professional Cleaning     Administrative and Support Services       Term Loan       6%       7/30/2020       132.0       132.1       54.5       0.03 % 
Pure Water Innovations, LLC     Ambulatory Health Care Services       Term Loan       6%       9/6/2016       0.2       0.2       0.2       % 
Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC     Amusement, Gambling, and Recreation Industries       Term Loan       6%       9/14/2023       16.4       16.4       13.6       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       Prime plus 2.75%       12/20/2032       74.5       74.7       73.1       0.04 % 
* Signs of Fortune, LLC dba FastSigns     Miscellaneous Manufacturing       Term Loan       Prime plus 2.5%       4/3/2023       321.0       321.8       83.3       0.04 % 
* STK Ventures Inc dba JP Dock Service & Supply     Specialty Trade Contractors       Term Loan       6%       5/9/2037       34.1       34.1       32.7       0.02 % 
Stokes Floor Covering Company Inc. and Robert E. Rainey, Jr.     Furniture and Home Furnishings Stores       Term Loan       6%       12/29/2035       111.6       111.8       88.1       0.04 % 
* Stormwise South Florida dba Stormwise Shutters     Specialty Trade Contractors       Term Loan       6%       11/7/2036       406.6       407.6       353.6       0.17 % 
* Stormwise South Florida dba Stormwise Shutters     Specialty Trade Contractors       Term Loan       6%       11/7/2036       201.1       201.6             —%  

 
 
See accompanying notes to these consolidated financial statements.

F-98


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
* Summit Treatment Services Inc     Social Assistance       Term Loan       Prime plus 2.75%       3/11/2025     $ 21.8     $ 21.8     $       % 
* Summit Treatment Services, Inc. dba Summit Treatment Services     Social Assistance       Term Loan       Prime plus 2.75%       11/30/2037       129.3       129.6       112.8       0.06 % 
* Sunmar, Inc. dba Creative
Cooking
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/19/2035       47.1       47.2       43.3       0.02 % 
* Tequila Beaches, LLC dba Fresco Restaurant     Food Services and Drinking Places       Term Loan       6%       9/16/2021       15.8       15.8       12.0       0.01 % 
The Alba Financial Group, Inc.     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       6%       1/10/2019       6.5       6.5       1.6       % 
The Lucky Coyote, LLC     Miscellaneous Manufacturing       Term Loan       6%       5/8/2017       10.3       10.3       4.7       % 
* Top Class, Inc.     Personal and Laundry Services       Term Loan       6%       6/28/2016       1.3       1.3       0.1       % 
United Woodworking, Inc     Wood Product Manufacturing       Term Loan       6%       12/20/2022       12.5       12.5       10.5       0.01 % 
* Whirlwind Car Wash, Inc.     Repair and Maintenance       Term Loan       Prime plus 2%       8/26/2024       4.9       4.9       3.8       % 
* Winter Ventures Inc and 214 N Franklin LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       4/29/2024       56.5       56.6       28.7       0.01 % 
* Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       Prime plus 2.75%       12/23/2024       149.1       149.3       130.7       0.06 % 
* Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       Prime plus 2.75%       4/3/2029       134.4       134.5       29.4       0.01 % 
* B&B Fitness and Barbell, Inc. dba Elevations Health Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/22/2035       217.8       218.1       200.0       0.10 % 
* Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       8/8/2039       185.7       186.2       178.3       0.09 % 
Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/15/2025       689.8       691.5       662.2       0.32 % 
* Karykion, Corporation dba Karykion Corporation     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/28/2022       144.4       144.8       132.8       0.07 % 
* David M. Goens dba Superior Auto Paint & Body, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/26/2024       15.7       15.7       14.4       0.01 % 
* TechPlayZone, Inc.     Social Assistance       Term Loan       Prime plus 2.75%       1/27/2016       0.1       0.1             % 
Total Non-Performing SBA Unguaranteed Investments                           $ 10,748.0     $ 10,771.6     $ 6,197.2       3.04 % 
Total SBA Unguaranteed Investments                           $ 192,266.3     $ 166,752.0     $ 158,354.9       77.64 % 
Performing SBA Guaranteed Investments(4)
                                                                       
Jay Kevin Gremillion dba Dino Smiles Children’s Cosmetic Dentistry     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/18/2025       292.0       43.9       48.5       0.02 % 
My Jewels, LLC dba The UPS Store #6712     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/7/2025       225.0       97.2       107.4       0.05 % 
Abbondanza Market LLC dba Hampton Falls Village Market     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/18/2025       295.0       34.9       38.7       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-99


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
D&G Capital LLC dba Miami
Grill 277
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2025     $ 417.6     $ 151.6     $ 167.6       0.08 % 
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/23/2040       4,758.0       1,638.3       1,806.2       0.89 % 
401 JJS, Corp and G. Randazzo’s Trattoria Corporation     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/1/2040       211.0       102.9       115.4       0.06 % 
Total SBA Guaranteed Performing Investments                           $ 6,198.6     $ 2,068.8     $ 2,283.8       1.12 % 
Total SBA Unguaranteed and Guaranteed Investments                           $ 198,464.9     $ 168,820.8     $ 160,638.7       78.76 % 
Controlled Investments(5)
                                                                 
Advanced Cyber Security Systems, LLC(6),(15)     Data processing, hosting
and related services.
      50% Membership
Interest
      —%                               —%  
             Term Loan       3%       December
2014
      1,120.0       381.0             —%  
*Automated Merchant Services, Inc.(7),(15)     Data processing, hosting and related services.       100% Common
Stock
      —%                               —%  
CDS Business Services, Inc.(8)(15)     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       100% Common
Stock
      —%                   4,428.0       925.0       0.45 % 
             Line of Credit       Prime Plus 2.5%       August 2018       2,870.0       2,870.0       2,870.0       1.41 % 
CrystalTech Web Hosting, Inc.(11)     Data processing, hosting and related services.       100% Common
Stock
      —%                   8,764.0       21,413.9       10.50 % 
Exponential Business Development Co. Inc.(15)     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       100% Common
Stock
      —%                               —%  
*Fortress Data Management,
LLC(15)
    Data processing, hosting and related services.       100% Membership Interest       —%                               —%  
Newtek Insurance Agency,
LLC(12)(15)
    Insurance Carriers and Related Activities       100% Membership Interests       —%                         2,500.0       1.23 % 
PMTWorks Payroll, LLC(9)     Data processing, hosting and related services.       90% Membership
Interests
      —%                   700.1       1,020.0       0.50 % 
             Term Loan       10% – 12%       Various
maturities
through
September
2016
      935.0       935.0             —%  
Secure CyberGateway Services, LLC(10),(15)     Data processing, hosting and related services.       66.7%
Membership
Interests
      —%                               —%  
             Term Loan       7%       December
2016
      2,400.0       1,200.0       1,196.4       0.59 % 
Small Business Lending, Inc.(13)(15)     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       100% Common
Stock
      —%                         5,500.0       2.70 % 
*Summit Systems and Designs, LLC(14)(15)     Data processing, hosting and related services.       100% Membership Interest       —%                               —%  
Premier Payments LLC(11)     Data processing, hosting and related services.       100% Membership Interest       —%                   16,503.0       16,503.0       8.09 % 
Universal Processing Services of Wisconsin, LLC(11)(15)     Data processing, hosting and related services.       100% Membership Interest       —%                         52,448.1       25.72 % 
Total Controlled Investments                           $ 7,325.0     $ 35,781.1     $ 104,376.4       51.18%  

 
 
See accompanying notes to these consolidated financial statements.

F-100


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Non-control/Non-affiliate Investments
                                                                 
Titanium Asset Management LLC     Administrative and Support Services       Term Loan       3%       July 2017     $ 2,200.0     $ 1,847.4     $ 1,823.8       0.89 % 
             Warrants       —%                               % 
                             $ 2,200.0     $ 1,847.4     $ 1,823.8       0.89 % 
Investments in Money Market Funds                           $     $ 35.0     $ 35.0       0.02 % 
Total Investments                           $ 207,989.9     $ 206,484.3     $ 266,873.9       130.85 % 

* 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 3.25% as of December 31, 2015.
(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. See Note 5 in the accompanying notes to the consolidated financial statements for transactions during the year ended December 31, 2015 with affiliates the Company is deemed to control.
(6) 50% owned by Wilshire Holdings II, 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) 28.20% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 25.89% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 45.91% owned by 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 II, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by non-affiliate.

 
 
See accompanying notes to these consolidated financial statements.

F-101


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2015
(In Thousands)

(10) 66.7% owned by Wilshire Holdings II, Inc. (a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco1., Inc. (a subsidiary of Newtek Business Services Corp.).
(12) 100% owned by Wilshire Holdings II, Inc. (a subsidiary 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. and Wilshire Holdings II, Inc., both subsidiaries of Newtek Business Services Corp.).
(15) 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.
(16) 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.
(17) 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, 2015, 5.3% of total assets are non-qualifying assets.

As of December 31, 2015, the federal tax cost of investments was $200,004,000 resulting in estimated gross unrealized gains and losses of $81,538,000 and $14,669,000, respectively.

 
 
See accompanying notes to these consolidated financial statements.

F-102


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:

On November 12, 2014, Newtek Business Services, Inc. merged with and into Newtek Business Services Corp. (“NBS”), a newly-formed Maryland corporation, for the purpose of reincorporating in Maryland (the “Merger”), and thereafter filed an election to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). This transaction is referred to as the “Conversion” or “BDC Conversion”. All subsidiaries and controlled portfolio companies became the property of Newtek Business Services Corp. as part of the Merger. Except as otherwise noted, the terms “we,” “us,” “our,” “Company” and “Newtek” refer to Newtek Business Services, Inc. prior to the Conversion and its successor, Newtek Business Services Corp. following the Conversion.

Description of Business and Basis of Presentation Prior to BDC Conversion

Prior to the Conversion, Newtek Business Services, Inc. was a holding company for several wholly- and majority-owned subsidiaries, which included twelve certified capital companies which are referred to as Capcos, and several portfolio companies in which the Capcos own non-controlling or minority interests. The Company provided a “one-stop-shop” for business services to the small- and medium-sized business market and uses state of the art web-based proprietary technology to be a low cost acquirer and provider of products and services. The Company partners with companies, credit unions, and associations to offer its services.

Prior to the BDC Conversion, the Company’s principal business segments were:

Electronic Payment Processing:  Marketing third party credit card processing and check approval services to the small and medium-sized business market under the name of Newtek Merchant Solutions (“NMS” or “UPSW”).

Managed Technology Solutions:  CrystalTech Web Hosting, Inc., d/b/a Newtek Technology Services (“NTS”), offers shared and dedicated web hosting, data storage and backup services, cloud computing plans and related services to the small and medium-sized business market.

Small Business Finance:  Comprised of Small Business Lending, Inc., (“SBL”) a lender service provider for third-parties that primarily services government guaranteed U.S. Small Business Administration (“SBA”) loans and non-SBA loans; Newtek Small Business Finance, LLC (“NSBF”), a nationally licensed, SBA lender that originates, sells and services loans to qualifying small businesses, which are partially guaranteed by the SBA, and CDS Business Services, Inc. d/b/a Newtek Business Credit Solutions (“NBC”) which provides receivable financing and management services.

All Other:  Businesses formed from investments made through Capco programs and others which could not be aggregated with other operating segments, including insurance and payroll processing.

Corporate Activities:  Corporate implements business strategy, directs marketing, provides technology oversight and guidance, coordinates and integrates activities of the segments, contracts with alliance partners, acquires customer opportunities, and owns our proprietary NewTracker® referral system. This segment includes revenue and expenses not allocated to other segments, including interest income, Capco management fee income and corporate operations expenses.

Capco:  Twelve certified capital companies which invest in small and medium-sized businesses. They generate non-cash income from tax credits and non-cash interest expense and insurance expenses in addition to cash management fees.

The consolidated financial statements of the Company and its subsidiaries and consolidated entities have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include all wholly- and majority-owned subsidiaries, and several portfolio companies in which the Capcos own non-controlling interest, or those variable interest entities of which Newtek is considered to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Non-controlling interests are reported below net income (loss) under the heading “Net loss attributable to non-controlling interests” in the consolidated statements of operations.

F-103


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:  – (continued)

Non-controlling interests

Non-controlling interests in results of operations of consolidated variable interest entities and majority-owned subsidiaries represents the non-controlling members’ share of the earnings or loss of the consolidated variable interest entities and majority-owned subsidiaries.

Description of Business and Basis of Presentation After BDC Conversion

Newtek Business Services Corp. (the “Company” or “Newtek”) 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 (the “Taxable Subsidiaries”), which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (the “Code”).

The following wholly-owned subsidiaries are consolidated in the financial statements of the Company:

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.

F-104


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:  – (continued)

The consolidated financial statements of the Company have been prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-K and Article 6 or 10 of Regulation S-X. In the opinion of management, the 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. All intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation.

Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:

Election to become a Business Development Company

The results of operations for 2014 are divided into two periods. The period from January 1, 2014 through November 11, 2014, reflects the Company’s results prior to operating as a BDC under the 1940 Act. The period from November 12, 2014 through December 31, 2014, reflects the Company’s results as a BDC under the 1940 Act. Accounting principles used in the preparation of the consolidated financial statements beginning November 12, 2014 are different than those of prior periods and, therefore, the financial position and results of operations of these periods are not directly comparable. The primary differences in accounting principles relate to the carrying value of debt and equity investments. Additionally, some of the Company's previously consolidated subsidiaries are now equity investments, or controlled portfolio companies, on the consolidated statements of assets and liabilities and carried at fair value. The following table reflects the cumulative effect of the BDC Conversion on November 11, 2014:

 
Cumulative Effect of Business Development Company Election on Net Assets
Deconsolidation of subsidiaries   $ 22,822  
Effect of recording debt investments at fair value     (374 ) 
Effect of recording servicing assets at fair value     960  
Effect of recording controlled investments at fair value     36,118  
Reversal of goodwill     (1,826 ) 
Other     (397 ) 
Total cumulative effect of BDC election   $ 57,303  

Fair Value

The Company applies fair value accounting to certain of its financial instruments in accordance with Accounting Standards Codification (“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 requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3.

F-105


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Any changes to the valuation methodology are reviewed by management and the Company’s 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 further description of fair value methodology in Note 3.

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.

As of July 1, 2016, the Company determined that Exponential Business Development Co., Inc. (“Exponential”), previously a controlled portfolio company, met the criteria for consolidation under ASC Topic 946. This determination was based on Exponential's purchase of membership interests in two controlled portfolio companies during the year ended December 31, 2016.

Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated statements of assets and liabilities as investments. Those assets are owned by the securitization trusts, and are included in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company.

Distributions

Dividends and distributions to the Company's common shareholders 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.

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. Unless extended or terminated by the Board, the Company expects the termination date for this new repurchase program will be on May 21, 2017.

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

F-106


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

The Company had a program which allowed it to repurchase up to 150,000 of the Company’s outstanding common shares on the open market. Under the program, purchases may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. During the year ended December 31, 2016, the Company repurchased and retired 70,000 common shares in open market transactions for approximately $866,000. 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 Repurchase Plan

The Company has a program which allows the Company to repurchase up to 10%, or $832,400 in aggregate principal amount, of its 7.50% Notes due 2022 and up to 10%, or $4,025,000 in aggregate principal amount, of its 7.00% Notes due 2021 through open market purchases, including block purchases, in such manner as will comply with the provisions of the 1940 Act and the Exchange Act. Unless extended or terminated by the Board, the Company expects the termination date for the repurchase plan will be on May 21, 2017. The Company did not make any repurchases under this program during the year ended December 31, 2016.

Investment Income

Interest on debt investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect 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 expected to be collected or realized. In determining 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 received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.

We receive servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.

We receive a variety of fees from borrowers in the ordinary course of conducting our 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. For the year ended December 31, 2015, other income includes $99,000 of income related to the sale of an intangible asset to a controlled portfolio company.

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

F-107


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

changes in the fair value of investments as a component of the net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

Stock — Based Compensation

The Company accounts for its equity-based compensation plan using the 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 value to compensation expense ratably over the requisite service period or vesting term.

Recently Adopted Accounting Standards

In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” This update requires that debt issuance costs be presented in the statement of assets and liabilities as a direct deduction from the debt liability. The Company adopted this standard with respect to its Notes payable - Securitization Trusts, Notes due 2022 and Notes due 2021.

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 require 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 ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those periods. Early application is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

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 is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

F-108


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Revenue Recognition prior to BDC Conversion

Prior to the BDC Conversion, the Company operated in a number of different segments. Revenues were recognized as services were rendered and are summarized as follows:

Electronic payment processing revenue:  Electronic payment processing and fee income was derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services on a percentage of the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard® and Visa® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks.

Web hosting revenue:  Managed technology solutions revenue was primarily derived from monthly recurring service fees for the use of its web hosting, web design and software support services. Customer set-up fees are billed upon service initiation and are recognized as revenue over the estimated customer relationship period of 2.5 years. Payment for web hosting and related services, excluding cloud plans, is generally received one month to one year in advance. Deferred revenues represent customer payments for web hosting and related services in advance of the reporting period date. Revenue for cloud related services is based on actual consumption used by a cloud customer.

Income from tax credits:  Following an application process, a state will notify a company that it has been certified as a Capco. The state or jurisdiction then allocates an aggregate dollar amount of tax credits to the Capco. However, such amount is neither recognized as income nor otherwise recorded in the financial statements since it has yet to be earned by the Capco. The Capco is entitled to earn tax credits upon satisfying defined investment percentage thresholds within specified time requirements. Newtek has Capcos operating in five states and the District of Columbia. Each statute requires that the Capco invest a threshold percentage of “certified capital” (the funds provided by the insurance company investors) in businesses defined as qualified within the time frames specified. As the Capco meets these requirements, it avoids grounds under the statute for its disqualification for continued participation in the Capco program. Such a disqualification, or “decertification” as a Capco results in a permanent recapture of all or a portion of the allocated tax credits. The proportion of the possible recapture is reduced over time as the Capco remains in general compliance with the program rules and meets the progressively increasing investment benchmarks. As the Capco progresses in its investments in Qualified Businesses and, accordingly, places an increasing proportion of the tax credits beyond recapture, it earns an amount equal to the non-recapturable tax credits and records such amount as income, with a corresponding asset called “credits in lieu of cash” in the balance sheet.

The amount earned and recorded as income is determined by multiplying the total amount of tax credits allocated to the Capco by the percentage of tax credits immune from recapture (the earned income percentage) at that point. To the extent that the investment requirements are met ahead of schedule, and the percentage of non-recapturable tax credits is accelerated, the present value of the tax credit earned is recognized currently and the asset, credits in lieu of cash, is accreted up to the amount of tax credits deliverable to the certified investors. The obligation to deliver tax credits to the certified investors is recorded as notes payable in credits in lieu of cash. On the date the tax credits are utilizable by the certified investors, the Capco decreases credits in lieu of cash with a corresponding decrease to notes payable in credits in lieu of cash.

Sales and Servicing of SBA Loans:  NSBF originates loans to customers under the SBA 7(a) program that generally provides for SBA guarantees of 75% to 90% of each loan, subject to a maximum guarantee amount. This guaranteed portion is generally sold to a third party via an SBA regulated secondary market transaction utilizing SBA Form 1086 for a price equal to the guaranteed loan amount plus a premium. NSBF recognizes premium on loan sales as equal to the cash premium plus the fair value of the initial servicing assets. Revenue is recognized on the trade date of the sale of the guaranteed portion.

F-109


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Upon recognition of each loan sale, the Company retains servicing responsibilities and receives servicing fees of a minimum of 1% of the guaranteed loan portion sold. The Company is required to estimate its adequate servicing compensation in the calculation of its servicing assets. The purchasers of the loans sold have no recourse to the Company for failure of customers to pay amounts contractually due.

Subsequent measurements of each class of servicing assets and liabilities may use either the amortization method or the fair value measurement method. Prior to the BDC Conversion NSBF had chosen to apply the amortization method to its servicing assets, amortizing the asset in proportion to, and over the period of, the estimated future net servicing income on the underlying sold guaranteed portion of the loans and assessing the servicing assets for impairment based on fair value at each reporting date. In the event future prepayments are significant or impairments are incurred and future expected cash flows are inadequate to cover the unamortized servicing assets, accelerated amortization or impairment charges would be recognized. In evaluating and measuring impairment of servicing assets, NSBF stratifies its servicing assets based on year of loan and loan term which are the key risk characteristics of the underlying loan pools. The Company estimates the fair value of the servicing assets by calculating the present value of estimated future net servicing cash flows, using assumptions of prepayments, defaults, servicing costs and discount rates that NSBF believes market participants would use for similar assets. If NSBF determines that the impairment for a stratum is temporary, a valuation allowance is recognized through a charge to current earnings for the amount the amortized balance exceeds the current fair value. If the fair value of the stratum were to later increase, the valuation allowance may be reduced as a recovery. However, if NSBF determines that impairment for a stratum is other than temporary, the value of the servicing assets and any related valuation allowance is written-down. Subsequent to the BDC Conversion, servicing assets are recorded at fair value.

SBA Loan Interest and Fees:  Interest income on loans is recognized as earned. A loan is placed on non-accrual status if it exceeds 90 days past due with respect to principal or interest and, in the opinion of management, interest or principal on the loan is not collectible, or at such earlier time as management determines that the collectability of such principal or interest is unlikely. Such loans are designated as impaired non-accrual loans. All other loans are defined as performing loans. When a loan is designated as impaired non-accrual, the accrual of interest is discontinued, and any accrued but uncollected interest income is reversed and charged against current operations. While a loan is classified as impaired non-accrual and the future collectability of the recorded loan balance is doubtful, collections of interest and principal are generally applied as a reduction to principal outstanding.

The Company passes certain expenditures it incurs to the borrower, such as force placed insurance, insufficient funds fees, or fees it assesses, such as late fees, with respect to managing the loan. These expenditures are recorded when incurred. Due to the uncertainty with respect to collection of these passed through expenditures or assessed fees, any funds received to reimburse the Company are recorded on a cash basis as other income.

Insurance commissions:  Revenues were comprised of commissions earned on premiums paid for insurance policies and are recognized at the time the commission is earned. At that date, the earnings process has been completed and the Company can estimate the impact of policy cancellations for refunds and establish reserves. The reserve for policy cancellations is based on historical cancellation experience adjusted by known circumstances.

F-110


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Other income:  Other income represented revenues derived from operating units that cannot be aggregated with other business segments. In addition, other income represents one time recoveries or gains on investments. Revenue is recorded when there is strong evidence of an agreement, the related fees are fixed, the service or product has been delivered, and the collection of the related receivable is assured.

Receivable fees:  Receivable fees were derived from the funding (purchase) of receivables from finance clients. NBC recognizes the revenue on the date the receivables are purchased at a percentage of face value as agreed to by the client. The Company also has arrangements with certain of its clients whereby it purchases the client’s receivables and charges a fee at a specified rate based on the amount of funds advanced against such receivables. The funds provided are collateralized and the income is recognized as earned.
Late fees:  Late fees were derived from receivables NBC has purchased that have gone over a certain period (usually over 30 days) without payment. The client or the client’s customer is charged a late fee according to the agreement with the client and NBC records the fees as income in the month in which such receivable becomes past due.
Billing fees:  Billing fees were derived from billing-only (non-finance) clients. These fees are recorded when earned, which occurs when the service is rendered.
Other fees:  These fees included annual fees, due diligence fees, termination fees, under minimum fees, and other fees including finance charges, supplies sold to clients, NSF fees, wire fees and administration fees. These fees are charged upon funding, takeovers or liquidation of finance clients. The Company also receives commission revenue from various sources.

Electronic Payment Processing Costs

Electronic payment processing costs consisted principally of costs directly related to the processing of merchant sales volume, including interchange fees, VISA® and MasterCard® dues and assessments, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. Two of the most significant components of electronic processing expenses included interchange and assessment costs, which are set by the credit card associations. Interchange costs are passed on to the entity issuing the credit card used in the transaction and assessment costs are retained by the credit card associations. Interchange and assessment fees are billed primarily as a percent of dollar volume processed and, to a lesser extent, as a per transaction fee. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid under various formulae as contracted. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of operations.

Cash and Cash Equivalents

The Company considers all highly liquid investments 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 or funds and other investment-grade securities. As of December 31, 2016, cash deposits in excess of FDIC deposit insurance and SIPC insurance totaled approximately $10,689,000.

F-111


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Restricted Cash

Restricted cash includes amounts due on Small Business Administration (“SBA”) loan-related remittances to third parties, cash reserves established as part of a voluntary agreement with the SBA, and cash reserves associated with securitization transactions.

Broker Receivable

Broker receivable represents amounts due from third parties for loans which have been traded at period end but have not yet settled.

Out of Period Adjustment

During the three months ended December 31, 2015, the Company identified an error in its accounting for the BDC Conversion. The error related to the accounting for recording debt investments in controlled portfolio companies at fair value. There were no errors in the fair value of any investments at December 31, 2014 however, other assets and additional paid-in capital were overstated. The Company assessed the materiality of the error on its prior quarterly and annual financial statements, assessing materiality both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) No. 99 and SAB No. 108 and concluded that the error was not material to any of its previously issued financial statements. The cumulative adjustment as of December 31, 2015 was a reduction of $800,000 in other assets and an $800,000 reduction of additional paid-in capital. This item was recorded as an out-of-period adjustment at December 31, 2015. There was no impact to the consolidated statements of operations for the year ended December 31, 2015 or the period November 12, 2014 through December 31, 2014.

Allowance for SBA Loan Losses

Prior to the BDC conversion, impaired loans carried on a cost-basis had an allowance for loan losses established by management through provisions for loan losses. The amount of the allowance for loan losses was inherently subjective, as it required making material estimates which may have varied from actual results. Management’s estimates of the allowance for loan losses were particularly affected by the changing composition of the loan portfolio over the last few years as well as other portfolio characteristics, such as industry concentrations and loan collateral. The adequacy of the allowance for loan losses was reviewed by management on a monthly basis at a minimum, and as adjustments became necessary, were reflected in provision for loan losses during the periods in which they became known. Considerations in this evaluation include past and anticipated loss experience, risks inherent in the current portfolio and evaluation of real estate collateral as well as economic conditions. An allowance was established when the discounted cash flows or collateral value or observable market price of the impaired loan was lower than the carrying value of that loan.

In connection with the Company's conversion to a BDC, the allowance for loan losses associated with cost basis loans was released and recorded to the additional paid-in capital component of shareholders' equity as of the conversion date. Subsequent to the BDC Conversion, all SBA loans held for investment are measured at fair value.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Other factors considered by management in determining impairment include payment status and collateral value. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

F-112


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

The Company’s charge-off policy is based on a loan-by-loan review for which the estimated uncollectible portion of nonperforming loans is charged off against the corresponding loan receivable and the allowance for possible loan losses or against the reduction in fair value.

SBA Guaranteed Loans

For guaranteed portions funded, but not yet traded at each measurement date, management recorded SBA guaranteed loans at fair value. SBA guaranteed loans are valued utilizing Level 2 inputs. These inputs include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or have values determined using a pricing model with inputs that are observable in the market. The secondary market for the guaranteed portions is extremely robust with broker dealers acting as primary dealers. NSBF sells regularly into the market and can quickly price its loans held for sale. The Company values the guaranteed portion based on observable market prices for similar assets. SBA guaranteed loans are sold with the servicing rights retained by the Company.

Impairment of Long-Lived Assets

Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. In order to estimate the fair value of a long-lived asset, the Company may engage a third party to assist with the valuation. If there is a material change in economic conditions or other circumstances influencing the estimate of future cash flows or fair value, the Company could be required to recognize impairment charges in the future.

Securitization Activities

NSBF engages in securitization transactions involving the unguaranteed portions of its SBA 7(a) loans. Because the transfer of these assets do not meet the criteria of a sale for accounting purposes, the transactions are treated as secured borrowings. NSBF continues to recognize the assets of the secured borrowing in SBA unguaranteed non-affiliate investments and the associated financing in Note payable - Securitization trust VIE, on the consolidated statements of assets and liabilities.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets deemed to have an indefinite life are not amortized and are subject to impairment tests, at least annually. Other intangible assets with finite lives were amortized over their useful lives ranging from 18 to 66 months.

The Company considers the following to be some examples of indicators that may trigger an impairment review outside its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and intangibles, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the useful life over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on goodwill impairment.

F-113


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

In performing Step 1 of the impairment test the Company estimated the fair value of its reporting units based on a combination of an income approach using a discounted cash flow analysis and market based approach based on comparable public companies. Based on this analysis, it was determined that the carrying value of the NBC reporting unit, including goodwill exceeded its fair value requiring the Company to perform Step 2 of the goodwill impairment test to measure the amount of impairment loss, if any. In performing Step 2 of the goodwill impairment test, the Company compared the implied fair value of the NBC reporting unit's goodwill to the carrying value of goodwill. This test resulted in a goodwill impairment charge of $1,706,000 and a write off of goodwill. This impairment has been reported in total expenses on the consolidated statement of operations during the period ended November 11, 2014.

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.

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 Subchapter M of the Internal Revenue Code of 1986, as amended and will operate in a manner so as to qualify 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 qualify for tax treatment as a RIC, among other things, the Company will be 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 respect to all income distributed to its shareholders.

As a result of the BDC Conversion and the Company's election of RIC status, the Company reversed the balance of its deferred tax asset as of December 31, 2014 through additional paid-in capital. The deferred tax asset was attributable to previously consolidated subsidiaries of the Company that became non-consolidated portfolio companies as part of the Conversion, or deferred tax assets related to NSBF.

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 it’s 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 years ended December 31, 2016 and 2015, no U.S. federal excise taxes were due.

F-114


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

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 $5,983,000 and $857,000 at December 31, 2016 and 2015, respectively and are recorded as deferred tax liabilities on the 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 consolidated statements of operations.

Accounting for Uncertainty in Income Taxes

The ultimate deductibility of positions taken or expected to be taken on tax returns is often uncertain. In order to recognize the benefits associated with a tax position taken (i.e., generally a deduction on a corporation’s tax return), the entity must conclude that the ultimate allowability of the deduction is more likely than not. If the ultimate allowability of the tax position exceeds 50% (i.e., it is more likely than not), the benefit associated with the position is recognized at the largest dollar amount that has more than a 50% likelihood of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and recognized will generally result in (1) an increase in income taxes currently payable or a reduction in an income tax refund receivable or (2) an increase in a deferred tax liability or a decrease in a deferred tax asset, or both (1) and (2). The Company has evaluated its tax positions, for all open tax years and in all major tax jurisdictions, and determined that there is no material impact on our Consolidated Financial Statements.

Segments

Subsequent to the BDC Conversion, 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 of 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 year presentation.

NOTE 3 — FAIR VALUE MEASUREMENTS

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.

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 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 2 Observable 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

F-115


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 — FAIR VALUE MEASUREMENTS  – (continued)

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 3 Unobservable 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 years ended December 31, 2016 and 2015. 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, 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 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 net income before net interest expense, income tax expense, depreciation and amortization (“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.

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

F-116


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 — FAIR VALUE MEASUREMENTS  – (continued)

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.

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.

The following tables present fair value measurements 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 December 31, 2016 and 2015:

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

(1) Included in Other Assets on the Consolidated Statements of Assets and Liabilities

For the year ended December 31, 2016, the change in unrealized appreciation (depreciation) included in the consolidated statement of operations attributable to Level 3 investments still held at December 31, 2016 includes $102,000 in unrealized appreciation on SBA unguaranteed non-affiliate investments, $11,337,000 in unrealized appreciation on controlled investments, $43,000 in unrealized depreciation on non-control/non-affiliate investments and $2,269,000 in unrealized depreciation on servicing assets.

F-117


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 — FAIR VALUE MEASUREMENTS  – (continued)

         
  Fair Value Measurements at December 31, 2015 using:
     Total   Level 1   Level 2   Level 3   Total
Gains and (Losses)
Assets
                                            
Investments in money markets funds   $ 35     $ 35     $     $     $  
Credits in lieu of cash     860             860             (7 ) 
SBA unguaranteed non-affiliate investments     158,355                   158,355       (8,410 ) 
SBA guaranteed non-affiliate investments     2,284             2,284             215  
Controlled investments     104,376                   104,376       12,250  
Other real estate owned(1)     989             989             (221 ) 
Non-control/non-affiliate investments     1,824                   1,824       (24 ) 
Servicing assets     13,042                   13,042       (428 ) 
Total assets   $ 281,765     $ 35     $ 4,133     $ 277,597     $ 3,375  
Liabilities
                                            
Notes payable in credits in lieu of cash   $ 860     $     $ 860     $     $ (3 ) 

(1) Included in Other Assets on the Consolidated Statements of Assets and Liabilities

F-118


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 — FAIR VALUE MEASUREMENTS  – (continued)

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2016 and 2015. 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 December 31, 2016 and 2015.

           
  Fair Value
as of
December 31,
2016
  Valuation
Techniques
  Unobservable
Input
  Weighted
Average
  Range
     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)   $ 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-SBA 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 the fair value of the Company's controlled equity investments as of 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.

F-119


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 — FAIR VALUE MEASUREMENTS  – (continued)

           
  Fair Value
as of
December 31,
2015
  Valuation
Techniques
  Unobservable
Input
  Weighted
Average
  Range
     Minimum   Maximum
Assets:
                                                     
SBA unguaranteed non-affiliate investments – performing loans   $ 152,158       Discounted cash flow       Market yields       5.30 %      5.30 %      5.30 % 
SBA unguaranteed non-affiliate investments – non-performing loans   $ 6,197       Discounted cash flow       Market yields       8.76 %      8.76 %      8.76 % 
Controlled equity investments(A)   $ 100,310       Market comparable companies       EBITDA multiples(B)       6.00x       3.00x       7.00x  
                Market comparable companies       Revenue multiples(B)       1.08x       0.50x       3.00x  
                Discounted cash flow       Weighted average cost
of capital(B)
      12.37 %      11.30 %      15.60 % 
Controlled debt investments   $ 4,066       Discounted cash flow       Market yields       6.26 %      5.75 %      7.50 % 
Non/control/non-affiliate investments   $ 1,824       Liquidation value       Asset value       N/A       N/A       N/A  
Servicing assets   $ 13,042       Discounted cash flow       Market yields       12.03 %      12.03 %      12.03 % 

(A) In determining the fair value of the Company's controlled investments as of December 31, 2015, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 47.1% and 52.9%, respectively, on a weighted average basis.
(B) The Company valued $92,865,000 of investments using a 50/50 weighting of EBITDA and revenue multiples and $1,020,000 of investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $6,425,000 of investments using only discounted cash flows.

F-120


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 — FAIR VALUE MEASUREMENTS  – (continued)

The following table presents the changes in investments and servicing assets measured at fair value using Level 3 inputs for the years ended December 31, 2016 and 2015:

       
  Year ended December 31, 2016
     SBA
unguaranteed
non-affiliate
investments
  Controlled
investments
  Non-control/
non-affiliate
investments
  Servicing
assets
Fair value, beginning of period   $ 158,355     $ 104,376     $ 1,824     $ 13,042  
Net change in unrealized appreciation (depreciation)     18       11,337       (43 )      (2,269 ) 
Realized loss     (925 )                   
SBA unguaranteed non-affiliate investments funded     74,239                    
Foreclosed real estate acquired     (446 )                   
Funding of investments           8,595       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 SBA     2,057                    
Return of investment           (535 )             
Principal payments received on debt investments     (21,827 )      (4,052 )      (751 )       
Additions to servicing assets                       5,473  
Fair value, end of period   $ 211,471     $ 121,302     $ 904     $ 16,246  

       
  Year ended December 31, 2015
     SBA
unguaranteed
non-affiliate
investments
  Controlled
investments
  Non-control/
non-affiliate
investments
  Servicing
assets
Fair value, beginning of period   $ 121,477     $ 77,499     $     $ 9,483  
Net change in unrealized appreciation (depreciation)     1,183       12,250       (24 )      (1,268 ) 
Realized loss     (1,189 )                   
SBA unguaranteed non-affiliate investments funded     57,053                    
Foreclosed real estate acquired     (1,130 )                   
Funding of investments           19,573       2,200        
Purchase of loan from SBA     703                    
Return of investment           (3,746 )             
Principal payments received on debt investments     (19,742 )      (1,200 )      (352 )       
Additions to servicing assets                       4,827  
Fair value, end of period   $ 158,355     $ 104,376     $ 1,824     $ 13,042  

F-121


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 — INVESTMENTS:

Investments, all of which are with portfolio companies in the United States, consisted of the following at December 31, 2016 and 2015:

       
  2016   2015
     Cost   Fair Value   Cost   Fair Value
Money market funds   $ 35     $ 35     $ 35     $ 35  
Non-affiliate debt investments     230,950       223,887       170,668       162,463  
Controlled investments                                    
Equity     35,285       116,919       30,395       100,310  
Debt     5,716       4,383       5,386       4,066  
Total investments   $ 271,986     $ 345,224     $ 206,484     $ 266,874  

The following table shows the Company's portfolio investments by industry at December 31, 2016 and 2015:

       
  December 31, 2016   December 31, 2015
Industry   Cost   Fair Value   Cost   Fair Value
Data Processing, Hosting and Related Services   $ 29,010     $ 107,180     $ 28,506     $ 92,600  
Food Services and Drinking Establishments     21,941       21,702       15,241       14,453  
Amusement, Gambling, and Recreation Industries     18,486       18,995       14,372       14,632  
Securities, Commodity Contracts, and Other Financial Investments and Related Activities     12,909       12,649       8,057       10,031  
Ambulatory Health Care Services     13,068       11,976       8,858       8,214  
Repair and Maintenance     12,066       12,228       9,440       9,337  
Professional, Scientific, and Technical Services     12,240       11,582       7,378       6,856  
Accommodation     9,455       9,849       6,940       6,974  
Specialty Trade Contractors     8,311       7,595       8,492       7,718  
Merchant Wholesalers, Durable Goods     6,211       5,989       6,726       6,299  
Truck Transportation     7,469       6,938       6,142       5,699  
Food and Beverage Stores     5,221       5,194       4,178       4,087  
Heavy and Civil Engineering Construction     4,328       4,209       1,901       1,895  
Fabricated Metal Product Manufacturing     5,922       5,961       3,943       3,577  
Administrative and Support Services     6,379       5,727       4,797       4,566  
Social Assistance     4,903       4,905       3,955       3,845  
Motor Vehicle and Parts Dealers     5,059       5,051       4,289       4,249  
Food Manufacturing     5,596       4,873       5,386       4,630  
Transit and Ground Passenger Transportation     1,836       1,703       881       888  
Clothing and Clothing Accessories Stores     4,221       4,134       2,357       2,125  
Personal and Laundry Services     4,255       4,206       3,231       3,064  
Gasoline Stations     5,938       5,570       4,040       4,008  
Printing and Related Support Activities     3,547       3,183       2,521       2,506  
Insurance Carriers and Related Activities     1,126       3,631       1,288       3,769  
Other     62,454       60,159       43,530       40,817  
Total   $ 271,951     $ 345,189     $ 206,449     $ 266,839  

F-122


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5—TRANSACTIONS WITH AFFILIATED COMPANIES:

An affiliated company is a company in which the Company has an ownership of 5% or more of its voting securities. A controlled affiliate is a company in which the Company owns more than 25% of its voting securities. Transactions related to our investments with controlled affiliates for the year ended December 31, 2016 were as follows:

               
Portfolio Company   Fair Value at
December 31,
2015
  Purchases
(cost)
  Principal
received
(cost)
  Net
realized
gains/
(losses)
  Net
unrealized
gains/
(losses)
  Fair Value at
December 31,
2016
  Interest
and
other
income
  Dividend
income
Controlled Affiliates
                                                                       
Small Business Lending, LLC   $ 5,500     $     $     $     $ (2,200 )    $ 3,300     $     $ 696  
PMTWorks Payroll, LLC     1,020       1,210                   (185 )      2,045       154        
Universal Processing Services of Wisconsin, LLC     52,448                         10,552       63,000             6,800  
CrystalTech Web Hosting,
Inc.
    21,414             (330 )            (975 )      20,109             990  
CDS Business Services, Inc.     3,795       2,420       (2,600 )            (175 )      3,440       143        
Titanium Asset Management LLC     1,824             (1,187 )            (129 )      508       15        
Premier Payments LLC     16,503             (65 )            4,562       21,000             1,735  
Newtek Insurance Agency,
LLC
    2,500                               2,500              
banc-serv Partners, LLC           5,400       (140 )            140       5,400             300  
Secure CyberGateway Services, LLC     1,196             (900 )            (296 )            48       52  
Total Controlled Affiliates   $ 106,200     $ 9,030     $ (5,222 )    $     $ 11,294     $ 121,302     $ 360     $ 10,573  

Prior to July 1, 2016, Titanium Asset Management LLC (“Titanium”) was not a controlled investment. Interest, fees, and dividends credited to income only include the period for which Titanium was a controlled investment. Interest, fees, and dividends attributable to the investment in Titanium that were credited to income prior to July 1, 2016 are included in investment income from non-affiliates investments on the consolidated statements of operations.

NOTE 6 — SERVICING ASSETS:

At December 31, 2016 and 2015, servicing assets are measured at fair value. The Company earns servicing fees from SBA 7(a) loans it originates. Prior to the BDC Conversion, the Company also earned servicing fees from loans originated by third parties. This income is now earned by one of the Company's controlled portfolio companies. Prior to the BDC Conversion, servicing assets were amortized and not recorded at fair value.

The following table summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2016 and 2015:

   
  2016   2015
Fair Value   $ 16,246     $ 13,042  
Discount factor(1)     12.20 %      12.03 % 
Cumulative prepayment rate     18.50 %      15.50 % 
Average cumulative default rate     20.00 %      20.00 % 

(1) Determined based on risk spreads and observable secondary market transactions.

F-123


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 — SERVICING ASSETS:  – (continued)

The following table summarizes servicing fee income earned for the years ended December 31, 2016 and 2015, the period November 12, 2014 through December 31, 2014 and the period January 1, 2014 through November 11, 2014:

       
  December 31,
2016
  December 31,
2015
  November 12,
2014 through
December 31,
2014
  January 1,
2014 through
November 11,
2014
Servicing fees from Newtek originated loans   $ 6,160     $ 4,611     $ 562     $ 3,111  
Servicing fees from third party originated loans(2)                       6,142  
Total servicing fees earned   $ 6,160     $ 4,611     $ 562     $ 9,253  

(2) For servicing functions on loans originated by third party lenders, the Company did not retain any risk on such portfolios and earned servicing fees based on a mutually negotiated fee per loan.

NOTE 7 — ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES:

The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2016 and 2015:

   
  2016   2015
Due to participants and SBA(a)   $ 5,512     $ 3,943  
Due to borrowers     195       184  
Accrued payroll and related expenses     2,528       2,091  
Deferred rent and other lease related liabilities     2,641       78  
Loan processing, servicing and other loan related expenses     1,479       1,331  
Other     1,549       1,318  
Total accounts payable, accrued expenses and other liabilities   $ 13,904     $ 8,945  

(a) Primarily represents loan related remittances received by NSBF, and due to third parties.

NOTE 8 — BORROWINGS:

At December 31, 2016 and 2015, the Company had borrowings comprised of the following:

           
  December 31, 2016   December 31, 2015
Facility   Commitments   Borrowings
Outstanding
  Weighted
Average
Interest
Rate
  Commitments   Borrowings
Outstanding
  Weighted
Average
Interest
Rate
Capital One line of
credit – guaranteed(1)
  $ 50,000     $ 5,100       4.50 %    $ 50,000     $ 29,100       4.25 % 
Capital One line of
credit – unguaranteed(1)
                %                  % 
Notes due 2021     40,250       38,767       7.00 %                  % 
Notes due 2022     8,324       7,853       7.50 %      8,324       7,770       7.50 % 
Note payable – related party     38,000       1,400       7.67 %      38,000       5,647       7.50 % 
Notes payable – Securitization Trusts     120,945       118,122       3.79 %      91,745       89,244       3.29 % 
Total   $ 257,519     $ 171,242       4.75 %    $ 188,069     $ 131,761       3.93 % 

(1) Total combined commitments of the guaranteed and unguaranteed lines of credit are $50,000,000 at December 31, 2016 and 2015.

F-124


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 — BORROWINGS:  – (continued)

Outstanding borrowings under the Notes due 2022, Notes due 2021 and Notes payable — Securitization Trusts consisted of the following:

         
  December 31, 2016   December 31, 2015
     Notes Due
2022
  Notes Due
2021
  Notes Payable-
Securitization
Trusts
  Notes Due
2022
  Notes Payable-
Securitization
Trusts
Principal   $ 8,324     $ 40,250     $ 120,945     $ 8,324     $ 91,745  
Unamortized debt issuance costs     (471 )      (1,483 )      (2,823 )      (554 )      (2,501 ) 
Net carrying amount   $ 7,853     $ 38,767     $ 118,122     $ 7,770     $ 89,244  

As of December 31, 2016 and 2015, the carrying amount of the Company's borrowings under the Capital One lines of credit, Notes payable - related parties and Notes payable — Securitization Trusts, approximates their fair value due to their variable interest rates.

The fair value of the fixed rate Notes due 2022 and Notes due 2021 is based on the closing public share price on the date of measurement. On December 31, 2016, the closing price of the Notes due 2022 was $26.09 per note, or $8,687,000. On December 31, 2015, the closing price of the Notes due 2022 was $26.00 or $8,657,000. On December 31, 2016, the closing price of the Notes due 2021 was $25.53 per note, or $41,103,000. These borrowings are not recorded at fair value on a recurring basis.

Total interest expense for the years ended December 31, 2016 and 2015, the period November 12, 2014 through December 31, 2014 and the period January 1, 2014 to November 11, 2014 was $8,440,000, $6,479,000, $568,000 and $7,323,000, respectively.

7.50% Notes Due 2022

In September 2015, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the First Supplemental Indenture (the “First Supplemental Indenture”) to the Base Indenture between the Company and the Trustee, dated September 23, 2015, relating to the Company’s issuance, offer and sale of $8,200,000 aggregate principal amount of 7.50% Notes due 2022 (the “2022 Notes”). In October 2015, the underwriters issued notification to exercise their over-allotment option for an additional $124,000 in aggregate principal amount of the 2022 Notes. The sale of the 2022 Notes generated net proceeds of approximately $7,747,000.

The Notes will mature on September 30, 2022 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, 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. The Notes bear interest at a rate of 7.50% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on December 31, 2015, and trade on the Nasdaq Global Market under the trading symbol “NEWTZ.”

The 2022 Notes will be the Company’s direct unsecured obligations and will 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 2022 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; (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

The Base Indenture, as supplemented by the First 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) as modified by Section 61(a)(1) of the 1940 Act and to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in

F-125


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 — BORROWINGS:  – (continued)

Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 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, as supplemented by the First Supplemental Indenture, also contains certain reporting requirements, including a requirement that the Company 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 Securities Exchange Act of 1934. The Base Indenture provides for customary events of default. As of December 31, 2016, the Company was in compliance with the terms of the Base Indenture as supplemented by the First Supplemental Indenture.

At December 31, 2016 the 2022 Notes had an outstanding principal balance of $8,324,000. For the year ended December 31, 2016 interest expense and amortization of related deferred financing costs were $624,000 and $83,000, respectively. For the year ended December 31, 2015, interest expense and amortization of related deferred financing costs were $169,000 and $22,900, respectively.

7.00% Notes Due 2021

In April 2016, the Company and the Trustee, entered into the Second Supplemental Indenture (the “Second 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 aggregate principal amount of 7.00% Notes due 2021 (the “2021 Notes”). The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the 2021 Notes generated proceeds of approximately $33,750,000, 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 2021 Notes for an additional $5,066,000 in net proceeds.

The 2021 Notes will mature on March 31, 2021 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 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. The 2021 Notes bear interest at a rate of 7.00% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on June 30, 2016, and trade on the Nasdaq Global Market under the trading symbol “NEWTL.”

The 2021 Notes will be the Company’s direct unsecured obligations and will 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 2022 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; (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.

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) as modified by Section 61(a)(1) of the 1940 Act and to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the Second Supplemental Indenture. The Base Indenture, as supplemented by the Second Supplemental Indenture, also contains certain reporting requirements, including a requirement that the Company 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 Securities Exchange Act of 1934. The Base Indenture provides for customary events of default. As of December 31, 2016, the Company was in compliance with the terms of the Base Indenture as supplemented by the Second Supplemental Indenture.

F-126


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 — BORROWINGS:  – (continued)

At December 31, 2016 the 2021 Notes had an outstanding principal balance of $40,250,000. For the year ended December 31, 2016, interest expense and amortization of related deferred financing costs were $1,941,000 and $240,000, respectively.

Capital One Lines of Credit (Guaranteed and Unguaranteed)

The Company’s wholly owned subsidiary, NSBF, has a $50,000,000 credit facility with Capital One. The facility provides for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans it originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans it originates. The interest rate on the portion of the facility, collateralized by the government guaranteed portion of SBA 7(a) loans, is set at Prime plus 1.00%, 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 at 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. 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 ability to pay dividends to shareholders, as well as the release of the guarantees of our former subsidiaries (now treated as portfolio companies). In addition, the amendment extended the date on which the facility will convert to a term loan from May 16, 2016 to May 16, 2017 and extended the maturity date of the facility to May 16, 2019. NSBF and Capital One entered into a letter of intent to increase the facility to $75,000,000 with a reduction in the interest rates, subject to SBA approval. The facility provides for quarterly covenants including a debt service ratio, EBITDA minimum requirements and a minimum net income covenant. At December 31, 2016, the Company was in full compliance with all applicable loan covenants.

At December 31, 2016 the Capital One lines of credit had an outstanding principal balance of $5,100,000. For the year ended December 31, 2016, interest expense and amortization of related deferred financing costs were $941,000 and $319,000, respectively. For the year ended December 31, 2015, interest expense and amortization of related deferred financing costs were $834,000 and $331,000, respectively. For the period November 12, 2014 through December 31, 2014 interest expense and amortization of related deferred financing costs were $776,000 and $144,000, respectively. For the period January 1, 2014 through November 11, 2014 interest expense and amortization of related deferred financing costs were $141,000 and $8,000, respectively.

Notes Payable — Securitization Trusts

Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses a special purpose entity (the “Trust”) which is considered a VIE. 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 in SBA Unguaranteed Non-Affiliate Investments and reflects the associated financing in Notes Payable — Securitization Trusts.

In December 2014, NSBF completed a securitization which resulted in the transfer of $36,000,000 of unguaranteed portions of SBA loans. The Trust in turn issued securitization notes for the par amount of $31,700,000 against the assets in a private placement. The notes received an “A” rating by S&P, and the final maturity date of the notes is April 2040.

In September 2015, NSBF issued additional unguaranteed SBA 7(a) loan-backed notes as part of an upsizing of the Newtek Small Business Loan Trust, Series 2010-1. Note principal amounts of the original and exchanged notes were approximately $8,771,000 with additional notes which totaled approximately

F-127


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 — BORROWINGS:  – (continued)

$32,028,000 as part of the upsizing. The initial aggregate amount of the senior notes issued by the Trust were approximately $40,800,000 on the closing date. The notes are collateralized by approximately $46,458,000 of SBA 7(a) unguaranteed portions and include a prefunded amount of $14,679,000 to be originated and transferred subsequently to the trust. The notes retained their AA rating under S&P, and the final maturity of the amended notes is February 25, 2041.

In November 2016, NSBF completed a securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans. The Trust in turn issued securitization notes for the par amount of $53,444,000, consisting of $43,632,000 Class A notes and $9,812,000 of Class B notes, against the 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 February 2042.

At December 31, 2016 the Securitization Trusts had an outstanding principal balance of $120,945,000. For the year ended December 31, 2016, interest expense and amortization of related deferred financing costs were $3,191,000 and $650,000, respectively. For the year ended December 31, 2015, interest expense and amortization of related deferred financing costs were $3,180,000 and $630,000, respectively. For the period November 12, 2014 through December 31, 2014 interest expense and amortization of related deferred financing costs were $337,000 and $51,000, respectively. For the period January 1, 2014 through November 11, 2014 interest expense and amortization of related deferred financing costs were $2,252,000 and $441,000, respectively.

At December 31, 2016 and 2015, the assets of the consolidated Trusts totaled $205,060,000 and $152,098,000 respectively. At December 31, 2016 and 2015, the liabilities of the consolidated Trusts totaled $120,945,000 and $91,745,000, respectively.

The Trusts are only permitted to purchase the unguaranteed portion of SBA 7(a) loans, issue asset-backed securities, and make payments on the securities. The Trusts only issued a single series of securities to pay for the unguaranteed portions it acquired from NSBF and will be dissolved when those securities have been paid in full. The primary source for repayment of the debt is the cash flows generated from the unguaranteed portion of SBA 7(a) loans owned by the Trusts; principal on the debt will be paid by cash flow in excess of that needed to pay various fees related to the operation of the Trusts and interest on the debt. The debt has an expected maturity of approximately six years based on the expected performance of the underlying collateral and structure of the debt and a legal maturity of 30 years from the date of issuance. The assets of the Trusts are legally isolated and are not available to pay NSBF’s creditors. However, NSBF continues to retain rights to cash reserves and residual interests in the Trusts and will receive servicing income. For bankruptcy analysis purposes, NSBF sold the unguaranteed portions to the Trusts in a true sale and the Trusts are separate legal entities. The investors and the Trusts have no recourse to any of NSBF’s other assets for failure of debtors to pay when due; however, NSBF’s parent, Newtek, has provided a limited guaranty to the investors in the Trusts in an amount not to exceed 10% of the original issuance amount to be used after all of the assets of the Trusts have been exhausted.

Note Payable — Related Party

In June 2015, the Company entered into an unsecured revolving line of credit agreement with two of its wholly owned controlled portfolio companies, UPSW and NTS. Maximum borrowings under the line of credit are $38,000,000. The outstanding balance bears interest at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 7% or at a rate equal to (y) the greater of the Prime Rate or 3.5%, plus (z) 6%. The interest rate in effect is equal to the interest rate on the term loan between UPSW, NTS, Premier Payments LLC (“Premier”) and Goldman Sachs Bank USA as discussed in Note 9. At December 31, 2016, the line of credit bears interest at 7.67%. The revolving line of credit has a maturity date of June 21, 2019. The outstanding borrowings at December 31, 2016 were $1,400,000. Interest expense for the year ended December 31, 2016 was approximately $260,000.

F-128


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 — BORROWINGS:  – (continued)

Total expected principal repayments on the Company's borrowings for the next five fiscal years and thereafter are as follows:

 
December 31,   Borrowings
2017   $ 5,100  
2018      
2019     1,400  
2020      
2021     40,250  
Thereafter     129,269  
     $ 176,019  

NOTE 9 — 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 2029. Those office space leases which are for more than one year generally contain scheduled rent increases or escalation clauses.

The following summarizes the Company’s obligations and commitments, as of December 31, 2016 for future minimum cash payments required under operating lease and employment agreements:

     
Year   Operating
leases
  Employment
agreements
  Total
2017   $ 2,006     $ 281     $ 2,287  
2018     1,764             1,764  
2019     1,295             1,295  
2020     1,121             1,121  
2021     1,153             1,153  
Thereafter     6,612             6,612  
Total   $ 13,951     $ 281     $ 14,232  

Minimum payments have not been reduced by minimum sublease rentals of $935,000 due in the future under non-cancellable subleases.

Rent expense for the years ended December 31, 2016 and 2015, the period November 12, 2014 through December 31, 2014 and the period January 1, 2014 through November 11, 2014 was $1,765,000, $866,000, $97,000 and $2,264,000, respectively.

Legal Matters

In the ordinary course of 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.

Guarantees

The Company is a guarantor on a bank line of credit held at NBC, a controlled portfolio company. Maximum borrowings under the line of credit are $10,000,000 with a maturity date of February 2018. At December 31, 2016, total principal owed by NBC was $9,847,000. In addition, the Company deposited $750,000 to collateralize the guarantee. On August 27, 2015, NBC entered into Amendment No. 2 (the “Amendment”) to the Loan and Security Agreement, dated February 28, 2011 (as amended through

F-129


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9 — COMMITMENTS AND CONTINGENCIES:  – (continued)

August 27, 2015, including the Amendment, the “Agreement”), by and between Sterling National Bank (“Sterling”) and NBC. The Amendment permits NBC to use a portion of the warehouse line of credit provided by Sterling under the Agreement to fund inventory financing arrangements NBC may provide to its clients. The Amendment also removed certain restrictions placed upon the Company in connection with its guaranty of the credit facility provided under the Agreement. At December 31, 2016, the Company determined that it is not probable that payments would be required to be made under the guarantee.

NBC also entered into an additional Loan and Security Agreement with Sterling on August 27, 2015 (as amended through December 4, 2015) (the “504 Loan Agreement”), pursuant to which Sterling and any future participant lenders agreed to provide NBC another line of credit to fund SBA 504 loans extended by NBC (the “504 Facility”). The maximum amount of the 504 Facility is up to $35,000,000, depending upon syndication. At December 31, 2016, total principal owed by NBC was $2,311,000. The 504 Loan Agreement specifies certain events of default, pursuant to which all outstanding amounts under the 504 Facility could become immediately due and payable. In addition, the Company has guaranteed NBC’s obligations under the 504 Loan Agreement, pursuant to a Guaranty dated as of August 27, 2015. At December 31, 2016, the Company determined that it is not probable that payments would be required to be made under the guarantee.

On June 23, 2015, UPSW and NTS (together, the “Borrowers”), each a controlled portfolio company of the Company, entered into a Credit and Guaranty Agreement (the “Agreement”), dated June 23, 2015, with Goldman Sachs Bank USA (“GS Bank”), as Administrative Agent, Collateral Agent and Lead Arranger, pursuant to which GS Bank agreed to extend the Borrowers a term loan facility up to an aggregate principal amount of $38,000,000 (the “Facility” and each term loan made thereunder, a “Term Loan”). On September 18, 2015, the Agreement was amended to add Premier as a borrower. The Company, Newtek Business Services Holdco 1, Inc., a wholly-owned subsidiary of the Company (“Intermediate Holdings”), and certain subsidiaries of Intermediate Holdings party to the Agreement from time to time, have agreed to guarantee the repayment of the Facility and are parties to the Agreement as “Guarantors” thereunder. At December 31, 2016, $22,000,000 was outstanding under this Facility. At December 31, 2016, the Company determined that it is not probable that payments would be required to be made under the guarantee.

NOTE 10 — EARNINGS PER SHARE:

The following table summarizes the calculation for net increase in net assets per common share for the years ended December 31, 2016 and 2015 and the period November 12, 2014 through December 31, 2014:

     
  December 31,
2016
  December 31,
2015
  November 12,
2014 through
December 31,
2014
Net increase in net assets   $ 27,305     $ 35,736     $ 681  
Weighted average shares outstanding     14,541       10,770       7,620  
Net increase in net assets per common share   $ 1.88     $ 3.32     $ 0.09  

F-130


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 — EARNINGS PER SHARE:  – (continued)

Basic income per share is computed based on the weighted average number of common shares outstanding during the period. The dilutive effect of common share equivalents is included in the calculation of diluted income per share only when the effect of their inclusion would be dilutive:

 
  January 1,
2014 through
November 11,
2014
The calculations of Net Income Per Share were:
        
Numerator:
        
Numerator for basic and diluted EPS – net income available to common shareholders   $ 3,293  
Denominator:
        
Denominator for basic EPS – weighted average shares     7,315  
Denominator for diluted EPS – weighted average shares     7,315  
Net income per share: Basic   $ 0.45  
Net income per share: Diluted   $ 0.45  
Anti-dilutive shares excluded from above:
        
Contingently issuable shares     17  

NOTE 11 — PUBLIC OFFERINGS:

The following table summarizes the total shares issued and proceeds received net of underwriting and offering costs in public offerings of the Company’s common stock for the years ended December 31, 2016, 2015, and 2014:

     
  Years ended December 31,
     2016   2015   2014
Shares issued           2,300,000       2,530,000  
Offering price per share   $     $ 16.50     $ 12.50  
Proceeds net of underwriting discounts and offering costs   $     $ 35,290     $ 27,883  

On November 18, 2014 the Company priced a public offering of 2,200,000 shares of its common stock at a public offering price of $12.50 per share. The Company also sold an additional 330,000 shares of its common stock at a public offering price of $12.50 per share pursuant to the underwriter's full exercise of the over-allotment option.

On October 15, 2015 the Company priced a public offering of 2,000,000 shares of its common stock at a public offering price of $16.50 per share. The Company also sold an additional 300,000 shares of its common stock at a public offering price of $16.50 per share pursuant to the underwriter's full exercise of the over-allotment option.

F-131


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 — DIVIDENDS AND DISTRIBUTIONS:

The Company's dividends and distributions are recorded on the declaration date. The following table summarizes the Company's dividend declarations and distributions during the years ended December 31, 2016 and 2015. There were no dividend declarations or distributions during any prior years.

           
Date Declared   Record Date   Payment Date   Amount
Per Share
  Cash
Distribution
  DRIP
Shares
Issued
  DRIP
Shares
Value
December 31, 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  
November 17, 2016     December 15, 2016       December 30, 2016     $ 0.40     $ 5,706       6     $ 91  
December 31, 2015
                                                     
March 19, 2015     March 30, 2015       April 13, 2015     $ 0.39     $ 3,985           $  
June 15, 2015     June 29, 2015       July 15, 2015     $ 0.47     $ 4,715       5     $ 87  
October 1, 2015     October 22, 2015       November 3, 2015     $ 0.50     $ 6,123       12     $ 201  
October 1, 2015(1)     November 18, 2015       December 31, 2015     $ 2.69     $ 9,195           $  
December 16, 2015     January 7, 2016       January 19, 2016     $ 0.40     $ 5,659       13     $ 143  

During the year ended December 31, 2016, an additional 6,100 shares valued at $93,000 were issued related to dividends from unvested restricted stock awards.

Special Dividend (1)

On October 1, 2015, the Company declared a one-time special dividend of approximately $34,055,000 payable on December 31, 2015 to shareholders of record as of November 18, 2015. This special dividend was declared as a result of the Company’s intention to elect RIC status for tax year 2015, as it was required to distribute 100% of its accumulated earnings and profits through December 31, 2014 in order to qualify as a RIC. The special dividend amount of approximately $34,055,000 was computed based on an earnings and profits analysis completed through December 31, 2014.

The dividend was paid in cash and shares of the Company's common stock at the election of each shareholder. The total amount of cash distributed to all shareholders was limited to 27% or $9,195,000 of the total dividend. The remainder of the dividend was paid in the form of shares of the Company's common stock. As a result approximately 1,844,000 shares of the Company's common shares were issued.

NOTE 13 — BENEFIT PLANS:

Defined 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 eligible employees and qualifies under Section 401(k) of the Internal Revenue 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. For the years ended December 31, 2016, 2015 and 2014, the Company matched 50% of the first 2% of employee contributions, resulting in $63,000, $177,000 and $130,000 in expense, respectively.

F-132


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 — INCOME TAXES:

As a RIC, the Company must distribute substantially all of its respective net taxable income each tax year as dividends to its shareholders. Accordingly, no provision for federal income tax has been made in the financial statements for the years ended December 31, 2016 and 2015.

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-tax differences, including the offset of net operating losses against net short-term gains and nondeductible meals and entertainment, have no impact on net assets.

The following differences were reclassified for tax purposes for the years ended December 31, 2016 and 2015:

   
  December 31,
2016
  December 31,
2015
Increase (decrease) in additional paid-in capital   $ (649 )    $ 195  
Increase in undistributed net investment income     12,915       10,622  
Decrease in net realized gains on investments     (12,266 )      (10,817 ) 

Taxable income generally differs from net increase (decrease) in net assets for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses and generally excludes unrealized appreciation (depreciation) on investments as investment gains and losses are not included in taxable income until they are realized.

The following table reconciles net increase in net assets to taxable income for the years ended December 31, 2016 and 2015:

   
  December 31,
2016
  December 31,
2015
Net increase in net assets   $ 27,305     $ 35,736  
Net change in unrealized depreciation on investments     (12,343 )      (10,187 ) 
Net change in deferred tax liabilities     5,128       857  
GAAP versus tax basis consolidation of subsidiaries     1,536       (4,115 ) 
Other deductions/losses for tax, not book     (17 )      (307 ) 
Other differences     1,871       92  
Taxable income before deductions for distributions   $ 23,480     $ 22,076  

The tax character of distributions paid during the years ended December 31, 2016 and 2015 was as follows:

   
  December 31,
2016
  December 31,
2015
Ordinary income   $ 18,774     $ 15,043  
Long-term capital gains     3,390       67  
Return of capital            

The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The Company’s fourth quarter dividend which was declared in December 2015, but had a record date in 2016, is included in the 2016 dividends reportable to shareholders. Approximately 34.8% of the Company’s ordinary income was from qualified dividends. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV.

F-133


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 — INCOME TAXES:  – (continued)

The tax basis components of distributable earnings/(accumulated losses) and reconciliation to accumulated earnings/(deficit) on a book basis for the years ended December 31, 2016 and 2015 were as follows:

   
  December 31,
2016
  December 31,
2015
Undistributed ordinary income – tax basis   $ 2,377     $ 6,781  
Undistributed net realized gains – tax basis           184  
Net change in unrealized appreciation on investments     13,025       8,062  
GAAP versus tax basis consolidation of subsidiaries     2,579       4,115  
Other temporary differences     2,348       1,288  
Dividends payable           (5,802 ) 
Total accumulated earnings – book basis   $ 20,329     $ 14,628  

The differences between the components of distributable earnings on a tax basis and the amounts reflected in the consolidated statements of changes in net assets are primarily due to temporary book-tax differences that will reverse in a subsequent period.

Income Taxes Prior to RIC Election

The Company’s tax provision is based on the Company’s results for the full year on a consolidated tax basis. Although the company converted to a BDC on November 11, 2014, it was not be eligible to elect RIC status until the year ended December 31, 2015. The Company’s deferred tax asset at December 31, 2015, was closed out to additional paid-in capital on January 1, 2015.

Provision for income taxes for the year ended December 31, 2014 is as follows:

 
  December 31,
2014
Current:
        
Federal   $ 2,742  
State and local     1,043  
       3,785  
Deferred:
        
Federal     296  
State and local     48  
       344  
Total provision for income taxes   $ 4,129  

A reconciliation of income taxes computed at the U.S. federal statutory income tax rate to the provision for income taxes for the year ended December 31, 2014 is as follows:

 
  2014
Provision
Provision for income taxes at U.S. federal statutory rate of 35%   $ 2,655  
State and local taxes, net of federal benefit     709  
Permanent differences     (47 ) 
Goodwill impairment     597  
Deferred tax asset valuation allowance increase     200  
Other     15  
Total provision for income taxes   $ 4,129  

F-134


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 15 — FINANCIAL HIGHLIGHTS:

The financial highlights for the Company are as follows:

     
Per share data(2)   Year ended
December 31,
2016
  Year ended
December 31,
2015
  November 12,
2014 through
December 31,
2014
Net asset value at beginning of period   $ 14.06     $ 16.31     $ 13.49  
Issuance of common stock           2.43       2.73  
Dividends from capital gains     (1.53 )      (1.76 )       
Special dividend           (2.69 )       
Net investment loss     (0.64 )      (0.57 )      (0.33 ) 
Net realized gain on investments     2.17       3.14       0.08  
Net unrealized appreciation on investments     0.85       0.95       0.36  
Change in provision for deferred taxes     (0.35 )      (0.06 )       
Stock compensation     0.04              
Net unrealized depreciation on servicing assets     (0.16 )      (0.12 )      (0.02 ) 
Exponential of New York LLC distributions to members           (0.25 )       
Consolidation of Exponential Business
Development Co., Inc.
    (0.03 )             
Reversal of deferred tax asset           (0.19 )       
Out of period adjustment related to BDC
Conversion
          (0.06 )       
Impact of restricted stock awards     (0.11 )             
Dilutive effect of special dividend           (3.07 )       
Net asset value at end of period   $ 14.30     $ 14.06     $ 16.31  
Per share market value at end of period   $ 15.90     $ 14.32     $ 14.76  
Total return based on market value(3)     24.51 %      24.46 %      13.10 % 
Total return based on average net asset value(4)     12.59 %      13.52 %      20.87 % 
Shares outstanding at end of period     14,624       14,509       10,206  
Ratios/Supplemental Data:
                          
Ratio of expenses to average net assets     19.48 %      17.42 %      20.46 % 
Ratio of net investment loss to average net assets     (4.48 )%      (3.34 )%      (11.99 )% 
Net assets at end of period   $ 209,094     $ 203,949     $ 166,418  
Average debt outstanding   $ 151,502     $ 128,680     $ 108,483  
Average debt outstanding per share   $ 10.36     $ 8.87     $ 10.63  
Asset coverage ratio     222 %      249 %      223 % 
Portfolio turnover     109.64 %      103.50 %      5.08 % 

(1) Years prior to becoming a business development company are not presented in the financial highlights as the information would not be meaningful.
(2) 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.
(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 shareholders during the period, divided by the beginning net asset value.

F-135


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16 — RELATED PARTY TRANSACTIONS:

Investment in Premier Payments LLC

On July 23, 2015, the Company invested in 100% of the membership interests of Premier which was owned 100% by Jeffrey Rubin, former President of Newtek. The total investment was approximately $16,483,000, of which $14,011,000 was paid in cash and $2,472,000 was paid in newly issued restricted shares of Newtek common stock. A total of 130,959 shares were issued on the date of investment which may not be sold or transferred for six months from the acquisition date. The Company’s Board, including a majority of independent directors, approved the investment.

Consulting Agreements

In July 2015, the Company entered into a consulting agreement (the “Agreement”), with Jeffrey Rubin, former President of Newtek and former CEO of Premier (a controlled portfolio company acquired in July 2015). The Agreement retained Jeffrey Rubin to perform business development consulting services. The Agreement entitled Jeffrey Rubin to annual compensation of $200,000 paid monthly. For the year ended December 31, 2015, the Company incurred approximately $83,000 in consulting fees related to the Agreement. The Agreement was terminated in December 2015 and no additional payments are required to be made. On January 1, 2016, Jeffrey Rubin entered into an independent sale agent agreement with Premier.

In September 2016, the Company entered into an advisory services agreement (the “AK Agreement”) with AK Capital, LLC (“AK Capital”). The Company's Chief Executive Officer is a director of AK Capital. AK Capital provides consulting and advisory services to the Company in connection with the sale and/or securitization of participations in SBA guaranteed and unguaranteed SBA 7(a) loans. The AK agreement contains total fees of $10,000, to be paid monthly over one year. During the year ended December 31, 2016, the Company incurred $3,000 in fees from AK Capital.

Investment in PMTWorks Payroll, LLC

In November 2015, the Company exercised a warrant for nominal consideration to acquire an additional 10% membership interest in PMTWorks Payroll, LLC (“PMT”). The additional 10% interest was obtained from the founder and current board member of PMT, a controlled portfolio company.

Note Payable — Related Party

In June 2015, the Company entered into an unsecured revolving line of credit agreement with UPSW and NTS. The maximum borrowings under the line of credit are $38,000,000. The outstanding balance bears interest at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 7% or at a rate equal to (y) the greater of the Prime Rate or 3.5%, plus (z) 6%. Refer to Note 8 — “Borrowings” for additional discussion.

Lake Success, New York Offices

Beginning in April 2016, the Company began sub-leasing portions of its office space in Lake Success, New York to certain portfolio companies. Amounts charged for the year ended December 31, 2016 were as follows:

 
Portfolio Company   December 31,
2016
Small Business Lending, LLC   $ 104  
CDS Business Services, Inc.     80  
PMTWorks Payroll, LLC     30  
Universal Processing Services of Wisconsin, LLC     32  
Newtek Insurance Agency, LLC     46  
Titanium Asset Management LLC     4  
Premier Payments LLC     57  
Total   $ 353  

F-136


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16 — RELATED PARTY TRANSACTIONS:  – (continued)

Managerial Assistance Fees from Controlled Investments

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 charged at an arms length basis. The table below summarizes amounts charged to each controlled affiliate for the years ended December 31, 2016 and 2015. The amounts are recorded as a credit to salaries and benefits in the consolidated statements of operations. No amounts were charged in 2014.

   
Portfolio Company   December 31,
2016
  December 31,
2015
Universal Processing Services of Wisconsin, LLC   $ 468     $ 590  
CrystalTech Web Hosting, Inc.     654       528  
PMTWorks Payroll, LLC     96       149  
Newtek Insurance Agency, LLC     235       241  
Summit Systems and Designs, LLC     26       30  
Secure CyberGateway Services, LLC     1       45  
Premier Payments LLC     192       45  
banc-serv Partners, LLC     110        
Small Business Lending, LLC     525       176  
Total   $ 2,307     $ 1,804  

Sale of Intangible Asset

In December 2015, the Company sold a portfolio of health-related insurance policies to Newtek Insurance Agency, LLC (“NIA”) for $407,000. The carrying value of the portfolio at the time of sale was $308,000 which resulted in gain on sale of $99,000 which is included in other income from controlled investments on the consolidated statements of operations. The purchase price was calculated based on one times the trailing twelve month gross commissions earned from the remaining active policies.

Other Transactions with Related Parties

The Company incurs expenses and earns revenue by providing managed technology services, loan processing, closing, and payroll processing to NTS, PMT, and various related parties.

   
  December 31,
2016
  December 31,
2015
Managed technology services   $ 969     $ 599  
Loan processing and closing     59       255  
Payroll processing     35       22  
Consulting fees and other revenue           51  

A member of the Company’s Board and audit committee chairman receives a pension from CohnReznick LLP and capital payouts from his partnership interests. CohnReznick LLP performs tax services for the Company.

The spouse of the Chief Accounting Officer of the Company is the Controller of certain of the Company's controlled portfolio companies and is paid an annual salary in excess of $125,000.

The brother and nephew of the Chief Executive Officer of the Company are employed by certain of the Company's controlled portfolio companies and earn annual salaries less than $125,000.

F-137


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16 — RELATED PARTY TRANSACTIONS:  – (continued)

Prior to the BDC Conversion, and during the period January 1, 2014 through November 11, 2014, the Company provided merchant processing for a company controlled by the father-in-law of a major shareholder and former President of the Company, in the approximate amount of $15,000.

Prior to the BDC Conversion, the Company paid gross residuals to an independent sales organization (“ISO”) controlled by a major shareholder of the Company. The ISO earned gross residuals from Newtek, and in turn paid commissions to its sales representatives as well as other operating expenses. Gross residuals paid by the Company to the ISO for the period January 1, 2014 through November 11, 2014 were approximately $3,241,000.

As a result of the BDC Conversion, subsidiaries which were consolidated in prior years are now reflected as investments in controlled portfolio companies, recorded at fair value. As a result, transactions and balances with these companies are no longer eliminated in consolidation. As of December 31, 2016, the Company has $3,748,000 due from related parties and $1,227,000 due to related parties. At December 31, 2015, the Company had $3,056,000 due from related parties and $256,000 due to related parties.

NOTE 17 — STOCK OPTIONS AND RESTRICTED STOCK GRANTED TO EMPLOYEES:

Stock Plan

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 measured the grant date fair value based upon the market price of its common 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 Company's Board approves the issuance of shares of restricted stock to employees and directors pursuant to the Company’s 2015 Equity Incentive Plan (the “Equity Incentive Plan”). These shares generally vest over a one or two year period from the grant date. 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 and the remaining shares of restricted stock available for issuance as of December 31, 2016.

 
Restricted Stock authorized under the plan(1)     1,462,394  
Less net restricted stock granted during:
        
Year ended December 31, 2016     (120,933 ) 
Restricted stock available for issuance as of December 31, 2016     1,341,461  

(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 year ended December 31, 2016 and the period January 1, 2014 through November 11, 2014, the Company recognized total stock-based compensation expense of $577,000 and $865,000, respectively. No stock-based compensation expense was incurred during the year ended December 31, 2015 and the period November 12, 2014 through December 31, 2014.

As of December 31, 2016, there was $1,081,000 of total unrecognized compensation expense related to unvested restricted shares. This compensation expense is expected to be recognized over a remaining weighted-average period of approximately 0.87 years as of December 31, 2016.

F-138


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 18 — SEGMENT REPORTING:

Prior to the BDC Conversion, operating segments were organized internally primarily by the type of services provided. The Company aggregated similar operating segments into six reportable segments: Electronic payment processing, Managed technology solutions, Small business finance, All other, Corporate and Capcos.

The Electronic payment processing segment was a processor of credit card transactions, as well as a marketer of credit card and check approval services to the small- and medium-sized business market. Expenses included direct costs (included in a separate line captioned electronic payment processing costs), professional fees, salaries and benefits, and other general and administrative costs, all of which are included in the respective caption on the consolidated statements of operations.

The Small business finance segment consisted of SBL, a lender service provider for third-parties that primarily services government guaranteed SBA loans and non-SBA loans; Texas Whitestone Group which managed the Company’s Texas Capco; NSBF, a nationally licensed SBA lender that originates, sells and services loans to qualifying small businesses; and NBC which provides accounts receivable financing, billing and accounts receivable maintenance services to businesses. NSBF generates revenues from sales of loans, servicing income and interest income earned on the loans themselves. The lender generates expenses for interest, professional fees, salaries and benefits, depreciation and amortization, and provision for loan losses, all of which are included in the respective caption on the consolidated statements of operations. NSBF also has expenses such as loan recovery expenses, loan processing costs, and other expenses that are all included in the other general and administrative costs caption on the consolidated statements of operations.

The Managed technology solutions segment consisted of NTS which was acquired in July 2004. NTS’ revenues were derived primarily from web hosting services and consisted of web hosting and set up fees. NTS generated expenses such as professional fees, payroll and benefits, and depreciation and amortization, which are included in the respective caption on the accompanying consolidated statements of operations, as well as licenses and fees, rent, and general office expenses, all of which are included in other general and administrative costs in the respective caption on the consolidated statements of operations.

The All other segment includes revenues and expenses primarily from qualified businesses that received investments made through the Company’s Capcos which cannot be aggregated with other operating segments. The three largest entities in the segment were NIA, an insurance sales operation, PMT, a provider of payroll processing services and Business Connect, LLC, a provider of sales and processing services.

Corporate activities represented revenue and expenses not allocated to other segments. Revenue included interest income and management fees earned from Capcos (and included in expenses in the Capco segment). Expenses primarily included corporate operations related to broad-based sales and marketing, legal, finance, information technology, corporate development and additional costs associated with administering the Capcos.

The Capco segment, which consisted of the twelve Capcos, generated non-cash income from tax credits, interest income and gains from investments in qualified businesses which are included in other income. Expenses primarily included non-cash interest and insurance expense, management fees paid to Newtek (and included in Corporate activities revenues), legal, audit fees and losses from investments in qualified businesses.

Management considered the following characteristics when making its determination of its operating and reportable segments:

the nature of the product and services;
the type or class of customer for their products and services;
the methods used to distribute their products or provide their services; and
the nature of the regulatory environment (for example, banking, insurance, or public utilities).

F-139


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 18 — SEGMENT REPORTING:  – (continued)

The accounting policies of the segments were the same as those described in the summary of significant accounting policies.

The Company no longer has six reportable segments after November 11, 2014 as a result of the BDC Conversion. The segment information presented below represents results up until the date of conversion. For the years ended December 31, 2016 and 2015 and the period from November 12, 2014 through December 31, 2014 the Company had one reportable segment.

The following table presents the Company’s segment information for the period January 1, 2014 through November 11, 2014:

 
  January 1,
2014 through
November 11,
2014
Third Party Revenue
        
Electronic payment processing   $ 79,529  
Small business finance     36,426  
Managed technology solutions     13,997  
All other     2,277  
Corporate activities     774  
Capco     364  
Total reportable segments     133,367  
Eliminations     (1,520 ) 
Consolidated Total   $ 131,847  
Inter Segment Revenue
        
Electronic payment processing   $ 3,708  
Small business finance     454  
Managed technology solutions     528  
All other     1,435  
Corporate activities     3,406  
Capco     692  
Total reportable segments     10,223  
Eliminations     (10,223 ) 
Consolidated Total   $  
Income (loss) before income taxes
        
Electronic payment processing   $ 7,366  
Small business finance     9,090  
Managed technology solutions     2,818  
All other     (1,153 ) 
Corporate activities     (9,879 ) 
Capco     (778 ) 
Total reportable segments     7,464  
Eliminations     (321 ) 
Consolidated Total   $ 7,143  

F-140


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 18 — SEGMENT REPORTING:  – (continued)

 
  January 1,
2014 through
November 11,
2014
Depreciation and Amortization
        
Electronic payment processing   $ 226  
Small business finance     1,440  
Managed technology solutions     1,165  
All other     180  
Corporate activities     129  
Capco      
Consolidated Total   $ 3,140  
Interest (Income) Expense, net
        
Electronic payment processing   $ (1 ) 
Small business finance     (712 ) 
Managed technology solutions     41  
All other      
Corporate activities     2,264  
Capco     (234 ) 
Total reportable segments     1,358  
Eliminations     302  
Consolidated Total   $ 1,660  

NOTE 19 — UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES:

In accordance with the SEC’s Regulation S-X and GAAP, we are not permitted to consolidate any subsidiary or other entity that is not an investment company, including those in which we have a controlling interest. We had one unconsolidated subsidiary as of December 31, 2016 and for the year ended December 31, 2016 that met at least one of the significance conditions under Rule 1-02(w) of Regulation S-X for which we are required, pursuant to Rule 3-09 of Regulation S-X, to attach separate financial statements as exhibits to the Form 10-K. Accordingly, the financial statements of UPSW for the years ended December 31, 2016 and 2015 and the period November 12, 2014 through December 31, 2014 have been attached as exhibits.

F-141


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 20 — SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):

The following table sets forth certain unaudited consolidated quarterly statement of operations data from the eight quarters ended December 31, 2016. This information is unaudited, but in the opinion of management, it has been prepared substantially on the same basis as the audited consolidated financial statements appearing elsewhere in this report, and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below. The consolidated quarterly data should be read in conjunction with the current audited consolidated statements and notes thereto. The total of the quarterly EPS data may not equal to the full year results.

       
  Three Months Ended
2016   March 31   June 30   September 30   December 31
Total investment income   $ 6,794     $ 7,223     $ 7,851     $ 9,097  
Net investment loss   $ (1,380 )    $ (4,081 )    $ (2,125 )    $ (1,674 ) 
Net gain on investments   $ 6,984     $ 9,453     $ 12,165     $ 7,963  
Net increase in net assets   $ 5,604     $ 5,372     $ 10,040     $ 6,289  
Net increase in net assets per share   $ 0.39     $ 0.37     $ 0.69     $ 0.43  
Net asset value per share at period end   $ 14.10     $ 14.11     $ 14.26     $ 14.30  

       
  Three Months Ended
2015   March 31   June 30   September 30   December 31
Total investment income   $ 4,750     $ 5,606     $ 7,038     $ 8,676  
Net investment (loss) income   $ (2,476 )    $ (2,295 )    $ (1,491 )    $ 77  
Net gain on investments   $ 12,479     $ 7,171     $ 6,240     $ 16,031  
Net increase in net assets   $ 10,003     $ 4,876     $ 4,749     $ 16,108  
Net increase in net assets per share   $ 0.98     $ 0.48     $ 0.46     $ 1.31  
Net asset value per share at period end   $ 16.61     $ 16.62     $ 16.88     $ 14.06  

NOTE 21 — SUBSEQUENT EVENTS:

Public Offering

On January 25, 2017, the Company completed a public offering of 2,250,000 shares of its common stock at a public offering price of $15.25 per share. The Company also sold an additional 337,500 shares of its common stock at a public offering price of $15.25 per share pursuant to the underwriter's full exercise of the over-allotment option. Proceeds, net of offering costs and expenses were $37,326,000.

Capital One Lines of Credit

NSBF signed a letter of intent to increase its existing revolving credit facility through Capital One by $25,000,000 to $75,000,000 as well as reduce the borrowing rate. The upsize of the credit facility and rate reduction are subject to final documentation and approval from the SBA.

Quarterly Dividend

On March 6, 2017 the Company declared a quarterly cash dividend of $0.36 per share payable on March 31, 2017 to shareholders of record as of March 20, 2017. The dividend will be paid in cash or shares of the Company's common stock through participation in the Company's dividend reinvestment plan, at the election of shareholders.

F-142


 
 

TABLE OF CONTENTS

Newtek Business Services Corp. and Subsidiaries
 
Schedule of Investments In and Advances to Affiliates
December 31, 2016

         
Portfolio Company/Type of Investment(1)   Amount of
Interest, Fees
or Dividends
Credited in
Income
  Fair Value at
December 31,
2015
  Gross
Additions(2)
  Gross
Reductions(3)
  Fair Value at
December 31,
2016
Controlled Investments
                                            
Advanced Cyber Security Systems, LLC
                                            
50% Membership Interest   $     $     $     $     $  
Term loan                              
Automated Merchant Services, Inc.
                                            
100% Common Stock                              
CDS Business Services, Inc.
                                            
100% Common Stock           925             (175 )      750  
Line of credit     143       2,870       2,420       (2,600 )      2,690  
CrystalTech Web Hosting, Inc.
                                            
100% Common Stock     990       21,414             (1,305 )      20,109  
Fortress Data Management, LLC
                                            
100% Membership Interest                              
Newtek Insurance Agency, LLC
                                            
100% Membership Interest           2,500                   2,500  
PMTWorks Payroll, LLC
                                            
100% Membership Interest           1,020       25       (185 )      860  
Term Loan     154             1,185             1,185  
Secure CyberGateway Services, LLC
                                            
66.7% Membership Interest     52                          
Term Loan     48       1,196             (1,196 )       
Premier Payments LLC
                                            
100% Membership Interest     1,735       16,503       4,562       (65 )      21,000  
Small Business Lending, LLC
                                            
100% Membership Interest     696       5,500             (2,200 )      3,300  
banc-serv Partners, LLC
                                            
100% Membership Interest     300             5,540       (140 )      5,400  
Titanium Asset Management, LLC(4)
                                            
100% Membership Interest                              
Term loans     15       1,824             (1,316 )      508  
Summit Systems and Designs, LLC
                                            
100% Membership Interest                              
Universal Processing Services of Wisconsin, LLC
                                            
100% Membership Interest     6,800       52,448       10,552             63,000  
Total Controlled Investments   $ 10,933     $ 106,200     $ 24,284     $ (9,182 )    $ 121,302  

(1) The principal amount and ownership detail as shown in the Company's Consolidated Schedule of Investments.
(2) 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.

F-143


 
 

TABLE OF CONTENTS

(3) 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.
(4) Prior to July 1, 2016, Titanium was not a controlled investment. Interest, fees, and dividends credited to income only include the period for which Titanium was a controlled investment.

F-144


 
 

TABLE OF CONTENTS

  
  

Universal Processing Services of Wisconsin, LLC
(A Limited Liability Company)

Financial Report
and Independent Auditor’s Report
Year Ended December 31, 2016

F-145


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Index
Year Ended December 31, 2016

F-146


 
 

TABLE OF CONTENTS

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Stockholders
of Universal Processing Services of Wisconsin, LLC

We have audited the accompanying financial statements of Universal Processing Services of Wisconsin, LLC (the “Company”), which comprise the balance sheet as of December 31, 2016, and the related statements of income, member’s deficit, and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Universal Processing Services of Wisconsin, LLC as of December 31, 2016, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

/s/ UHY LLP
New York, New York
February 22, 2017

F-147


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Balance Sheet
December 31, 2016

 
Assets
        
Current Assets:
        
Cash   $ 7,898,628  
Accounts receivable     3,115,054  
Prepaid expenses and other current assets     263,066  
Inventory     245,500  
Total current assets     11,522,248  
Fixed assets, net     402,040  
Customer merchant accounts, net     1,191,600  
Restricted cash     587,707  
Due from related parties     317,103  
Notes receivable-related party     500,000  
Goodwill     1,908,495  
Total assets   $ 16,429,193  
Liabilities and Member's Deficit
        
Liabilities:
        
Current Liabilities:
        
Accounts payable and accrued expenses   $ 3,484,204  
Residuals payable     868,087  
Due to related parties     464,045  
Chargeback reserves     802,722  
Total current liabilities     5,619,058  
Bank note payable, net of deferred financing costs     16,431,529  
Total liabilities     22,050,587  
Commitments and contingencies (Note 9)
        
Member's deficit     (5,621,394 ) 
Total liabilities and member's deficit   $ 16,429,193  

 
 
See notes to financial statements.

F-148


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Statement of Income
Year Ended December 31, 2016

 
Revenue:
        
Electronic payment processing   $ 103,885,710  
Expenses:
        
Electronic payment processing costs     88,013,827  
Salaries and benefits     4,677,273  
Professional fees     783,846  
Depreciation and amortization     799,006  
Other general and administrative costs     1,221,448  
Total expenses     95,495,400  
Income from operations     8,390,310  
Interest expense, net     (1,588,970 ) 
Interest income-related party     183,050  
Net income   $ 6,984,390  

 
 
See notes to financial statements.

F-149


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Statement of Changes in Member’s Deficit
Year Ended December 31, 2016

 
  Member's Deficit
Balance, January 1, 2016   $ (3,495,974 ) 
Net income     6,984,390  
Member distributions     (9,109,810 ) 
Balance, December 31, 2016   $ (5,621,394 ) 

 
 
See notes to financial statements.

F-150


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Statement of Cash Flows
Year Ended December 31, 2016

 
Cash flows from operating activities:
        
Net income   $ 6,984,390  
Adjustments to reconcile net income to net cash provided by operating activities:
        
Depreciation and amortization     799,006  
Amortization of deferred financing costs     257,232  
Changes in operating assets and liabilities:
        
Restricted cash     (94,992 ) 
Accounts receivable     (569,643 ) 
Prepaid expenses and other current assets     (179,718 ) 
Inventory     41,975  
Accounts payable, accrued expenses and other current liabilities     1,508,596  
Due to/from related parties     260,352  
Net cash provided by operating activities     9,007,198  
Cash flows from investing activities:
        
Purchase of customer merchant accounts     (152,103 ) 
Principal payments received on related party note     5,146,749  
Purchase of fixed assets     (203,472 ) 
Net cash provided by investing activities     4,791,174  
Cash flows used in financing activities:
        
Distributions to member     (9,109,810 ) 
Net increase in cash     4,688,562  
Cash, beginning of year     3,210,066  
Cash, end of year   $ 7,898,628  
Supplemental disclosure of cash flow information
        
Interest paid   $ 1,236,274  

 
 
See notes to financial statements.

F-151


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Notes to Financial Statements
Year Ended December 31, 2016

1. Organization, Description of Business, and Basis of Presentation

Universal Processing Services of Wisconsin, LLC (“UPS-WI”), was organized as a limited liability company (“LLC”) under the laws of the State of Wisconsin and is a wholly-owned subsidiary of Newtek Business Services Holdco 1, Inc. (“Holdco”). As a limited liability company, the liability of Holdco is limited to its capital account.

UPS-WI and its formerly wholly-owned subsidiary, Solar Processing Services, LLC (“Solar”) are collectively hereinafter referred to as the “Company”. In June 2016, Solar merged into UPS-WI. The Company markets credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other non-cash forms of payment.

2. Significant Accounting Policies

Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates, by their nature, are based on judgment and available information. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the reserve for chargeback losses.

Recently Adopted Accounting Standards

In April 2015, the Financial Accounting Standards Board issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” This update requires that debt issuance costs be presented in the balance sheet as a direct deduction from the debt liability. The Company adopted this standard with respect to its Bank note payable.

Financial Instruments

The Company’s financial instruments include cash, accounts receivable, accounts payable and accrued expenses, residuals payable, notes receivable from a related party and a bank note payable.

The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses and residuals payable approximate fair value due to their short term maturities.

The carrying amounts of notes receivable from a related party and bank note payable approximate fair value due to the variable interest rate they carry.

Cash

The Company maintains cash balances at financial institutions of high credit quality. As of December 31, 2016, cash deposits in excess of insured amounts totaled approximately $7,683,000.

Restricted Cash

Under the terms of the processing agreement between UPS-WI and its processing banks, UPS-WI maintains cash accounts as reserves against chargeback losses. As the Company receives fees from the processing bank, a certain percentage is allocated to the cash reserve account.

Inventory

Inventory consists primarily of equipment to be installed in merchant locations to enable them to process electronic transactions. Inventory is stated at the lower of cost or market, which is determined on a FIFO (first in-first out) basis.

F-152


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Notes to Financial Statements
Year Ended December 31, 2016

2. Significant Accounting Policies  – (continued)

Fixed Assets

Fixed assets, which are comprised of telephone systems, software, website, computer equipment and leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which generally is three to five years, or lease term.

Goodwill and Customer Merchant Accounts

Goodwill is not amortized but is instead subject to impairment testing, at least annually. Customer merchant accounts with finite lives are amortized over 66 months as discussed in Note 5.

The Company considers the following to be some examples of indicators that may trigger an impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair market value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusion on impairment.

Revenue Recognition

Electronic Payment Processing

Electronic payment processing and fee income is derived from the electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services as a percentage of each transaction dollar plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks.

Interest Income

Interest income is recorded on an accrual basis, when earned, based on the current lending rate in place.

Reserve for Losses on Merchant Accounts

Disputes between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise quality or merchant services. Such disputes may not be resolved in the merchant’s favor. In these cases, the transaction is “charged back” to the merchant, which means the purchase price is refunded to the customer through the merchant’s acquiring bank and charged to the merchant. If the merchant has inadequate funds, the Company or, under limited circumstances, the Company and the acquiring bank, must bear the credit risk for the full amount of the transaction. The Company evaluates its risk for such transactions and estimates its potential loss for charge-backs based primarily on historical experience and other relevant factors.

The Company records reserves for charge-backs and contingent liabilities when such amounts are deemed to be probable and estimable. The required reserves may change in the future due to new developments,

F-153


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Notes to Financial Statements
Year Ended December 31, 2016

2. Significant Accounting Policies  – (continued)

including, but not limited to, changes in litigation or increased charge-back exposure as the result of merchant insolvency, liquidation, or other reasons. The required reserves are reviewed periodically to determine if adjustments are required.

Electronic Payment Processing Costs

Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, including interchange fees, Visa®, MasterCard® and Discover® dues and assessments, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. Two of the most significant components of electronic processing expenses include interchange and assessment costs, which are set by the credit card associations. Interchange costs are passed on to the entity issuing the credit card used in the transaction and assessment costs are retained by the credit card associations. Interchange and assessment fees are billed primarily as a percentage of dollar volume processed and, to a lesser extent, as a per transaction fee. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s statement of income. During the year ended December 31, 2016, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor.

Income Taxes

The Company is a limited liability company (“LLC”) and therefore pays no corporate taxes. The Company’s income, instead, passes through to its member. Accordingly, no liability for Federal, State and/or local income taxes has been recorded in the accompanying financial statements. As a wholly-owned subsidiary of Holdco, the Company evaluated its tax positions at year end, and based on its analysis, determined that there were no uncertain tax positions.

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

Subsequent Events

The Company has evaluated subsequent events for potential recognition and/or disclosure through February 22, 2017, the date these financial statements were available to be issued.

3. Fixed Assets

The Company’s fixed assets are comprised of the following at December 31, 2016:

     
  Cost   Accumulated
Depreciation
and Amortization
  Net Book
Value
Telephone systems   $ 375,861     $ 155,621     $ 220,240  
Software     488,791       331,712       157,079  
Leasehold improvements     63,644       53,227       10,417  
Computer equipment     93,257       79,040       14,217  
Website     5,205       5,118       87  
Totals   $ 1,026,758     $ 624,718     $ 402,040  

Depreciation expense related to fixed assets for the year ended December 31, 2016 was approximately $198,000.

F-154


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Notes to Financial Statements
Year Ended December 31, 2016

4. Goodwill

The carrying value of goodwill at December 31, 2016 is approximately $1,908,000. The Company performed a qualitative assessment to determine if it is more likely than not that the Company’s fair value is less than its carrying amount. Based on its qualitative assessment, the Company determined that goodwill was not impaired at December 31, 2016 and no further assessment was required.

5. Customer Merchant Accounts

The net carrying value of customer merchant accounts is approximately $1,192,000 which consists of approximately $2,744,000 of gross costs, net of accumulated amortization of approximately $1,552,000 at December 31, 2016. Customer merchant accounts are being amortized over 66 months. Total amortization expense of customer merchant accounts using the sum of the year’s digits is included in depreciation and amortization in the accompanying statement of income was approximately $601,000.

Total expected amortization expense for the next five fiscal years and thereafter is as follows:

 
Year Ending December 31,  
2017     480,935  
2018     353,545  
2019     228,385  
2020     111,382  
2021     17,025  
Thereafter     328  
     $ 1,191,600  

6. Bank Note Payable, Net of Deferred Financing Costs

In June 2015, the Company, CrystalTech Web Hosting, Inc. (“CrystalTech”) and Premier Payments LLC (“Premier”), all subsidiaries of Holdco, collectively as “Borrowers” entered into a Credit and Guarantee Agreement (the “Agreement”) with Goldman Sachs Bank USA which extended a multi draw term loan facility (the “Facility”) up to an aggregate principal amount of $38,000,000. The total outstanding balance under the Facility as of December 31, 2016 was $22,000,000. The Borrowers are collectively liable for the outstanding balance under the Facility. All assets of the Borrowers are pledged as collateral under the Agreement and the Facility is guaranteed by Holdco’s parent, Newtek Business Services Corp (“Newtek”). The Facility provides for monthly/quarterly interest only payments with total principal due at maturity. The Facility matures in June 2019. Borrowings under the facility are classified either as a “Base Rate Loan” or a “LIBOR Rate Loan” at the Company’s election. Each LIBOR Rate Loan shall bear interest on the outstanding balance at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 7%, and each Base Rate Loan shall bear interest on the outstanding balance at a rate equal to (y) the greater of the Prime Rate or 350 basis points, plus (z) 6%. The effective interest rate at December 31, 2016 was 7.67%. The Company may make principal payments within 24 months of the closing date and pay a prepayment premium based on a percentage of the principal outstanding as defined in the Agreement. After 24 months, principal may be repaid under no penalty. The Agreement requires certain restrictive covenants for which the Company is in compliance with as of December 31, 2016. At December 31, 2016, the Company had approximately $16,999,000 of total borrowings outstanding under the Facility. Interest expense and amortization of deferred financing costs for the year ended December 31, 2016 was approximately $1,608,000.

F-155


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Notes to Financial Statements
Year Ended December 31, 2016

6. Bank Note Payable, Net of Deferred Financing Costs  – (continued)

Outstanding borrowings under the Bank note payable consisted of the following at December 31, 2016:

 
Principal   $ 16,998,694  
Unamortized deferred financing costs     (567,165 ) 
Net carrying amount   $ 16,431,529  

7. Notes Receivable — Related Party

The Company had $500,000 outstanding on its revolving line of credit with Newtek, at December 31, 2016. The line, which matures in June 2019, allows for maximum borrowings of $38,000,000 and bears interest at a rate equal to that in effect under the Company’s Facility, at any given time. The Company recorded related party interest income of approximately $183,000 during the year ended December 31, 2016. At December 31, 2016 there was approximately $188,000 in accrued interest income under the line.

8. Related Party Transactions

The Company earned electronic payment processing revenue of approximately $45,000 from Premier. The Company incurred residual expenses totaling approximately $3,878,000 from several related parties. In addition, the Company incurred gateway fees of approximately $138,000 from Secure Cyber Gateway Services, LLC, and breach insurance costs of approximately $270,000 from Newtek Insurance Agency, LLC, which are included in electronic payment processing costs on the statement of income. Salaries and overhead costs of approximately $36,000 charged from CrystalTech are included in salaries and benefits. Payroll processing costs of approximately $20,000 from PMTWorks Payroll, LLC and managed technology services of approximately $160,000 from CrystalTech are included in other general and administrative costs. At December 31, 2016, total amounts due to related parties are approximately $147,000.

Included in salaries and benefits are charges from Newtek related to salaries for management and certain other employees that perform services for the Company. Total amounts allocated to the Company for the year ended December 31, 2016, were approximately $468,000.

The Company’s parent, Holdco, and Newtek are both guarantors of the Facility with Goldman Sachs Bank USA.

9. Commitments and Contingencies

Operating Commitments

The Company entered into noncancellable operating leases for office facilities with future rentals as follows:

 
Year Ending December 31,  
2017     181,067  
     $ 181,067  

Total rent expense for the year ended December 31, 2016 was approximately $186,000.

Under the amended terms of a Service Agreement, amended terms of a Merchant Program Processing Agreement, amended terms of a Preferred Card Agreement, and amended terms of a Marketing Agreement, UPS-WI is required to pay minimum fees of $4,200,000 in total under these agreements during the period January 1, 2016 through December 31, 2017. The term of the Service agreement was extended to December 31, 2018. The Merchant Program Processing Agreement initial term was extended to November 30, 2018 and renews automatically each year. The Marketing Agreement initial term was extended to May 31, 2018 and renews automatically each two years for two year terms. The Preferred Card Agreement initial term was extended to April 30, 2018 and renews automatically for six-month terms.

F-156


 
 

TABLE OF CONTENTS

Universal Processing Services of Wisconsin, LLC
 
Notes to Financial Statements
Year Ended December 31, 2016

9. Commitments and Contingencies  – (continued)

Under the terms of an Independent Sales Organization Agreement and Member Services Provider Agreement between UPS-WI and one of their sponsoring banks, UPS-WI is required to pay monthly minimum fees of $10,000 during the term of the agreement. The Company exceeded the monthly minimum required amount under the agreement for the year ended December 31, 2016. The agreement renews automatically annually.

Under the amended terms of a Processing Services Agreement between UPS-WI and one of their front-end processors, UPS-WI is required to pay a quarterly minimum of $68,000 during the term of the amended agreement. The Company’s fee payments for the 12-month period ended December 31, 2016, exceeded the minimum required amount under these agreements. The agreement expires July 2018.

Litigation

In 2013, the Federal Trade Commission (the “FTC”) amended an existing complaint in the matter Federal Trade Commission v. WV Universal Management, LLC et al., pending in the United States District Court for the Middle District of Florida (the “Court”), to add UPS-WI, as an additional defendant on one count of providing substantial assistance in violation of the Telemarketing Sales Rule. On November 18, 2014, the Court issued an Order granting the FTC’s motion for summary judgment against UPS-WI on the single count. Subsequently, the FTC filed motions for a permanent injunction and equitable monetary relief against UPS-WI and the other remaining defendants. Prior to the Court hearing on the motions, UPS-WI and the FTC reached a settlement on the FTC’s motion for a permanent injunction. The Court granted the FTC’s motion for equitable relief against UPS-WI and the other remaining defendants, ordering that the remaining defendants pay approximately $1,735,000 in equitable monetary relief. This amount was deposited with the Court pending the outcome of an appeal of the judgement.

On June 14, 2016, the United States Court of Appeals for the Eleventh Circuit set aside the Court’s judgment awarding joint and several liability for equitable monetary relief in the amount of approximately $1,735,000 against UPS-WI, and remanded the case to the Court for findings of fact and conclusions of law as to whether and why UPS-WI should be jointly and severally liable for restitution, and in what amount, if any. On October 18, 2016, the Court ordered that the $1,735,000 payment be returned to UPS-WI. On October 26, 2016, the Court entered an equitable monetary judgment against UPS-WI for approximately $1,735,000. UPS-WI has filed a notice of appeal of the judgment. The total $1,735,000 has been accrued and is included in the balance sheet in Accounts payable and accrued expenses. There is no current year income statement effect.

In January 2014, NCMIC Finance Corporation (“NCMIC”) filed a complaint against the Company in the United States District Court for the Southern District of Iowa. The complaint asserted claims against the Company for breach of the UPS-WI and NCMIC agreement for the processing of credit card transactions, and seeks monetary relief. In April 2016, in order to avoid the cost of trial and any appeals, UPS-WI settled the matter for $200,000. The total $200,000 was paid during 2016 and is included in the statement of income in other general and administrative costs.

In September 2014, UPS-WI filed an action in Wisconsin state court against a former independent sales agent and his company. The complaint alleges several causes of action including breach of contract. The defendant filed an answer and filed counterclaims against UPS-WI seeking monetary damages. The court granted certain aspects of defendants’ motions for summary judgment, dismissing certain of the claims asserted by UPS-WI. The matter is presently stayed pending the Wisconsin Supreme Court’s ruling on matters under appeal.

F-157


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)

   
  June 30,
2017
  December 31,
2016
     (Unaudited)   (Note 1)
ASSETS
                 
Investments, at fair value
                 
SBA unguaranteed non-affiliate investments (cost of $246,728 and $219,784, respectively; includes $181,568 and $197,927, respectively, related to securitization trusts)   $ 239,757     $ 211,471  
SBA guaranteed non-affiliate investments (cost of $10,925 and $10,262, respectively)     12,224       11,512  
Controlled investments (cost of $58,447 and $41,001, respectively)     137,005       121,302  
Non-control/non-affiliate investments (cost of $3,255 and $904, respectively)     3,255       904  
Investments in money market funds (cost of $35 and $35, respectively)     35       35  
Total investments at fair value     392,276       345,224  
Cash and cash equivalents     3,550       2,051  
Restricted cash     23,594       20,845  
Broker receivable     23,815       2,402  
Due from related parties     3,345       3,748  
Servicing assets, at fair value     18,124       16,246  
Other assets     10,191       10,934  
Total assets   $ 474,895     $ 401,450  
LIABILITIES AND NET ASSETS
                 
Liabilities:
                 
Bank notes payable   $ 40,045     $ 5,100  
Notes due 2022 (Note 7)     7,895       7,853  
Notes due 2021 (Note 7)     38,939       38,767  
Notes payable – Securitization trusts (Note 7)     101,108       118,122  
Notes payable – related parties     15,741       1,400  
Due to related parties     275       1,227  
Deferred tax liabilities     5,575       5,983  
Accounts payable, accrued expenses and other liabilities     15,073       13,904  
Total liabilities     224,651       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, 17,432 and 14,624 issued and outstanding, respectively)     349       293  
Additional paid-in capital     229,891       188,472  
(Distributions in excess of)/undistributed net investment income     (1,877 )      8,092  
Net unrealized appreciation, net of deferred taxes     12,017       13,008  
Net realized gains/(losses)     9,864       (771 ) 
Total net assets     250,244       209,094  
Total liabilities and net assets   $ 474,895     $ 401,450  
Net asset value per common share   $ 14.36     $ 14.30  

 
 
See accompanying notes to these consolidated financial statements.

F-158


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except for Per Share Data)

       
  Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Investment income:
                                   
From non-affiliate investments:
                                   
Interest income   $ 4,635     $ 2,370     $ 8,870     $ 4,821  
Servicing income     1,723       1,659       3,369       3,030  
Other income     896       624       1,561       1,221  
Total investment income from non-affiliate investments     7,254       4,653       13,800       9,072  
From controlled investments:
                                   
Interest income     121       77       268       159  
Dividend income     2,475       2,493       4,775       4,786  
Other income     54             54        
Total investment income from controlled investments     2,650       2,570       5,097       4,945  
Total investment income     9,904       7,223       18,897       14,017  
Expenses:
                                   
Salaries and benefits     4,980       3,629       9,631       6,973  
Interest     2,617       1,975       5,147       3,463  
Depreciation and amortization     96       85       185       125  
Professional fees     602       954       1,449       1,712  
Origination and servicing     1,269       1,392       2,653       2,653  
Other general and administrative costs     2,020       3,269       3,605       4,552  
Total expenses     11,584       11,304       22,670       19,478  
Net investment loss     (1,680 )      (4,081 )      (3,773 )      (5,461 ) 
Net realized and unrealized gains (losses):
                                   
Net realized gain on non-affiliate investments     8,914       7,534       17,599       13,820  
Net unrealized (depreciation) appreciation on SBA guaranteed non-affiliate investments     (63 )      706       50       768  
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments     1,817       478       1,261       (549 ) 
Net unrealized (depreciation) appreciation on controlled investments     (2,674 )      2,034       (1,743 )      5,724  
Provision for deferred taxes on unrealized appreciation on controlled investments     976       (833 )      410       (2,441 ) 
Net unrealized depreciation on non-control/non-affiliate investments           (27 )            (43 ) 
Net unrealized depreciation on servicing assets     (360 )      (438 )      (969 )      (841 ) 
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash           (1 )            (1 ) 
Net realized and unrealized gains     8,610       9,453       16,608       16,437  
Net increase in net assets   $ 6,930     $ 5,372     $ 12,835     $ 10,976  
Net increase in net assets per share   $ 0.40     $ 0.37     $ 0.76     $ 0.76  
Net investment loss per share   $ (0.10 )    $ (0.28 )    $ (0.22 )    $ (0.38 ) 
Dividends declared per common share   $ 0.40     $ 0.35     $ 0.76     $ 0.70  
Weighted average shares outstanding     17,345       14,481       16,867       14,495  

 
 
See accompanying notes to these consolidated financial statements.

F-159


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)

 
  Six Months
Ended
June 30,
2017
Increase in net assets:
        
Net investment loss   $ (3,773 ) 
Net realized gains on investments     17,599  
Net change in unrealized depreciation on investments     (22 ) 
Net change in unrealized depreciation on servicing assets     (969 ) 
Net increase in net assets     12,835  
Distributions to stockholders:
        
Distributions to stockholders from net investment income     (6,151 ) 
Distributions to stockholders from net realized gains     (6,916 ) 
Total distributions to stockholders     (13,067 ) 
Capital share transactions:
        
Issuance of common stock under dividend reinvestment plan     180  
Stock-based compensation expense     752  
Issuance of common stock in connection with investment in International Professional Marketing, Inc.     1,000  
Issuance of common stock, net of offering costs     39,450  
Net increase in net assets from capital share transactions     41,382  
Total increase in net assets     41,150  
Net assets at beginning of period     209,094  
Net assets at end of period (includes $1,877 of distributions in excess of net investment income)   $ 250,244  
Common shares outstanding at end of period     17,432  
Capital share activity:
        
Shares issued under dividend reinvestment plan     11  
Shares issued in connection with public offerings     2,728  
Shares issued in connection with investment in International Professional Marketing, Inc.     61  
Restricted shares issued under Stock Incentive Plan, net of forfeitures     8  
Net increase in capital activity     2,808  

 
 
See accompanying notes to these consolidated financial statements.

F-160


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)

   
  Six Months Ended June 30, 2017   Six Months Ended June 30, 2016
Cash flows from operating activities:
                 
Net increase in net assets   $ 12,835     $ 10,976  
Adjustments to reconcile net increase in net assets to net cash (used in) provided by operating activities:
                 
Net unrealized appreciation (depreciation) on controlled investments     1,743       (5,724 ) 
Net unrealized depreciation on non-affiliate investments     (1,311 )      (175 ) 
Net unrealized depreciation on servicing assets     969       841  
Realized gains on non-affiliate investments     (17,642 )      (13,805 ) 
Realized losses on non-affiliate investments     43        
Loss on lease     175       1,487  
Amortization of deferred financing costs     794       564  
Deferred income taxes     (410 )      2,441  
Depreciation and amortization     185       125  
Purchase of loan from SBA     (3,821 )       
Purchase of SBA 7(a) loan portfolio     (175 )       
Funding of controlled investments     (20,781 )      (6,150 ) 
Funding of non-control/non-affiliate investments     (3,255 )       
Originations of SBA guaranteed non-affiliate investments     (121,371 )      (100,533 ) 
Principal payments received from controlled investments     6,559       1,600  
Principal payments received from non-control/non-affiliate investments           634  
Return of investment from controlled investment     50        
Proceeds from sale of SBA guaranteed non-affiliate investments     138,526       107,509  
Originations of SBA unguaranteed non-affiliate investments     (37,798 )      (31,351 ) 
Payments received on SBA non-affiliate investments     14,508       9,376  
Other, net     935       193  
Changes in operating assets and liabilities:
                 
Broker receivable     (21,413 )      12,222  
Due to/from related parties     (549 )      220  
Other assets     1,106       663  
Accounts payable, accrued expenses, other liabilities and deferred revenue     (192 )      889  
Change in restricted cash     (1,614 )      15,335  
Capitalized servicing assets     (2,847 )      (2,288 ) 
Other, net     (3 )      19  
Net cash (used in) provided by operating activities     (54,754 )      5,068  
Cash flows from investing activities:
                 
Purchase of fixed assets     (284 )      (255 ) 

 
 
See accompanying notes to these consolidated financial statements.

F-161


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) – (continued)
(In Thousands)

   
  Six Months Ended June 30, 2017   Six Months Ended
June 30, 2016
Cash flows from financing activities:
                 
Net borrowings (payments) on bank lines of credit     34,945       (4,050 ) 
Net borrowings (payments) on related party line of credit     14,341       (847 ) 
Repurchase of common stock under share repurchase plan           (866 ) 
Proceeds from common shares sold, net of offering costs     39,450        
Proceeds from Notes due 2021           40,250  
Dividends paid     (13,067 )      (15,940 ) 
Payments on Notes Payable – Securitization Trusts     (17,516 )      (10,241 ) 
Change in restricted cash related to securitization trusts     (1,135 )      (12,461 ) 
Additions to deferred financing costs     (480 )      (1,740 ) 
Other, net     (1 )      (5 ) 
Net cash provided by (used) in financing activities     56,537       (5,900 ) 
Net increase (decrease) in cash and cash equivalents     1,499       (1,087 ) 
Cash and cash equivalents – beginning of period     2,051       4,308  
Cash and cash equivalents – end of period   $ 3,550     $ 3,221  
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 to Certified Investors   $     $ 435  
Foreclosed real estate acquired   $ 62     $ 124  
Issuance of common shares in connection with investment in International Professional Marketing, Inc.   $ 1,000     $  
Fixed assets acquired from tenant improvement allowance   $     $ 1,288  
Issuance of common stock under dividend reinvestment plan   $ 180     $ 505  

 
 
See accompanying notes to these consolidated financial statements.

F-162


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
JUNE 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)
                                                                       
JWH Designs, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/30/2027     $ 106.3     $ 106.3     $ 91.6       0.04%  
BQRS, Inc. d/b/a Gresham Meineke Car Care Center     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/30/2027       62.5       62.5       55.0       0.02%  
J&M Civil Construction Services LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2027       100.0       100.0       86.2       0.03%  
Veola's Day Spa and Wellness Center Inc.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2027       9.2       9.2       8.2       —%  
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       50.0       51.6       0.02%  
Qycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/30/2027       76.3       76.3       77.5       0.03%  
Bone Bar & Grill LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2042       73.5       73.5       75.2       0.03%  
J. T. O'Neill Company, L.L.C     Real Estate       Term Loan       Prime plus 2.75%       6/30/2027       15.0       15.0       12.9       0.01%  
Hamilton & Associates Real Estate and Investments Firm LLC     Real Estate       Term Loan       Prime plus 2.75%       6/30/2042       54.1       54.1       54.6       0.02%  
Safeguard Construction Company, Inc.     Construction of Buildings       Term Loan       Prime plus 2.75%       6/30/2027       76.3       76.3       65.7       0.03%  
New Chicago Wholesale Bakery Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       6/30/2027       15.0       15.0       14.3       0.01%  
Steigelbauer Associates Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2027       309.0       309.0       314.2       0.13%  
Miguel Fernando Borda PA d/b/a BGR Dental     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/29/2027       50.0       50.0       44.8       0.02%  
ElKareh Brothers Investment, LLC Best Choice Meats Inc     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/29/2027       448.8       448.8       456.4       0.18%  
Oakhill Farms, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2030       100.0       100.0       101.8       0.04%  
Greensboro Plastic Surgical Associates, PA     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/29/2042       578.0       578.0       573.3       0.23%  
Ocean Tran LLC and Dehal Trucking LLC     Truck Transportation       Term Loan       Prime plus 2.75%       6/29/2027       602.5       602.5       519.3       0.21%  
HG Ventures, Inc. d/b/a Diamond Head Trucking     Truck Transportation       Term Loan       Prime plus 2.75%       6/29/2030       1,006.8       1,006.8       876.6       0.35%  
Malhame & Company Publishers & Importers Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/29/2027       90.0       90.0       77.7       0.03%  
Intellixion LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/29/2027       3.8       3.8       3.2       —%  
Best Bees Company     Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       6/29/2027       22.5       22.5       19.4       0.01%  
Foxhop Fitness, LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/28/2027       91.3       41.8       36.9       0.01%  
Akal Express Inc. d/b/a Truck Trailer Service Stop     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/28/2042       60.0       60.0       62.1       0.02%  
Old Dominion Transportation Group, Inc.     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       6/28/2027       1,133.3       1,133.3       998.4       0.40%  
Citibin, Inc.     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       6/27/2027       125.0       125.0       107.8       0.04%  
Auxiliary Systems Inc., Sharrick Company, LLC & KMN, LLC     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       6/27/2030       245.3       245.3       243.8       0.10%  

 
 
See accompanying notes to these consolidated financial statements.

F-163


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
WB Cleaners Inc. d/b/a $2.75 Cleaners     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/27/2027     $ 22.5     $ 22.5     $ 22.1       0.01%  
Ains Holding Company, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/26/2027       1,175.0       1,175.0       1,035.9       0.41%  
Four Seasons Laser Center Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/26/2042       216.3       163.4       168.4       0.07%  
Vella Construction Enterprises, Inc. d/b/a Vella Construction     Construction of Buildings       Term Loan       Prime plus 2.75%       6/23/2027       22.5       22.5       19.4       0.01%  
Rustic LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/23/2042       18.8       18.8       16.9       0.01%  
Northern Industries, LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/23/2042       57.8       57.8       61.0       0.02%  
Birches Group, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/22/2027       50.0       50.0       43.1       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       320.0       317.5       0.13%  
704 Meat Center Inc. d/b/a El Mercado and La Plaza Mercado     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/20/2042       175.0       175.0       180.9       0.07%  
Sanabi Investment,, LLC d/b/a Oscar's Moving and Storage     Truck Transportation       Term Loan       Prime plus 2.75%       6/20/2027       124.0       124.0       112.5       0.04%  
Scarlet Spartan Inc. d/b/a FastSigns of Brighton     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/19/2027       55.0       37.6       33.5       0.01%  
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       400.0       384.5       0.15%  
All Regional Recyclers of Wood LLC d/b/a ARROW, Superior Carting, LLC d/b/a     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       6/15/2042       314.0       314.0       310.1       0.12%  
JAM Media Solutions, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/15/2027       62.5       62.5       53.9       0.02%  
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       92.5       95.2       0.04%  
Susan Hughes d/b/a Aloha Junction B and B     Accommodation       Term Loan       Prime plus 2.75%       6/14/2042       62.5       62.5       66.0       0.03%  
Hull's Kitchen, LLC and HK Too, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/14/2042       96.3       96.3       100.9       0.04%  
ESA 365 Corp and Lucathor Realty LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/14/2042       22.5       22.5       22.8       0.01%  
Yachting Solutions LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       6/12/2027       118.8       118.8       111.5       0.04%  
Refoleen Inc d/b/a 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       354.5       353.7       0.14%  
Skydive California, LLC     Educational Services       Term Loan       Prime plus 2.75%       6/2/2027       55.0       55.0       55.9       0.02%  
SCW, LLC d/b/a Arthur Murray Dance Studio     Educational Services       Term Loan       Prime plus 2.75%       6/2/2042       146.0       146.0       146.0       0.06%  
Speaker City, Inc. and Speaker Town, LLC d/b/a Rollin Thunder     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       6/1/2042       45.6       45.6       46.4       0.02%  
Sage Oil LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       5/31/2027       22.5       22.5       19.4       0.01%  
Funtime, LLC and Universal Entertainment Group LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/31/2027       66.3       66.3       58.1       0.02%  
Impact Grounds Maintenance and Design, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       5/31/2042       79.4       79.4       82.3       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-164


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Ricnet III, Inc. d/b/a Edible Arrangements     Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/31/2027     $ 15.0     $ 14.8     $ 13.0       0.01%  
Haroon Baig, Inc. d/b/a US1 Petrol     Gasoline Stations       Term Loan       Prime plus 2.75%       5/31/2042       264.0       264.0       278.7       0.11%  
Eagle Wood Works LLC     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       5/26/2027       12.0       12.0       11.0       —%  
Hurricane Group, Inc.     Other Information Services       Term Loan       Prime plus 2.75%       5/26/2027       75.0       75.0       64.6       0.03%  
Michell Auto Repair, LLC and and C&M Mitchell, LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/26/2042       193.3       193.3       197.6       0.08%  
Swantown Inn & Spa LLC     Accommodation       Term Loan       Prime plus 2.75%       5/26/2042       116.0       7.4       7.8       —%  
Chet Lemon Enterprises LLC d/b/a All American Sports     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/26/2042       792.5       792.5       836.7       0.33%  
Locavore LLC d/b/a Paloma Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/25/2027       50.0       50.0       44.6       0.02%  
Abdul Naushad MD PC d/b/a Advanced Pain Centers     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/25/2042       393.8       393.8       404.6       0.16%  
Demand Printing Solutions Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/25/2027       213.3       213.3       200.6       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       15.0       13.1       0.01%  
Jung Design Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/25/2027       9.0       9.0       7.8       —%  
Juliador Resources LLC d/b/a Cue Hair Salon and Skin Care     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/24/2027       22.5       22.5       19.4       0.01%  
Innovim, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/24/2027       337.5       337.5       290.9       0.12%  
Shaffer Automotive Repair, LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/24/2030       135.8       135.8       127.0       0.05%  
Gill Express Inc. and Gill Express 2 LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/23/2042       338.8       338.8       335.0       0.13%  
Southeast Recycling, LLC and Southeast Land Holdings LLC
d/b/a 67 Motor
    Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       5/23/2042       181.4       181.4       189.6       0.08%  
Prestige Construction of Florida, LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       5/23/2042       336.4       336.4       327.5       0.13%  
GEM2K, LLC d/b/a Precision Precast Group     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       5/19/2027       162.5       162.5       145.7       0.06%  
Hayden Trucking LLC     Truck Transportation       Term Loan       Prime plus 2.75%       5/19/2027       262.5       262.5       242.0       0.10%  
Tres K Deli, Grocery, Fruit and Meat Inc.     Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/19/2027       8.3       8.3       7.7       —%  
Iron Men Home Repair, Inc. and Ironmen House Lifting Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/19/2042       582.5       582.5       587.9       0.23%  
J Harris Trucking LLC     Truck Transportation       Term Loan       Prime plus 2.75%       5/19/2027       19.5       19.5       18.5       0.01%  
Enfield Tractor & Equipment Co.     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/19/2027       296.3       296.3       283.3       0.11%  
PS Camping, Inc. d/b/a Prospectors RV Resort     Accommodation       Term Loan       Prime plus 2.75%       5/19/2042       257.8       257.8       270.4       0.11%  
Mr. B's Bicycles & Mopeds, Inc.     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       5/18/2042       146.8       146.8       147.3       0.06%  

 
 
See accompanying notes to these consolidated financial statements.

F-165


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Waterford Plumbing Co, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/18/2027     $ 50.0     $ 50.0     $ 43.9       0.02%  
New Image Building Services,
Inc.
    Administrative and Support Services       Term Loan       Prime plus 2.75%       5/18/2027       150.8       150.8       134.7       0.05%  
Bay Car Wash LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/18/2042       120.8       120.8       122.2       0.05%  
Computech Computers Inc.     Educational Services       Term Loan       Prime plus 2.75%       5/17/2027       50.0       50.0       43.1       0.02%  
Arco Electrical Contractors Inc.
d/b/a Arco Construction Group
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/16/2027       360.0       360.0       330.8       0.13%  
5 Stars Learning Center Inc     Social Assistance       Term Loan       Prime plus 2.75%       5/16/2042       61.8       61.8       62.1       0.02%  
Batter & Company, LLC d/b/a Batter Co. Dessert Collection     Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/16/2027       53.8       53.8       47.3       0.02%  
Band Sawn Lumber, LLC and Nathan Ryan Adams     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       5/15/2042       113.8       113.8       112.1       0.04%  
Keys Armored Express, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       5/12/2027       40.0       40.0       36.0       0.01%  
Sanderson Distribution Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       5/12/2027       10.5       10.5       9.1       —%  
SG Linke LLC     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       5/12/2027       108.3       59.1       60.1       0.02%  
B G F Bobby Q's Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/11/2027       7.5       7.5       7.3       —%  
Estelle Finkel Educational Associates, LLC     Educational Services       Term Loan       Prime plus 2.75%       5/11/2027       118.8       118.8       102.4       0.04%  
Labmates, LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       5/10/2027       100.0       100.0       95.4       0.04%  
NHS, LLC     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/9/2027       88.5       88.5       79.6       0.03%  
NHS, LLC     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/9/2042       21.9       21.9       20.5       0.01%  
Innovation Transport, LLC     Truck Transportation       Term Loan       Prime plus 2.75%       5/9/2027       86.3       86.3       81.3       0.03%  
1872 Rosecrans, LLC d/b/a
Good/b/ar
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/9/2027       62.5       43.6       37.9       0.02%  
Arclay, LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       5/5/2030       145.9       145.9       134.4       0.05%  
Benchmark Building, Inc.     Construction of Buildings       Term Loan       Prime plus 2.75%       5/5/2027       22.5       22.5       19.4       0.01%  
Cable Management LLC     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       5/3/2027       59.6       59.6       55.9       0.02%  
Fine Arts Center of Easley, Inc.
d/b/a Midtown Music
    Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       5/2/2042       116.3       116.3       122.7       0.05%  
Zahmel Restaurant Suppliers Corp d/b/a Cash & Carry; Zahners Hardware     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       4/28/2027       88.8       88.2       77.0       0.03%  
Georgia Productions Services LLC     Rental and Leasing Services       Term Loan       Prime plus 2.75%       4/28/2027       91.3       90.7       83.3       0.03%  
Love and Glory Learning Center, Inc.     Social Assistance       Term Loan       Prime plus 2.75%       4/28/2042       78.0       77.9       77.4       0.03%  
JMA Inc. d/b/a Primecut and Mezzo; Primecut at Marquee     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/27/2042       222.5       222.2       234.6       0.09%  

 
 
See accompanying notes to these consolidated financial statements.

F-166


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Sneads Ferry Foods, Inc. d/b/a DQ Grill & Chill     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/27/2042     $ 618.3     $ 183.5     $ 193.7       0.08%  
Asheville's Fun Depot, LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/26/2027       87.5       87.0       88.5       0.04%  
Carl Joseph Johnston d/b/a Viking Transport     Truck Transportation       Term Loan       Prime plus 2.75%       4/26/2027       53.2       32.4       30.7       0.01%  
Resident Research, LLC     Other Information Services       Term Loan       Prime plus 2.75%       4/24/2027       100.0       99.4       85.7       0.03%  
Getting Even LLC d/b/a The Zoo Health Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/21/2027       7.5       7.5       6.7       —%  
Ralph's Hair Salon, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/21/2042       50.0       49.9       50.8       0.02%  
M.E. Interiors LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/20/2027       139.2       138.3       119.2       0.05%  
MJ and M Home Improvements LLC d/b/a House Doctors     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/20/2027       20.5       20.4       17.9       0.01%  
Condron Brothers LLC d/b/a 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       12.7       11.8       —%  
Carpeteria (Markarian) Co.     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       4/13/2027       132.8       132.1       130.7       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       205.2       211.5       0.08%  
Butternuts Beer and Ale LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       4/12/2027       73.7       73.3       74.5       0.03%  
Citizens Lanes, LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/31/2042       619.4       618.0       652.1       0.26%  
The Altitude Group, LLC and Core Home Security, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/31/2027       50.0       49.4       42.6       0.02%  
Shelter Harbor Inn, Inc.     Accommodation       Term Loan       Prime plus 2.75%       3/31/2042       207.5       207.0       218.5       0.09%  
Golden Hen Inc. d/b/a Cafe     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/31/2027       64.7       64.0       55.8       0.02%  
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       185.3       159.6       0.06%  
MIT LLC     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       3/31/2042       87.5       87.3       92.1       0.04%  
Applied Integrated Technologies,
Inc.
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/31/2027       125.0       123.6       106.4       0.04%  
Bear Trail Lodge LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/31/2042       552.5       551.2       574.7       0.23%  
KWG Industries LLC d/b/a Peterson & Marsh Metal Industries     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       3/30/2027       30.0       29.7       29.0       0.01%  
Municipal Hydro Sevices Inc.     Rental and Leasing Services       Term Loan       Prime plus 2.75%       3/30/2027       312.5       309.1       283.8       0.11%  
Signature Rooms, Inc d/b/a Gallery Furniture     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       3/30/2042       495.8       494.6       517.9       0.21%  
Sea Smoke Barbeque, Corp and Danwen LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/30/2042       236.5       236.0       238.1       0.10%  
Schafer Fisheries Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/30/2042       258.6       258.4       264.5       0.11%  

 
 
See accompanying notes to these consolidated financial statements.

F-167


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Discount Price, LLC d/b/a Robert's Market     Gasoline Stations       Term Loan       Prime plus 2.75%       3/29/2042     $ 206.3     $ 205.8     $ 209.6       0.08%  
Douglas K. Soderblom. d/b/a Loma Linda Optometry     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/29/2027       100.0       98.8       89.5       0.04%  
Gauri Hospitality Group LLC d/b/a Microtel Inns & Suites by Wyndham     Accommodation       Term Loan       Prime plus 2.75%       3/29/2042       1,056.3       1,053.8       1,102.8       0.44%  
First Sail Group Inc. and Omen Board Industires LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       3/29/2027       20.0       19.8       18.2       0.01%  
H and H Hotshot Services, Inc. d/b/a AA Hotshot & Logistics     Couriers and Messengers       Term Loan       Prime plus 2.75%       3/29/2030       97.5       96.7       84.2       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       365.8       0.15%  
American Pharmaceutical Innovation Company, LLC     Chemical Manufacturing       Term Loan       Prime plus 2.75%       3/28/2027       30.0       29.7       25.6       0.01%  
Pecos Entertainment LLC d/b/a 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       144.7       0.06%  
Heil & Hornik LLC d/b/a Elysium Tennis     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/27/2042       928.6       926.5       928.0       0.37%  
Robert Dixon PA d/b/a Law Offices of Robert Dixon     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/24/2042       435.5       428.0       447.5       0.18%  
Ericon Inc. d/b/a Quik Pik     Gasoline Stations       Term Loan       Prime plus 2.75%       3/24/2027       62.5       61.8       59.5       0.02%  
Executive Fitness & Nutrition Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/23/2027       20.2       20.0       19.6       0.01%  
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       58.6       53.5       0.02%  
Color Graphic Press, Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       3/23/2027       120.0       118.6       120.5       0.05%  
JBK Truck Trailer and Bus Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/23/2042       88.8       61.5       64.4       0.03%  
Baton Rouge Cargo Services Inc. and 6507 Westport, LLC     Truck Transportation       Term Loan       Prime plus 2.75%       3/22/2042       643.1       641.6       660.7       0.26%  
Vehicle Safety supply LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/21/2027       22.5       22.2       19.2       0.01%  
J Sivilis LLC d/b/a Pet Wants     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/17/2027       12.3       12.2       10.8       —%  
Reservoir International LLC     Educational Services       Term Loan       Prime plus 2.75%       3/16/2027       100.0       98.8       91.9       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       161.8       170.8       0.07%  
Texcor, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/16/2027       300.0       297.2       301.7       0.12%  
Alive Design, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/13/2027       22.5       22.2       19.2       0.01%  
1MTX LLC and Sunrise Transportation and Logistics, LLC and Mustafa M     Truck Transportation       Term Loan       Prime plus 2.75%       3/13/2027       702.9       694.9       598.5       0.24%  
Dwayne Bernard Tate     Truck Transportation       Term Loan       Prime plus 2.75%       3/10/2027       10.5       10.4       9.5       —%  
Elegant Occasions, LLC d/b/a E Productions     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/10/2042       588.2       587.8       591.7       0.24%  
Anthony LLC d/b/a Star of Woodward Market     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/9/2042       115.0       115.0       121.3       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       123.5       108.8       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-168


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Allegro Assisted Living Of Texas     Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       3/6/2027     $ 96.0     $ 94.9     $ 96.2       0.04%  
Robbie E. Bakery and Cafe LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/3/2027       62.5       61.8       53.4       0.02%  
Podium Auto Sales Inc and RRS Property, LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/3/2042       90.8       90.5       90.5       0.04%  
SSI Refrigerated Express Inc. and Robert M Stallone d/b/a SSI Express     Truck Transportation       Term Loan       Prime plus 2.75%       2/28/2027       235.5       231.4       199.3       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       139.5       142.4       0.06%  
Getting Even LLC d/b/a The Zoo Health Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2027       96.2       94.6       84.8       0.03%  
Total Document Solutions Inc and, TDS Services, LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       2/27/2030       312.5       308.7       284.9       0.11%  
McNally Enterprises Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       2/27/2027       65.0       63.8       57.2       0.02%  
Teracore Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/27/2027       163.7       160.9       139.1       0.06%  
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       663.1       636.9       0.25%  
B & J Bicycle Shop Inc.     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       2/24/2027       15.0       14.7       15.0       0.01%  
TMJ Pizza Mesa LLC d/b/a Rosati's Pizza Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/24/2027       106.3       105.6       98.6       0.04%  
3W Enterprises LLC     Textile Product Mills       Term Loan       Prime plus 2.75%       2/24/2042       81.7       81.4       82.1       0.03%  
Eternal Services Incorporated,
Ward-Wilson Funeral Home,
LLC
    Personal and Laundry Services       Term Loan       8.03%       2/23/2042       685.0       684.1       721.9       0.29%  
Victorian Restaurant and Tavern, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/22/2042       107.5       107.2       105.6       0.04%  
DER Services, LLC d/b/a A.K.A. Sports     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       2/17/2042       40.0       39.9       42.1       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       19.2       16.5       0.01%  
Ameritube, LLC and Ravone Properties, LLC     Primary Metal Manufacturing       Term Loan       Prime plus 2.75%       2/14/2042       185.0       184.4       194.6       0.08%  
R&S Barnes Enterprises, Inc. d/b/a Massage Envy Spa     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/10/2027       93.7       92.1       80.3       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       246.6       254.0       0.10%  
Sushiya Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/10/2027       18.8       18.4       16.4       0.01%  
Maximo Canot d/b/a Wash and Dry Laundrymat     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/10/2042       137.5       137.0       141.6       0.06%  
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       1,237.1       1,141.1       0.46%  
Marvic Enterprises Inc d/b/a Jordan's Liquor     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/10/2042       219.0       179.5       188.4       0.08%  
Harrison Logging Company LLC     Forestry and Logging       Term Loan       Prime plus 2.75%       2/9/2027       106.3       104.4       94.9       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-169


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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     $ 326.4     $ 322.3       0.13%  
Christopher Borgia     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/6/2027       12.9       12.7       11.1       —%  
Splashlight LLC, Splashlight Photographic & Digital Studios LLC     Management of Companies and Enterprises       Term Loan       Prime plus 2.75%       2/2/2027       750.0       736.9       677.8       0.27%  
DBMS Consulting, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/1/2042       185.0       184.3       182.1       0.07%  
Brandco, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/31/2027       43.8       42.7       36.8       0.01%  
Chidlren's House Learning, Inc and Tarps Investment Group     Social Assistance       Term Loan       Prime plus 2.75%       1/31/2042       321.3       320.0       321.8       0.13%  
Grand Center Inn L.P. d/b/a Grand Center Inn     Accommodation       Term Loan       Prime plus 2.75%       1/31/2027       15.0       14.6       14.9       0.01%  
AP6 LLC and Amishp LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2042       127.5       108.5       114.5       0.05%  
Fave Realty, Inc.     Real Estate       Term Loan       Prime plus 2.75%       1/30/2042       54.5       54.2       55.2       0.02%  
ZMKNY Tires Inc d/b/a Houston International Tires     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       1/27/2042       107.5       107.0       112.9       0.05%  
House of Bread & Coffee Corp d/b/a Casa Do Pao     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/27/2042       176.0       136.8       133.6       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       22.0       18.9       0.01%  
Return to Excellence Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       1/27/2027       17.7       17.3       17.6       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       17.6       15.1       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       42.3       43.4       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       246.3       228.5       0.09%  
Jolibe LLC and Jolibe Atelier LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/18/2027       10.5       10.3       9.1       —%  
Eickmann Management Group LLC d/b/a Jimmy Johns of Dundee     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/17/2027       93.8       67.8       68.9       0.03%  
Ramjay Inc.     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       1/13/2027       435.0       426.8       389.2       0.16%  
Fullbro Trust d/b/a Menemsha Blues     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       1/13/2027       22.5       22.0       22.3       0.01%  
Echelon Enterprises, Inc     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       1/10/2027       50.0       48.8       49.6       0.02%  
Fort Smith Wings Inc. d/b/a Wing Stop     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/28/2026       19.5       18.9       16.9       0.01%  
Sand Hill Associates, Ltd. d/b/a 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       412.4       0.16%  
Joshua L. Baker     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       12/23/2026       15.7       15.3       13.0       0.01%  
Jacliff Investments Inc. d/b/a International health
Technologies
    Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       12/23/2026       125.0       121.3       103.5       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-170


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
New Image Building Services,
Inc.
    Administrative and Support Services       Term Loan       Prime plus 2.75%       12/21/2026     $ 43.8     $ 42.5     $ 37.7       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       273.2       262.6       0.10%  
Means Enterprises LLC d/b/a FastFrame Frisco     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       12/16/2026       22.5       21.8       18.9       0.01%  
Soon Im. Chin d/b/a Stan C-Store     Gasoline Stations       Term Loan       Prime plus 2.75%       12/15/2041       212.5       211.1       218.3       0.09%  
Sempco, Inc.     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       12/15/2041       42.0       41.7       43.9       0.02%  
Allied Welding Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/15/2041       750.0       745.9       733.4       0.29%  
Ericon, Inc. d/b/a Quik Pik     Gasoline Stations       Term Loan       Prime plus 2.75%       12/15/2041       332.2       330.6       329.4       0.13%  
White Hawk Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       12/15/2026       1,097.7       1,066.9       910.7       0.36%  
Elita 7, LLC     Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       12/15/2041       712.5       707.8       721.3       0.29%  
New Chicago Wholesale Bakery,
Inc.
    Food Manufacturing       Term Loan       Prime plus 2.75%       12/15/2041       452.8       449.8       444.2       0.18%  
Techni-Pro Institute LLC     Educational Services       Term Loan       Prime plus 2.75%       12/15/2026       190.0       184.3       162.2       0.06%  
Trison Enterprises Inc. d/b/a Lee's Automotive     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/14/2041       407.5       404.8       409.1       0.16%  
Cardinal Homes Inc. and Bret A Berneche     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       12/14/2041       121.3       120.4       126.3       0.05%  
D and E Hardware Co. and D and E Pump Sales and Servi     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       12/14/2041       528.6       525.1       522.1       0.21%  
HMG Strategy, LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/14/2026       50.0       48.5       41.4       0.02%  
AGG Management Team LLC d/b/a Chevron     Gasoline Stations       Term Loan       Prime plus 2.75%       12/14/2041       287.5       285.6       300.4       0.12%  
Cardinal Homes Inc,. Alouette Holdings Inc.     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       12/14/2026       1,071.3       1,039.3       1,052.7       0.42%  
Wayfarer Bicycle LLC     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       12/13/2041       92.5       91.9       89.5       0.04%  
Success Advertising Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/13/2041       466.5       463.4       480.1       0.19%  
Roast Beef Levittown LLC d/b/a Arby's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/13/2026       465.0       456.6       462.5       0.18%  
Queen Express LLC     Gasoline Stations       Term Loan       Prime plus 2.75%       12/13/2041       187.5       186.3       193.1       0.08%  
Mack Team Enterprises Inc. d/b/a The UPS Store #6815     Couriers and Messengers       Term Loan       Prime plus 2.75%       12/9/2026       20.4       19.8       17.8       0.01%  
Recycling Revolution, LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/9/2041       92.2       91.6       91.0       0.04%  
Myndshft Technologies LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/9/2026       775.0       751.9       714.6       0.29%  
ˆNew Life Hospital LLC     Hospitals       Term Loan       Prime plus 2.75%       12/8/2041       1,195.5       1,187.6       1,249.3       0.50%  
Imagine By Carleen Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/8/2041       52.5       52.2       53.7       0.02%  
Hanson's Greeks LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/8/2026       11.3       10.9       11.1       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-171


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Yachting Solutions LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       12/7/2029     $ 71.3     $ 69.8     $ 66.5       0.03%  
T and B Boots Inc d/b/a Takken's Shoes     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       12/7/2026       100.0       98.4       91.9       0.04%  
Lan Doctors, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/7/2026       237.5       230.4       225.8       0.09%  
Lilo Holdings LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/5/2026       15.9       15.4       14.0       0.01%  
ˆThe Lake Shore Hospitality Inc
d/b/a Dowagiac Baymont Inn & Suites
    Accommodation       Term Loan       Prime plus 2.75%       12/5/2041       352.5       350.6       361.6       0.14%  
Transmission Solutions Group, Inc. and Calhoun Satellite Communicatio     Telecommunications       Term Loan       Prime plus 2.75%       12/2/2041       141.3       141.3       131.7       0.05%  
Calhoun Satellite Communications, Inc.     Telecommunications       Term Loan       Prime plus 2.75%       12/2/2026       192.5       189.1       169.1       0.07%  
Noso Development LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       12/1/2026       75.0       72.8       62.1       0.02%  
ˆEricon, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/1/2041       726.1       722.5       723.9       0.29%  
B4 Fitness LLC d/b/a The Zoo Health Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/30/2026       22.5       21.7       19.3       0.01%  
RD Management, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2026       213.7       206.0       178.1       0.07%  
Imaginarium Foods LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2042       376.7       371.8       377.6       0.15%  
ˆPebble 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       67.0       70.4       0.03%  
Sharaz Shah d/b/a Thomas
Jewelers
    Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       11/30/2026       8.1       7.8       6.7       —%  
Choe Trading Group, Inc. d/b/a Rapid Printers of Monterey     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       11/30/2026       22.5       21.7       21.3       0.01%  
Studio Find It Georgia, Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/30/2026       7.5       7.2       6.3       —%  
ˆQuick Ship, LLC     Couriers and Messengers       Term Loan       Prime plus 2.75%       11/30/2026       10.5       10.1       8.6       —%  
ˆUsman Jalil, LLC d/b/a Food
Mart
    Gasoline Stations       Term Loan       Prime plus 2.75%       11/29/2041       233.3       231.4       224.4       0.09%  
Honor Mansion, Inc.     Accommodation       Term Loan       Prime plus 2.75%       11/29/2026       87.5       84.3       85.4       0.03%  
Access Staffing, LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       11/29/2026       1,125.0       1,084.4       925.7       0.37%  
CRK Mens, LLC d/b/a Spiff for
Men
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/23/2026       106.3       102.5       89.4       0.04%  
Merchant Coterie, Inc.     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       11/23/2026       125.0       120.5       102.9       0.04%  
WPN Recycling Company LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       11/23/2026       22.5       21.7       22.0       0.01%  
Hafa Adai Signs and Graphics LLC d/b/a Fastsigns of Auburn -#281901     Administrative and Support Services       Term Loan       Prime plus 2.75%       11/23/2026       60.0       57.8       50.0       0.02%  
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       120.5       102.9       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-172


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Rognes Corp d/b/a RTS     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       11/22/2026     $ 389.3     $ 373.8     $ 341.7       0.14%  
Bouquet Restaurant LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/22/2041       125.0       124.0       125.6       0.05%  
ˆJ.B.K Truck Trailer and Bus Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/22/2041       435.0       431.5       430.2       0.17%  
6E Technologies LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/22/2026       175.0       167.7       154.3       0.06%  
Skaggs RV Outlet LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       11/21/2026       100.0       96.4       97.6       0.04%  
Catherine Christine Morin d/b/a
Purr-Fect Pets
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/17/2026       18.7       18.1       15.4       0.01%  
Stratmar Systems Inc d/b/a Stratmar Retail Services     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/16/2026       68.5       66.0       66.9       0.03%  
Hoosier Health Plus, LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/15/2026       125.0       120.5       113.4       0.05%  
ˆJ. A. Kohlhepp Sons, Inc. d/b/a Kohlhepp's True Value     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/10/2041       446.0       442.4       452.9       0.18%  
Hackensack Steel Corporation and Luzerne Ironworks Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/10/2026       239.2       230.6       232.7       0.09%  
ˆPanther Ironworks and Rigging Solutions LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/10/2026       151.2       145.8       133.6       0.05%  
ˆJ. A. Kohlhepp Sons, Inc. d/b/a Kohlhepp's True Value     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/10/2026       188.7       181.9       179.9       0.07%  
MIK LLC d/b/a Firehouse Subs     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/9/2026       200.0       196.4       169.9       0.07%  
ˆRich's Food Stores LLC d/b/a Hwy 55 of Wallace     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/9/2026       43.7       42.2       39.3       0.02%  
ˆBovill Creative, LLC     Real Estate       Term Loan       Prime plus 2.75%       11/9/2041       281.2       279.1       293.6       0.12%  
ˆDyer Properties, LLC and Bayview Pharmacy, Inc.     Health and Personal Care Stores       Term Loan       Prime plus 2.75%       11/9/2041       240.3       238.3       235.3       0.09%  
ˆBig Apple Entertainment Partners LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/9/2026       175.0       168.7       144.0       0.06%  
Surgarloaf Concepts LLC d/b/a Fat Biscuit     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/8/2026       168.8       167.8       170.0       0.07%  
ˆFine Line Interiors, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/4/2041       87.5       84.3       88.6       0.04%  
131 Miles LLC and Ohm Shubh Laxmi, LLC. d/b/a Mr Hero     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/3/2041       127.5       87.2       91.8       0.04%  
ˆVeracruz Shabo, LLC Waterfalls Quick Lube LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/1/2041       118.7       118.3       120.8       0.05%  
Glocecol LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       11/1/2026       75.0       72.3       73.2       0.03%  
ˆBloomquist Communications Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2026       60.0       57.5       49.0       0.02%  
ˆMoolchan Enterprises LLC d/b/a Staying Green     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2026       18.1       17.4       16.4       0.01%  
Middlesex Auto Sales Corp     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       10/31/2041       125.0       124.0       126.9       0.05%  
ˆWoodstock Enterprises Corp d/b/a True Scent Candle Co.     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       10/31/2041       88.8       87.9       85.6       0.03%  
ˆPatina Investment, Inc and Ram & Sons, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/27/2041       175.0       173.3       182.3       0.07%  

 
 
See accompanying notes to these consolidated financial statements.

F-173


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆFibAire Communications, LLC     Telecommunications       Term Loan       Prime plus 2.75%       10/27/2026     $ 107.5     $ 102.9     $ 94.5       0.04%  
Elite Structures Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/27/2029       225.0       220.9       215.1       0.09%  
ˆBonita Stone LLC and Castone Creations Inc.     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       10/25/2041       264.4       261.9       260.8       0.10%  
ˆEmpire Processor Services Inc. and Verrazano Wholesale Dist., Inc.     Nonstore Retailers       Term Loan       Prime plus 2.75%       10/25/2026       131.2       125.7       127.3       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       407.0       405.4       0.16%  
Worldwide Estate, Inc. d/b/a Washington Heights Manor     Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       10/21/2041       225.0       222.4       234.0       0.09%  
Eco Vehicle Systems LLC     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       10/21/2026       955.5       916.4       916.5       0.37%  
ˆGold Wind Logistics LLC     Truck Transportation       Term Loan       Prime plus 2.75%       10/20/2041       175.0       173.4       182.4       0.07%  
ˆSpeaker City, Inc. d/b/a Rollin Thunder     Electronics and Appliance Stores       Term Loan       Prime plus 2.75%       10/14/2041       125.0       123.8       126.1       0.05%  
ˆMaine Service Corp     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       10/13/2026       206.2       197.7       185.2       0.07%  
ˆJustin Partlow     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       10/13/2026       19.5       18.7       15.9       0.01%  
ˆReliable Recovery Services LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       10/7/2026       112.5       107.7       98.1       0.04%  
ˆAilky Corporation     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       10/3/2026       250.0       239.4       210.0       0.08%  
ˆWyspen Corporation d/b/a Charlestown Ace     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       10/3/2026       36.0       34.5       29.4       0.01%  
ˆMegaPhase, LLC     Computer and Electronic Product Manufacturing       Term Loan       Prime plus 2.75%       9/30/2026       150.0       142.7       137.6       0.05%  
ˆSeaway LLC and Reklaw LLC
d/b/a Allure Lounge
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2041       137.5       136.0       142.9       0.06%  
ˆJJA Transportation Management
Inc.
    Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2026       52.5       49.9       42.6       0.02%  
ˆAdelwerth Bus Corp.     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2041       242.8       240.3       238.1       0.10%  
Adelwerth Bus Corporation, Transportation Leasing Corp.     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2029       654.0       632.7       609.3       0.24%  
ˆLas Casuelas Del Este Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/29/2041       800.0       792.0       815.6       0.33%  
Vision Automotive LLC d/b/a Vision Chrysler Jeep Dodge Ram of Defiance     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/29/2029       671.5       648.8       607.9       0.24%  
ˆThunderdome Racing Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/29/2026       19.0       18.1       17.9       0.01%  
ˆGraphics, Type and Color Enterprises Inc d/b/a Clubflyers.com     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       9/28/2041       850.0       840.4       883.7       0.35%  
ˆParagon 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       401.2       383.7       0.15%  
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       616.3       567.1       0.23%  

 
 
See accompanying notes to these consolidated financial statements.

F-174


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBeadon Inc     Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/28/2026     $ 22.5     $ 21.4     $ 21.4       0.01%  
ˆCNC Precision Machine, Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/28/2041       1,250.0       1,235.9       1,236.9       0.49%  
ˆCD Game Exchange Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/28/2026       22.5       21.4       18.3       0.01%  
ˆKyle M Walker DDS, PC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/27/2026       217.8       207.4       182.6       0.07%  
Reynolds Fence & Guardrail Inc.     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       9/27/2026       629.5       598.8       578.8       0.23%  
ˆLuv 2 Play Nor Call, LLC d/b/a Luv 2 Play     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/27/2026       52.5       49.9       44.7       0.02%  
ˆLuna Nueva LLC d/b/a Bio Builders     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/27/2026       15.0       14.3       12.6       0.01%  
ˆSarah S Olelewe MD Inc.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/26/2041       292.4       289.7       290.7       0.12%  
ˆTPFC, LLC d/b/a The Picture Frame Company     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/26/2041       58.8       58.1       58.4       0.02%  
ˆRidge Road Equestrian LLC d/b/a Ricochet Ridge Ranch     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       9/26/2026       9.0       8.6       8.4       —%  
ˆPeopleBest Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/26/2026       15.0       14.3       12.2       —%  
ˆB4 Fitness LLC d/b/a The Zoo Health Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/23/2026       87.5       83.2       74.1       0.03%  
ˆMr. Mulch, Inc.     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       9/23/2041       405.8       401.2       377.0       0.15%  
ˆInformationTelevision Network
Inc.
    Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       9/22/2041       836.7       831.8       864.6       0.35%  
ˆGRA Financial Services Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/22/2026       12.0       11.4       9.7       —%  
ˆWrecking Crew Media LLC     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       9/21/2026       50.0       47.6       40.6       0.02%  
ˆCuppiecakes LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/21/2041       22.5       22.2       22.3       0.01%  
ˆBenoit's Towing and Recovery LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       9/20/2026       12.0       11.4       9.9       —%  
ˆConsulting Solutions Inc. and Mark Luciani     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/20/2026       22.5       21.4       20.2       0.01%  
ˆBrittany Burns LLC d/b/a Dreams Come True     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/19/2026       12.9       12.3       12.4       —%  
ˆEyncon LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/16/2041       50.0       49.4       50.1       0.02%  
ˆTresa S.Parris d/b/a Wagging Tails Grooming     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/16/2026       8.0       7.6       6.5       —%  
ˆThe Merrin Group LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/15/2026       175.0       166.4       159.9       0.06%  
ˆRich's Food Stores LLC d/b/a Hwy 55 of Wallace     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/14/2026       145.5       138.6       129.1       0.05%  
ˆAtlantic Alarm Systems and Services LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/14/2026       15.4       14.7       13.0       0.01%  
ˆMetropet Dog Center, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/13/2041       109.3       108.0       109.8       0.04%  
ˆMarquis Cattle Company     Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       9/13/2026       50.0       48.0       48.6       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-175


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBingham 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     $ 81.6     $ 79.9       0.03%  
ˆArtisan Infrastructure Holdings, LLC     Data Processing, Hosting, and Related Services       Term Loan       Prime plus 2.75%       9/7/2026       125.0       118.9       101.4       0.04%  
ˆSRA Mechanicial Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/6/2041       43.7       43.3       45.3       0.02%  
ˆSandia Enterprises Inc d/b/a Massage Envy Spa     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/6/2026       62.5       59.4       50.7       0.02%  
ˆAnimal Intrusion Prevention Systems Holding Company,
LLC
    Administrative and Support Services       Term Loan       Prime plus 2.75%       8/30/2026       125.0       118.4       103.7       0.04%  
ˆSuncrest Stone Products LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2026       586.7       554.3       496.9       0.20%  
ˆClark Realty LLC     Real Estate       Term Loan       Prime plus 2.75%       8/29/2041       237.5       234.5       225.8       0.09%  
ˆRaem Corporation d/b/a Dryclean Express     Personal and Laundry Services       Term Loan       Prime plus 2.75%       8/29/2041       72.5       71.6       74.3       0.03%  
ˆSuncrest Stone Products LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2041       649.6       641.4       598.6       0.24%  
ˆTAGR Inc d/b/a Miami Grill 137 and John Nakis     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/26/2026       106.8       100.9       88.4       0.04%  
ˆWarren Dale Warrington d/b/a Custom Paint and Body     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/26/2041       101.3       100.0       102.2       0.04%  
ˆAlbert Basse Associates Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       8/25/2026       62.5       59.0       59.5       0.02%  
ˆDean Technology Inc     Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       8/25/2041       387.1       382.2       398.8       0.16%  
ˆRosmel Pools Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026       22.5       21.3       18.6       0.01%  
ˆAvery Management Inc. d/b/a Whetstone Upholstery     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026       10.7       10.1       8.6       —%  
ˆTabadesa Associates Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/25/2026       22.5       21.3       18.1       0.01%  
ˆTR Companies LLC d/b/a True Value Rental and Liberty Rental 4 U     Rental and Leasing Services       Term Loan       Prime plus 2.75%       8/25/2026       90.0       85.0       72.5       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       493.2       514.7       0.21%  
ˆTim's Tire & Automotive Center, LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       8/16/2026       816.6       768.3       697.7       0.28%  
ˆLuv 2 Play Temecula, LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       8/15/2026       60.0       56.7       48.3       0.02%  
Bear Creek Entertainment LLC d/b/a The Woods at Bear Creek     Accommodation       Term Loan       Prime plus 2.75%       8/12/2041       437.5       279.1       288.1       0.12%  
ˆ2 Cool Beans LLC d/b/a Menchies's Frozen Yogurt     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/11/2026       82.5       77.9       66.5       0.03%  
ˆGrayson O Company     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/10/2041       625.0       617.1       643.7       0.26%  
ˆCharal Investments LLC d/b/a Orange Theory Fitness     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       8/10/2026       87.5       82.7       70.5       0.03%  
ˆPCNKC Inc d/b/a Plato's Closet     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       8/10/2026       18.7       17.8       15.6       0.01%  
ˆPaul Belanger d/b/a Paul Belanger Landscaping     Administrative and Support Services       Term Loan       Prime plus 2.75%       8/9/2026       15.0       14.2       12.1       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-176


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ303 Tower Drive LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       7/29/2041     $ 400.2     $ 394.6     $ 405.7       0.16%  
ˆLittle Tree Huggers Child Care LLC     Social Assistance       Term Loan       Prime plus 2.75%       7/29/2041       140.0       138.0       144.8       0.06%  
ˆThe Hungry Rhino LLC     Real Estate       Term Loan       Prime plus 2.75%       7/29/2041       76.2       75.2       75.3       0.03%  
ˆNicolette Reiser d/b/a Comfort & Balance     Personal and Laundry Services       Term Loan       Prime plus 2.75%       7/29/2041       75.0       73.9       75.5       0.03%  
ˆUSA General Investment LLC d/b/a Braniff Paint and Body Shop     Repair and Maintenance       Term Loan       Prime plus 2.75%       7/29/2026       22.5       21.1       18.6       0.01%  
ˆ676 Club LP d/b/a The Green Door Tavern/The Drifter     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/28/2041       670.0       660.5       685.1       0.27%  
ˆKJCKD Inc d/b/a Camelot Print & Copy Centers/Copy A Second     Administrative and Support Services       Term Loan       Prime plus 2.75%       7/28/2041       587.0       578.7       581.9       0.23%  
ˆMacIver Corporation d/b/a Division Camera     Rental and Leasing Services       Term Loan       Prime plus 2.75%       7/28/2026       1,250.0       1,173.0       1,106.8       0.44%  
ˆJ 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%  
ˆApple Tree NC Inc d/b/a Williams Farm & Garden Center     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       7/28/2041       337.0       332.2       329.3       0.13%  
ˆIntrepid Trinity LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       7/28/2041       62.5       61.6       62.7       0.03%  
ˆBig Apple Entertainment Partners LLC d/b/a Ripley's Believe It or Not     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       7/28/2026       300.0       281.5       240.1       0.10%  
ˆKidtastic LLC d/b/a The Little Gym of Audubon     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       7/27/2026       53.7       52.8       45.0       0.02%  
ˆGF Libations Inc d/b/a Minuteman Press     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       7/27/2041       40.5       39.0       34.7       0.01%  
ˆEPEC Juice LLC d/b/a Jamba Juice     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/27/2026       82.5       78.4       66.8       0.03%  
ˆPeckett's Inc     Crop Production       Term Loan       Prime plus 2.75%       7/27/2041       225.0       223.4       234.8       0.09%  
ˆPinco Pizza LLC d/b/a Jet's Pizza     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/27/2026       72.9       69.3       68.3       0.03%  
ˆJAG Unit 1, LLC d/b/a Arooga's Grille House and Sports Bar     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/27/2026       125.0       117.3       100.0       0.04%  
ˆThe Grasso Companies, LLC and Grasso Pavement Maintenance, LLC     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       7/26/2026       91.0       85.5       78.2       0.03%  
ˆGino Italian American Deli and Meat Market Inc     Food and Beverage Stores       Term Loan       Prime plus 2.75%       7/25/2041       536.8       530.2       528.1       0.21%  
ˆMy Sainath Inc d/b/a Motel 6     Accommodation       Term Loan       Prime plus 2.75%       7/22/2041       305.4       301.1       310.4       0.12%  
ˆRobert G Larson State Farm Insurance     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       7/22/2026       22.5       21.1       18.0       0.01%  
ˆJ and D Resources LLC d/b/a Aqua Science     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2026       130.5       122.5       105.6       0.04%  
ˆRobert P Daniels d/b/a Ginger and Friend's Peppermint Village Gift Shop     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       7/18/2026       15.8       14.8       12.6       0.01%  
Franklin Firm LLC d/b/a Luv 2 Play     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       7/15/2041       173.3       171.4       172.5       0.07%  
ˆBillingsworks LLC d/b/a Spoon Shine Cafe     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/15/2026       9.7       9.1       9.2       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-177


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBe Beautiful LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       7/14/2041     $ 66.5     $ 65.6     $ 67.6       0.03%  
ˆTakeuchi Commercial Cleaning Services, LLC d/b/a We Clean San Diego     Administrative and Support Services       Term Loan       Prime plus 2.75%       7/13/2026       46.3       43.4       37.0       0.01%  
ˆJacob Rugs LLC d/b/a Rugs
Outlet
    Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       7/13/2026       65.6       61.6       62.3       0.02%  
ˆRM Hawkins LLC d/b/a Pure Water Tech West     Nonstore Retailers       Term Loan       Prime plus 2.75%       7/7/2026       50.0       47.0       45.0       0.02%  
ˆDino Smiles Children's Cosmetic Dentistry     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       7/7/2026       14.3       13.4       11.8       —%  
Nevey's LLC d/b/a Stark Food III     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/30/2041       293.9       290.3       297.8       0.12%  
ˆSoregard Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       6/30/2041       278.8       274.4       263.2       0.11%  
ˆMartin Inventory Management LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/30/2026       105.8       98.6       99.7       0.04%  
ˆP L H Pharmaco Inc d/b/a Farmacia San Jose     Health and Personal Care Stores       Term Loan       Prime plus 2.75%       6/30/2026       175.0       163.0       161.2       0.06%  
ˆDesert Tacos LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2026       98.7       94.5       89.0       0.04%  
ˆVMA Technologies LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/30/2026       22.5       21.0       17.9       0.01%  
ˆCorning 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       186.3       190.2       0.08%  
ˆCastone Creations Inc     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       6/29/2026       87.5       81.5       72.7       0.03%  
ˆNinsa LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2041       112.5       110.7       116.4       0.05%  
ˆO.D.S. Inc d/b/a 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       130.5       114.3       0.05%  
ˆWGI, LLC d/b/a Williams Grant Inn     Accommodation       Term Loan       Prime plus 2.75%       6/29/2041       131.2       129.2       130.1       0.05%  
ˆKWG Industries, LLC d/b/a Peterson & Marsh Metal Industries     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       6/29/2041       304.5       300.2       307.0       0.12%  
ˆE & P Holdings 1 LLC and Evans & Paul LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       6/28/2026       125.0       116.7       103.0       0.04%  
ˆMaidPro Marin d/b/a MaidPro     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/28/2026       17.6       16.4       13.9       0.01%  
ˆEdge Pest Control LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/27/2026       750.0       699.0       595.6       0.24%  
ˆAll Printing Solutions, Inc. d/b/a Pryntcomm     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       6/27/2041       545.6       537.7       519.8       0.21%  
ˆIsland Time Investments, LLC d/b/a Swantown Inn Bed & Breakfast     Accommodation       Term Loan       Prime plus 2.75%       6/24/2041       101.2       99.7       104.7       0.04%  
ˆJumbomarkets Inc d/b/a Rines Jumbomarkets     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/24/2026       50.0       46.6       39.7       0.02%  
ˆEl Basha Inc d/b/a RPM West San Fernando Valley     Real Estate       Term Loan       Prime plus 2.75%       6/24/2026       22.5       18.8       16.0       0.01%  
ˆYellow Cab Company of Kissimmee Inc     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       6/24/2041       56.8       55.9       53.8       0.02%  
ˆVisual Advantage LLC d/b/a Signs Now Perryberg     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/23/2041       91.2       89.8       89.6       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-178


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLong Island Comedy LLC d/b/a Governors and New York Comedy, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/23/2041     $ 187.5     $ 184.6     $ 186.3       0.07%  
Shooting Sports Academy LLC and Jetaa LLC d/b/a Shooting Sports Academy     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/23/2041       494.7       490.5       480.6       0.19%  
ˆSNS of Central Alabama, LLC d/b/a Steak N Shake d/b/a Steak N Shake     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/21/2026       57.5       53.6       48.8       0.02%  
ˆItalian Heritage Tile and Stone
Inc
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/20/2026       62.5       58.2       49.6       0.02%  
ˆEvergreen Investment & Property Management LLC, Universal Kidney Center     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/20/2041       1,250.0       1,234.6       1,275.4       0.51%  
ˆBagelicious, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/17/2026       54.5       50.8       43.6       0.02%  
ˆT and B Boots Inc d/b/a Takken's Shoes     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       6/17/2026       225.0       212.8       214.4       0.09%  
ˆWinegirl Wines LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       6/16/2026       11.3       10.5       10.6       —%  
ˆNKJ Lusby Donuts LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/16/2026       22.5       21.0       17.9       0.01%  
ˆBlue Eagle Transport Inc, Greeneagle Transport Inc and Golden Eagle Transport     Couriers and Messengers       Term Loan       Prime plus 2.75%       6/16/2026       583.0       538.5       458.8       0.18%  
ˆJai-Alexia Consulting, Inc.     Couriers and Messengers       Term Loan       Prime plus 2.75%       6/15/2026       11.8       11.0       9.4       —%  
ˆPumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares     Social Assistance       Term Loan       Prime plus 2%       6/15/2041       515.2       506.3       489.7       0.20%  
ˆStrag Industries LLC d/b/a Meineke Car Care Center 841     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/15/2026       15.0       14.0       13.0       0.01%  
ˆLuv 2 Play AZ LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/10/2026       62.5       58.2       57.0       0.02%  
ˆRefoleen Inc d/b/a Spice and Tea Exchange     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/10/2026       85.0       80.7       68.8       0.03%  
ˆVBGB Uptown, LLC d/b/a VBGB Beer Hall & Garden     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/8/2026       84.0       78.3       66.7       0.03%  
ˆScimTech Industries Inc d/b/a Archer Aerospace     Computer and Electronic Product Manufacturing       Term Loan       Prime plus 2.75%       6/6/2026       12.0       11.2       9.5       —%  
ˆLarry H. Patterson and Rainbow Movers, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       6/6/2026       22.5       21.0       18.0       0.01%  
ˆSolvit Inc and Solvit North Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/3/2026       250.0       234.3       210.2       0.08%  
ˆAP5 LLC d/b/a Krauser's Food Store     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/2/2041       242.5       238.7       241.5       0.10%  
ˆATI Jet Inc     Air Transportation       Term Loan       Prime plus 2.75%       5/31/2026       518.8       480.3       429.8       0.17%  
ˆFarmer Boy Diner Inc d/b/a Farmer Boy Diner & Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/31/2026       50.0       46.3       46.8       0.02%  
Angelo Faia d/b/a AVF Construction     Construction of Buildings       Term Loan       Prime plus 2.75%       5/27/2041       100.0       97.8       98.2       0.04%  
ˆPremier Athletic Center of Ohio,
Inc
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/27/2026       87.5       81.0       81.9       0.03%  
ˆSouthwest Division Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       5/26/2026       8.3       7.6       6.9       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-179


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆJack 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     $ 202.7     $ 202.2       0.08%  
ˆMersada Holdings LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       5/26/2026       337.5       312.4       315.9       0.13%  
ˆInternational Kitchen Supply LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/25/2026       186.8       173.0       156.1       0.06%  
ˆPennyLion LLC d/b/a Creamistry     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/25/2026       81.0       75.9       66.6       0.03%  
ˆGroth Lumber Co. Inc. d/b/a True Value     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       5/25/2026       22.5       20.8       21.1       0.01%  
ˆIsland Life Graphics Inc d/b/a FASTSIGNS #576     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       5/24/2026       22.5       20.8       18.0       0.01%  
ˆPowerspec Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/24/2026       87.5       81.0       69.1       0.03%  
ˆHorseshoe Barbecue, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/23/2029       15.0       13.3       13.6       0.01%  
ˆPro Auto Repair LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/20/2026       7.5       6.9       6.7       —%  
ˆElderfriend Inc d/b/a Granny Nannies d/b/a GN Live Scan     Social Assistance       Term Loan       Prime plus 2.75%       5/20/2026       12.7       11.8       10.1       —%  
ˆCM Lab Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/20/2026       172.6       166.1       154.8       0.06%  
ˆNational Air Cargo Holdings Inc     Air Transportation       Term Loan       Prime plus 2.75%       5/20/2026       1,250.0       1,156.9       1,143.8       0.46%  
ˆJ&A Laundromat Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/18/2026       67.5       62.5       54.8       0.02%  
ˆDedicated Incorporated     Administrative and Support Services       Term Loan       Prime plus 2.75%       5/18/2041       46.5       45.7       46.4       0.02%  
ˆHBA LLC d/b/a Palmetto
Twist-Vista
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/18/2026       22.5       20.8       18.2       0.01%  
ˆJ Harris Trucking, LLC     Truck Transportation       Term Loan       Prime plus 2.75%       5/13/2026       60.0       40.0       36.4       0.01%  
ˆStudio Find It Georgia Inc     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/13/2026       22.5       20.8       18.4       0.01%  
ˆFJN Catering Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2041       262.5       258.4       269.4       0.11%  
ˆLED Lighting Enterprises LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/13/2026       22.5       20.8       18.2       0.01%  
ˆLuv 2 Play OC Inc     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       5/12/2026       62.5       61.2       52.2       0.02%  
ˆPumpkin Patch Inc and Christine Feliciano and Antonio Feliciano     Social Assistance       Term Loan       Prime plus 2.75%       5/12/2041       132.5       130.1       130.4       0.05%  
ˆThe Delon Group LLC d/b/a I Love Juice Bar     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/12/2026       55.0       51.2       43.7       0.02%  
ˆSabir Inc. d/b/a Bear Diner     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/11/2041       123.8       121.8       125.3       0.05%  
ˆGator D'Lites LLC d/b/a D'Lites Emporium     Food and Beverage Stores       Term Loan       Prime plus 2.75%       5/5/2026       22.5       20.8       17.7       0.01%  
ˆWarner Home Comfort, LLC d/b/a Smith Piping     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/29/2041       82.5       81.0       81.3       0.03%  
ˆKeller, Fishback & Jackson LLP     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/29/2026       131.8       120.1       121.5       0.05%  
ˆMarc S. Rosenberg P.C. d/b/a Mammuth and Rosenberg     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/29/2026       22.5       20.7       17.6       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-180


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMay-Craft Fiberglass Products
Inc
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       4/29/2041     $ 247.5     $ 242.9     $ 255.3       0.10%  
ˆAlpha Omega Trucking LLC     Truck Transportation       Term Loan       Prime plus 2.75%       4/29/2041       175.8       174.0       182.8       0.07%  
ˆScoler LLC d/b/a Gold's Gym     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/29/2026       262.5       241.2       216.2       0.09%  
ˆEmpowerschool LLC and Empower Autism Academy, LLC     Social Assistance       Term Loan       Prime plus 2.75%       4/29/2041       151.9       149.1       156.6       0.06%  
ˆEuro Car Miami LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       4/29/2026       62.5       57.5       58.1       0.02%  
ˆHard Exercise Works Winter Park LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/29/2026       40.7       37.5       31.9       0.01%  
ˆLoriet LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       4/29/2026       7.5       6.9       5.9       —%  
ˆLa Nopalera Mexicano 2, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/29/2026       125.5       97.2       98.3       0.04%  
ˆInner Beauty Salon and Suite
LLC
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/28/2041       65.0       63.8       66.4       0.03%  
ˆAtlantic Restaurant Associates
LLC
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/28/2041       262.5       257.6       265.5       0.11%  
ˆCostume World Inc     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       4/28/2041       1,250.0       1,228.8       1,291.4       0.52%  
ˆNorth American Manufacturing Company     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/28/2026       160.0       147.0       148.7       0.06%  
ˆPecos Inn LLC d/b/a Econo
Lodge
    Accommodation       Term Loan       Prime plus 2.75%       4/28/2041       677.5       662.7       682.7       0.27%  
ˆShepherd Appraisal Services LLC d/b/a Property Damage Appraisers of Oklahoma     Real Estate       Term Loan       Prime plus 2.75%       4/28/2026       9.0       8.3       7.0       —%  
ˆKnowledge First Inc d/b/a Magic Years of Learning     Social Assistance       Term Loan       Prime plus 2.75%       4/27/2026       80.0       73.5       69.9       0.03%  
ˆGreen Country Filter Manufacturing LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       4/27/2026       84.2       78.0       68.4       0.03%  
ˆAccent Comfort Services, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/26/2026       90.0       82.7       70.5       0.03%  
ˆHomecare Casa Rhoda 123 Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2%       4/26/2041       675.0       660.9       648.5       0.26%  
ˆMcIntosh Trail Management Services Organization Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/22/2041       425.0       417.1       438.3       0.18%  
ˆAutomotive Core Recycling, LLC and 828 Old Colony Road, LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       4/22/2041       250.0       245.3       236.8       0.09%  
ˆAAA Mill Direct, Inc. d/b/a Carpet Mill Outlets     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       4/21/2026       7.9       7.2       7.3       —%  
ˆJande Graphics LLC d/b/a FastSigns #103201     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/21/2026       56.0       51.5       43.9       0.02%  
ˆMiguel Fernando Borda, P.A. d/b/a BGR Dental     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/15/2026       22.5       20.7       18.2       0.01%  
ˆLE & JS d/b/a Laredo Mercado Y Carniceria     Food and Beverage Stores       Term Loan       Prime plus 2.75%       4/13/2026       20.0       18.7       15.9       0.01%  
ˆSushiya Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/12/2026       87.5       80.5       71.6       0.03%  
ˆSierra Foothill Cremation & Funeral Service, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/7/2026       53.0       48.8       41.6       0.02%  
ˆWaterfalls Quick Lube LLC and Veracruz Shabo LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/6/2041       271.3       268.2       274.1       0.11%  

 
 
See accompanying notes to these consolidated financial statements.

F-181


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆKNS Early Learning Academy
LLC
    Social Assistance       Term Loan       Prime plus 2.75%       4/6/2041     $ 51.0     $ 50.1     $ 49.9       0.02%  
ˆCameo Carter, MD A Professional Corporation d/b/a The Garden Pediatric Group     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/31/2026       75.0       68.4       58.3       0.02%  
ˆDuke's Cleaners Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/31/2026       47.0       42.9       39.9       0.02%  
ˆChristian Soderquist d/b/a Soderquist Plumbing and Heating LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/31/2041       56.8       55.6       58.3       0.02%  
ˆFarhad Brothers LLC d/b/a Lulu's Pizzeria & Family Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/31/2026       66.8       57.2       48.7       0.02%  
ˆVehicle Safety Supply LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/31/2026       22.5       20.5       17.5       0.01%  
ˆMen of Steel Enterprises LLC and Vogelbacher Properties LLC     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       3/31/2041       393.5       385.6       366.4       0.15%  
ˆGill Express Inc and Blue Speed LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/31/2041       518.0       507.6       510.5       0.20%  
ˆDana A. Farley d/b/a Independent Cabinets     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       3/31/2041       67.5       66.1       69.5       0.03%  
ˆWyldewood Cellars, Inc.     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       3/30/2041       986.8       978.4       948.3       0.38%  
ˆNOSO Development, LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       3/30/2026       187.5       171.1       145.7       0.06%  
ˆGordon Rogers and Heidi Rogers d/b/a Stone House Motor Inn     Accommodation       Term Loan       Prime plus 2.75%       3/30/2026       22.5       20.8       21.0       0.01%  
ˆTom Sawyer Country Restaurant LLC and AM 3208 LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/30/2041       257.5       252.7       261.3       0.10%  
ˆBeale 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       85.5       75.0       0.03%  
ˆMTS Car Service LLC     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       3/30/2026       10.5       9.6       8.2       —%  
ˆBarrocas Gym LLC d/b/a Snap Fitness     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/29/2026       22.5       19.9       18.2       0.01%  
ˆAtlantis of Daytona LLC and Pierre Mamane and Eva Mamane     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2%       3/29/2041       525.0       504.5       504.8       0.20%  
ˆLust for Life Footwear, LLC     Leather and Allied Product Manufacturing       Term Loan       Prime plus 2.75%       3/29/2026       375.0       342.2       291.4       0.12%  
ˆVinmar Inc. d/b/a Locanda
Portofino
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/29/2026       81.3       74.1       63.1       0.03%  
ˆMarathon Engineering
Corporation
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/28/2041       45.0       44.1       45.2       0.02%  
ˆReNew Interior Surface Cleaning LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/28/2026       12.4       11.3       11.2       —%  
ˆPHCDC1 LLC d/b/a Quarter + Glory and Public House Collective, Corp.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/28/2026       50.0       45.6       41.3       0.02%  
ˆRCB Enterprises, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/25/2026       56.2       51.3       43.7       0.02%  
ˆRevolution Physical Therapy LLC d/b/a Apex Network Physical Therapy     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/25/2026       22.5       20.8       18.2       0.01%  
ˆExcel RP Inc     Machinery Manufacturing       Term Loan       Prime plus 2.75%       3/25/2026       125.0       114.1       103.8       0.04%  
ˆActKnowledge, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/24/2026       125.0       114.1       115.3       0.05%  

 
 
See accompanying notes to these consolidated financial statements.

F-182


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLowgap Grocery & Grill LLC     General Merchandise Stores       Term Loan       Prime plus 2.75%       3/24/2041     $ 167.5     $ 164.1     $ 172.4       0.07%  
ˆInternational Construction Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       3/24/2041       50.0       49.0       48.9       0.02%  
ˆFlooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/24/2026       50.0       46.3       45.5       0.02%  
ˆActon 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       489.0       478.1       0.19%  
ˆMagnation Corporation and Misha Family Trust     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/22/2041       101.3       99.5       104.5       0.04%  
ˆgrowth.period LLC and Potomac Recruiting LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/21/2026       156.3       142.6       121.4       0.05%  
ˆPrecious Care LLC and Precious Care Management LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/21/2026       557.5       509.6       437.1       0.17%  
ˆMedia Capital Partners, Inc     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       3/21/2026       22.5       20.8       17.7       0.01%  
ˆPro Tech Technology LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       3/18/2026       7.5       6.8       5.8       —%  
ˆTaylors Zinn Enterprises Inc d/b/a Eons Auto Care Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/18/2041       80.8       79.1       82.2       0.03%  
ˆERT 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       1,231.7       0.49%  
ˆKekoa Enterprises Inc d/b/a Signarama Sandy     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/18/2026       49.5       45.2       38.5       0.02%  
ˆMariam Diner Inc d/b/a Country Kitchen Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/18/2026       52.5       47.9       40.8       0.02%  
ˆBrian T Rice d/b/a BD Logging     Forestry and Logging       Term Loan       Prime plus 2.75%       3/17/2026       15.8       14.4       13.1       0.01%  
ˆAuto and Property Insurance Solutions     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       3/16/2026       16.4       14.8       12.6       0.01%  
ˆDemand Printing Solutions Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       3/16/2026       21.8       19.9       19.0       0.01%  
ˆLAN Doctors Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/16/2026       55.0       50.2       50.8       0.02%  
ˆEvergreen Pallet LLC and Evergreen Recycle LLC     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       3/16/2026       1,039.3       948.8       858.2       0.34%  
ˆK Soles Corp d/b/a Max Collections     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/16/2026       22.5       20.5       17.5       0.01%  
ˆR & D Enterprises Inc d/b/a My Pool Man     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/15/2026       50.0       45.6       38.9       0.02%  
ˆHEWZ, LLC d/b/a Hard Exercise Works     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/14/2026       22.5       20.5       17.5       0.01%  
ˆMustafa Inc and Raouf Properties LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/14/2041       75.0       73.5       76.1       0.03%  
ˆCountry Paint and Hardware Inc     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       3/11/2026       87.4       79.7       69.5       0.03%  
ˆWilban LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/11/2026       105.0       96.1       92.2       0.04%  
ˆABCs & 123s Infant and Child Care Center LP     Social Assistance       Term Loan       Prime plus 2.75%       3/11/2026       11.3       10.3       8.7       —%  
ˆAccuair Control Systems LLC d/b/a Accuair Suspension     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       3/11/2026       150.0       136.9       119.4       0.05%  

 
 
See accompanying notes to these consolidated financial statements.

F-183


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMagill Truck Line LLC and Jeff J. Ralls     Truck Transportation       Term Loan       Prime plus 2.75%       3/11/2029     $ 210.8     $ 198.0     $ 180.6       0.07%  
ˆDupre Capital LLC d/b/a
Fastsigns
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/11/2026       58.4       53.3       45.4       0.02%  
ˆFayette Computer Consulting Company     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/10/2026       22.5       20.5       18.4       0.01%  
ˆState Painting & Decorating Co., Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/10/2026       103.8       94.7       80.6       0.03%  
ˆB.P.T.M. of NV LLC and Agentis Bros., LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/9/2041       525.0       514.4       519.0       0.21%  
ˆStep Up Academy of the Arts
LLC
    Educational Services       Term Loan       Prime plus 2.75%       3/9/2026       8.0       7.3       6.2       —%  
ˆA & A Auto Care LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/9/2026       12.1       11.1       10.7       —%  
ˆFaith Summit Supply Inc d/b/a 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       20.5       18.8       0.01%  
ˆSwerve Salon LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/8/2026       79.0       72.1       61.4       0.02%  
ˆJ & W Hardwood Flooring Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/7/2026       7.5       6.8       5.8       —%  
ˆLabmates LLC and POV Holdings LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/4/2041       109.3       107.1       112.4       0.04%  
ˆHueston and Company CPA LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/4/2026       8.3       7.4       6.5       —%  
ˆAlmost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       3/3/2026       50.0       45.6       45.1       0.02%  
ˆMiles of Smiles Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/2/2026       93.5       86.9       75.8       0.03%  
ˆLiving Essentials HVAC Corp     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/28/2026       15.0       13.6       11.7       —%  
ˆConsulting Solutions, Inc. and Mark Luciani     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/28/2026       11.2       10.2       10.1       —%  
ˆDoxa Deo Inc d/b/a Luv 2 Play     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2026       105.0       99.4       87.8       0.04%  
ˆThe River Beas, LLC d/b/a Subway and Punam Singh     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2041       135.9       133.4       138.4       0.06%  
ˆPowerpits CS1, LLC d/b/a Pita
Pit
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2026       18.8       17.0       15.3       0.01%  
ˆDrug Detection Laboratories, Inc. and Minh Tran     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/28/2026       19.8       17.9       15.6       0.01%  
ˆBlackstones Hairdressing LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/23/2026       52.0       47.5       40.9       0.02%  
ˆAaradhya LLC d/b/a Market Square Laundry     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/23/2026       80.0       72.5       61.7       0.02%  
ˆR-No-Landscaping LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/19/2026       8.3       7.5       6.5       —%  
ˆBER Enterprise 332 Inc d/b/a Edible Arrangements     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/19/2026       22.5       20.4       17.6       0.01%  
ˆR & K Contracting Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/18/2026       15.8       14.4       14.1       0.01%  
ˆPacific Coast Medical Group
LLC
    Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/17/2026       245.0       222.0       224.3       0.09%  
ˆB for Blonde, LLC d/b/a Blo Blow Dry Bar     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/12/2026       62.0       56.9       48.5       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-184


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆGilmore Heights Dental Holdings, LTD and Chas Rob LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/12/2029     $ 310.3     $ 290.4     $ 269.1       0.11%  
ˆEi3 Corporation     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/12/2026       326.9       296.1       299.3       0.12%  
ˆJersey Shore Marina & Boat Sales, Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/12/2041       625.0       612.3       643.2       0.26%  
ˆBase USA, Inc.     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       2/2/2026       50.0       45.4       45.8       0.02%  
ˆNowatzke Service Center Inc d/b/a Nowatzke Truck and Trailer     Repair and Maintenance       Term Loan       Prime plus 2.75%       1/29/2026       105.0       97.4       98.5       0.04%  
ˆZouk Ltd d/b/a Palma     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/29/2026       22.5       20.3       20.5       0.01%  
ˆSuzyQue's LLC d/b/a SuzyQue's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/28/2026       22.5       20.3       20.5       0.01%  
ˆTammy Lavertue     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       1/28/2026       11.3       10.1       9.9       —%  
ˆWildflour Bakery & Cafe LLC     Social Assistance       Term Loan       Prime plus 2.75%       1/28/2026       62.5       56.2       55.7       0.02%  
ˆNew Image Building Services,
Inc.
    Administrative and Support Services       Term Loan       Prime plus 2.75%       1/19/2026       83.1       74.9       67.2       0.03%  
ˆOak Tree Storage LLC     Other Information Services       Term Loan       Prime plus 2.75%       1/19/2026       78.8       70.8       61.6       0.02%  
ˆGendron Funeral and Cremation Services, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/11/2041       112.5       108.4       113.9       0.05%  
ˆDolarian Realty LLC and OV's Restaurant Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/5/2041       67.8       66.3       69.6       0.03%  
ˆLemonberry Food Stores Inc d/b/a Lemonberry Frozen Yogurt     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/29/2025       112.5       100.5       94.4       0.04%  
ˆMCF Forte LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/29/2025       18.8       16.7       15.5       0.01%  
ˆBright Dialysis LLC and Ft Pierce Kidney Care LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/28/2025       1,250.0       1,116.3       1,025.4       0.41%  
ˆPanditos LLC d/b/a White Lotus Home     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       12/28/2025       15.9       14.2       13.0       0.01%  
ˆV2 Tango LLC d/b/a Palette 22     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/23/2025       250.0       223.3       208.9       0.08%  
ˆ800 on the Trax LLC and Matrix Z LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       12/23/2040       240.0       235.1       244.5       0.10%  
ˆOptima Health Care Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/23/2025       62.5       55.8       56.9       0.02%  
ˆRidge Road Equestrian LLC d/b/a Ricochet Ridge Ranch Inc     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/23/2040       102.5       99.9       104.4       0.04%  
ˆJoyce Outdoor Advertising Chicago LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/22/2040       300.0       294.4       305.0       0.12%  
ˆThe LAX Shop Inc     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       12/22/2025       125.0       87.3       89.1       0.04%  
ˆPremier Athletic Center of Ohio Inc. and Gates Investments     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/22/2028       882.0       816.5       841.9       0.34%  
ˆHattingh Incorporated d/b/a Prosthetic Care Facility     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/21/2025       18.0       16.1       15.3       0.01%  
ˆG.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC and ANA     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/18/2040       1,025.0       999.2       1,065.3       0.43%  

 
 
See accompanying notes to these consolidated financial statements.

F-185


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTrip Consultants U.S.A. Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/18/2025     $ 175.0     $ 156.3     $ 143.2       0.06%  
ˆJay Kevin Gremillion d/b/a Dino Smiles Children's Cosmetic Dentistry     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/18/2025       73.0       66.9       62.5       0.02%  
ˆAccent Tag and Label Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/18/2040       665.8       646.3       674.0       0.27%  
ˆLabmates LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       12/18/2040       162.5       158.4       168.9       0.07%  
ˆAbbondanza Market LLC d/b/a Hampton Falls Village Market     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/18/2025       73.7       60.1       56.3       0.02%  
ˆCapital Scrap Metal LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/18/2025       36.0       32.2       29.8       0.01%  
ˆMustafa Inc d/b/a Adiba Grocery     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/17/2025       103.8       93.1       94.9       0.04%  
ˆLearning Skills LLC and Christopher Shrope     Educational Services       Term Loan       Prime plus 2.75%       12/17/2025       10.8       9.6       8.8       —%  
ˆNew York Home Health Care Equipment, LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/16/2025       875.0       783.8       791.7       0.32%  
ˆMoments to Remember USA LLC d/b/a Retain Loyalty     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       12/16/2025       75.0       67.1       65.6       0.03%  
ˆSwalm 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       366.8       387.5       0.15%  
ˆAbitino's JFK LLC d/b/a
Abitino's
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2022       125.0       106.0       99.8       0.04%  
ˆJAG Unit 1, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2025       250.0       223.3       204.6       0.08%  
ˆSDA Holdings LLC and Les Cheveux Salon Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/15/2040       428.8       418.9       432.2       0.17%  
ˆEvans & Paul LLC and E&P Holdings I LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       12/15/2025       125.0       111.6       104.6       0.04%  
ˆBasista Family Limited Partnership and UPE, Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/14/2040       342.5       333.9       347.2       0.14%  
ˆDC Enterprises Ltd. d/b/a Lakeview True Value     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       12/14/2025       22.5       20.1       19.9       0.01%  
ˆTri-State Remodeling & Investments, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/11/2025       15.9       14.2       14.2       0.01%  
ˆAGR Foodmart Inc d/b/a Nashua Road Mobil     Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2025       22.5       20.1       19.9       0.01%  
ˆAlexandra Afentoulides d/b/a Vi's Pizza Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/11/2040       46.3       45.1       48.1       0.02%  
ˆCares, Inc d/b/a Dumpling Grounds Day Care Center     Social Assistance       Term Loan       Prime plus 2.75%       12/10/2025       7.5       6.7       6.8       —%  
ˆCustom Exteriors, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/9/2025       100.0       89.3       83.8       0.03%  
ˆSushiya, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/8/2025       108.7       97.1       91.4       0.04%  
ˆMy Jewels, LLC d/b/a The UPS Store #6712     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/7/2025       56.3       31.6       29.0       0.01%  
ˆFood & Fuel Company LLC d/b/a Lowery Food Mart     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/4/2040       122.5       119.4       127.3       0.05%  
ˆBlue Ox Trucking Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       12/4/2025       12.3       6.2       6.3       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-186


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/4/2040     $ 502.5     $ 490.4     $ 514.7       0.21%  
ˆAmerican Campgrounds LLC d/b/a Whit's End Campground     Accommodation       Term Loan       Prime plus 2.75%       12/4/2040       293.0       285.6       300.2       0.12%  
ˆTariq, LLC d/b/a 76 Food Mart     Gasoline Stations       Term Loan       Prime plus 2.75%       12/2/2040       375.0       365.6       384.0       0.15%  
ˆ401 JJS, Corp and G. Randazzo's Trattoria Corporation     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/1/2040       52.7       51.7       53.8       0.02%  
ˆDelta Aggregate, LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       11/30/2025       100.0       91.1       92.9       0.04%  
ˆBlock and Grinder LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       200.0       56.6       57.7       0.02%  
ˆHurshell Leon Dutton d/b/a High Jump Party Rentals     Rental and Leasing Services       Term Loan       Prime plus 2.75%       11/30/2025       17.6       15.5       15.8       0.01%  
ˆJapp Business Inc d/b/a Pick and Eat and Japp Drink Corp.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       125.0       110.8       105.1       0.04%  
ˆSmokeyard Inc d/b/a Smokeyard BBQ and Chop Shop     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/30/2025       125.0       110.8       103.0       0.04%  
ˆState Painting and Decorating Co Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/25/2025       100.0       64.1       58.7       0.02%  
ˆMedeiros Holdings Inc d/b/a Outdoor Lighting Perspectives of the Triad     Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       11/25/2025       22.5       19.8       18.2       0.01%  
ˆDWeb Studio, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/25/2025       11.3       10.0       9.1       —%  
ˆPlay and Learn Child Care and School Inc     Social Assistance       Term Loan       Prime plus 2.75%       11/23/2025       11.1       9.8       10.0       —%  
ˆSambella Holdings, LLC and Strike Zone Entertainment Center LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/23/2040       750.0       740.3       785.2       0.31%  
ˆHaven Hospitality Group Inc. d/b/a Haven Gastropub     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/20/2025       132.5       117.4       109.0       0.04%  
ˆCNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/20/2040       244.4       238.1       239.1       0.10%  
ˆRonny Ramirez RX Corp d/b/a Naturxheal Family Pharmacy     Health and Personal Care Stores       Term Loan       Prime plus 2.75%       11/20/2025       89.0       80.0       74.2       0.03%  
ˆS.B.B. Enterprises Inc d/b/a Williamston Hardware     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/19/2040       108.8       105.6       106.3       0.04%  
ˆKey Pix Productions Inc. d/b/a Air Bud Entertainment     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       11/18/2040       839.8       817.3       871.4       0.35%  
ˆRDT Enterprises, L.L.C.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/12/2025       22.5       19.9       19.6       0.01%  
ˆE.S.F.P. LLC d/b/a Volusia Van and Storage     Truck Transportation       Term Loan       Prime plus 2.75%       11/11/2025       91.3       78.9       73.5       0.03%  
ˆGreen Life Lawnscapes LLC d/b/a Green Life Lawn Care     Administrative and Support Services       Term Loan       Prime plus 2.75%       11/6/2025       127.3       112.9       113.5       0.05%  
ˆJumbomarkets Inc d/b/a Rines Jumbomarkets     Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/4/2025       306.2       269.4       272.3       0.11%  
ˆBisson Transportation Inc d/b/a I & R Associates and Document Secutiry     Truck Transportation       Term Loan       Prime plus 2.75%       10/30/2025       22.5       19.8       19.4       0.01%  
ˆL.M. Jury Enterprises, Inc d/b/a Midwest Monograms     Textile Product Mills       Term Loan       Prime plus 2.75%       10/28/2025       77.0       67.7       62.9       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-187


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTop Cat Ready Mix, LLC, Ples Investments LLC, and Pappy's Sand and Gravel     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/28/2025     $ 711.3     $ 625.7     $ 588.1       0.24%  
ˆFinancial Network Recovery     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/26/2025       40.0       35.2       32.3       0.01%  
ˆWindsor Direct Distribution LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       10/26/2025       14.2       12.5       11.5       —%  
ˆInsurance Fire & Water Restorations, LLC     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       10/23/2025       22.5       19.8       19.6       0.01%  
ˆJacksonville Beauty Institute Inc. d/b/a Beauty Institute's     Educational Services       Term Loan       Prime plus 2.75%       10/23/2025       50.0       44.0       40.3       0.02%  
ˆTannehill Enterprises Inc d/b/a Hobbytown USA Folsom     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       10/14/2025       87.4       76.9       70.4       0.03%  
ˆADMO Inc d/b/a Mid States Equipment     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       10/8/2025       22.5       19.8       18.4       0.01%  
ˆSCJEN Management Inc d/b/a Bowl of Heaven     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2025       71.2       62.9       57.5       0.02%  
ˆNaeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/30/2025       125.0       109.1       99.9       0.04%  
ˆAccent Homes Services LLC d/b/a Benjamin Franklin Plumbing of Kansas City     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/30/2028       66.5       60.6       61.0       0.02%  
ˆRecycling Consultants, Inc. and Prairie State Salvage and Recycling Inc     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/30/2027       767.5       691.5       663.3       0.27%  
ˆBarub Realty LLC and Barub LLC d/b/a Woodlawn Cabinets     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       9/30/2040       143.0       138.8       147.6       0.06%  
ˆBinky's Vapes LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/30/2025       22.5       19.6       18.0       0.01%  
ˆBat Bridge Investments Inc d/b/a Kalologie 360 Spa     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/30/2025       85.5       76.1       69.7       0.03%  
ˆR.H. Hummer Jr., Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       9/30/2025       375.0       343.6       340.7       0.14%  
ˆJoyce Outdoor Advertising LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/29/2040       234.8       229.0       241.9       0.10%  
ˆGreensward of Marco Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/28/2040       87.5       84.9       87.9       0.04%  
ˆRIM Investments LLC and RIM Architects LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/28/2040       399.0       387.1       399.7       0.16%  
ˆThe Grasso Companies LLC and Grasso Pavement Maintenance LLC     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       9/28/2025       518.7       449.8       458.4       0.18%  
ˆSouth Towne Dental Center, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025       50.0       43.8       44.6       0.02%  
ˆSandlot Ventures LLC and Sandbox Ventures LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/25/2040       442.5       430.0       439.9       0.18%  
ˆYachting Solutions LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/25/2040       962.5       933.7       954.1       0.38%  
ˆPrestigious LifeCare for Seniors LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025       9.8       8.6       8.3       —%  
ˆDaniel W. Stark d/b/a Mountain Valley Lodge and RV Park     Accommodation       Term Loan       Prime plus 2.75%       9/25/2040       13.5       13.1       14.0       0.01%  
ˆSt Lawrence Hotel Corp and Oheka Catering Inc d/b/a Quality Inn     Accommodation       Term Loan       Prime plus 2.75%       9/24/2040       625.0       606.3       631.7       0.25%  
ˆJ.R. Wheeler Corporation d/b/a Structurz Exhibits and Graphics     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/24/2025       21.0       18.4       18.7       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-188


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆHagerstown Muffler, Inc. and JMS Muffler, Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/24/2040     $ 327.5     $ 317.7     $ 338.5       0.14%  
ˆRutledge Enterprises Inc d/b/a BLC Property Management     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/23/2040       62.5       60.1       62.7       0.03%  
ˆFinish Strong Inc d/b/a FASTSIGNS St Peters     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/23/2025       50.0       43.6       39.9       0.02%  
ˆJ3K LLC d/b/a Ronan True Value Hardware     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       9/23/2025       152.5       133.1       121.9       0.05%  
ˆNova Solutions Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/22/2040       320.0       310.4       323.6       0.13%  
ˆPine Belt Wood Products LLC     Forestry and Logging       Term Loan       Prime plus 2.75%       9/22/2040       163.7       158.8       157.4       0.06%  
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/21/2025       50.0       43.7       41.4       0.02%  
ˆIIoka Inc d/b/a New Cloud Networks     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/21/2025       665.0       583.2       533.9       0.21%  
ˆVanderhoof LLC d/b/a Soxfords     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/18/2025       15.9       13.9       12.7       0.01%  
ˆMiJoy Inc d/b/a Imo's Pizza     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/18/2025       8.2       7.2       6.6       —%  
ˆNaeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/17/2025       125.0       109.1       99.9       0.04%  
ˆImport Car Connection Inc d/b/a Car Connection     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/16/2040       407.5       395.3       418.1       0.17%  
ˆFirstVitals Health and Wellness
Inc
    Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/15/2025       150.0       130.9       119.8       0.05%  
ˆAlmost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       9/11/2025       62.5       54.6       55.3       0.02%  
ˆVeliu LLC d/b/a FASTSIGNS #15901     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/10/2025       50.0       44.2       41.2       0.02%  
ˆB and A Friction Materials Inc     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/9/2025       102.5       87.7       80.3       0.03%  
ˆGardner'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       135.8       144.7       0.06%  
ˆAIG Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/4/2040       363.8       352.9       357.7       0.14%  
ˆEmpower Autism Academy     Social Assistance       Term Loan       Prime plus 2.75%       9/4/2040       685.0       664.5       708.1       0.28%  
ˆHigher Grounds Community Coffeehouse, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/2/2025       8.3       7.2       6.8       —%  
ˆDelray Scrap Recycling LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       22.5       19.3       17.6       0.01%  
ˆThe Camera House Inc     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       1,250.0       1,082.6       1,046.2       0.42%  
ˆLAN Doctors Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/28/2025       81.2       70.4       67.6       0.03%  
ˆElite Institute LLC d/b/a Huntington Learning Center     Educational Services       Term Loan       Prime plus 2.75%       8/28/2025       15.0       13.2       12.0       —%  
ˆZephyr Seven Series LLC d/b/a
18/8 Fine Men's Salon
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       8/28/2025       81.3       72.9       67.8       0.03%  
ˆJ and K Fitness L.L.C. d/b/a Physiques Womens Fitness Center     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2041       93.8       91.9       96.7       0.04%  
ˆTrading Group 3 Inc     Nonstore Retailers       Term Loan       Prime plus 2.75%       8/28/2025       50.0       44.0       40.2       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-189


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆB and J Catering Inc d/b/a Culinary Solutions     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/27/2040     $ 547.5     $ 535.4     $ 548.9       0.22%  
ˆGod Be Glorified Inc d/b/a GBG Inc     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       8/20/2025       53.0       45.9       42.0       0.02%  
ˆ3000 CSI Property LLC and Consulting Solutions Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/20/2040       137.5       133.2       140.7       0.06%  
ˆGDP Gourmet LLC d/b/a Joe and John's Pizza Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/19/2040       145.0       140.4       145.7       0.06%  
ˆGold Jet Corp.     Couriers and Messengers       Term Loan       Prime plus 2.75%       8/14/2025       68.3       62.4       59.9       0.02%  
ˆSKJ Inc d/b/a Subway     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/13/2025       84.8       73.4       67.9       0.03%  
ˆLP Industries Inc d/b/a
Childforms
    Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025       125.0       108.7       106.4       0.04%  
ˆAdvanced Machine & Technology, Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025       90.3       78.1       75.8       0.03%  
ˆPauley Tree and Lawn Care Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       7/28/2025       65.8       57.2       54.4       0.02%  
ˆBeale 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       56.9       53.5       0.02%  
ˆForever & Always of Naples Inc d/b/a Island Animal Hospital     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       7/24/2025       107.5       84.8       82.0       0.03%  
ˆSmart Artists Inc.     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       7/23/2025       22.5       19.3       17.7       0.01%  
ˆPooh's Corner Realty LLC and Pooh's Corner Inc     Social Assistance       Term Loan       Prime plus 2.75%       7/23/2040       103.8       100.5       106.6       0.04%  
ˆFree Ion Advisors LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       7/21/2025       64.3       55.2       50.5       0.02%  
ˆMurrayville Donuts, Inc d/b/a Dunkin' Donuts     Food and Beverage Stores       Term Loan       Prime plus 2.75%       7/15/2040       344.5       336.9       345.2       0.14%  
ˆUnion 2 LLC d/b/a The Standard     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/10/2025       91.5       82.9       80.3       0.03%  
ˆThrifty Market, Inc. d/b/a Thrifty Foods     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/30/2030       262.5       240.7       231.1       0.09%  
ˆAll About Smiles P A     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       237.7       229.4       239.5       0.10%  
ˆDanny V, LLC d/b/a Hugo's Taproom     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2040       54.0       47.2       47.5       0.02%  
ˆAnglin Cultured Stone Products LLC d/b/a Anglin Construction     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2025       281.8       240.1       226.6       0.09%  
ˆJonathan E Nichols and Nichols Fire and Security LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/30/2025       75.0       63.9       63.3       0.03%  
ˆBJ'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       205.1       213.7       0.09%  
ˆThe Smile Place LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       283.9       274.0       286.0       0.11%  
ˆMyclean Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/29/2025       15.9       13.6       12.4       —%  
ˆSummit Beverage Group LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2030       291.9       268.0       260.9       0.10%  
ˆAdvanced Skincare Medcenter Inc d/b/a Advanced Skincare Surgery     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/29/2025       337.5       287.6       266.4       0.11%  

 
 
See accompanying notes to these consolidated financial statements.

F-190


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆCEM Autobody LLC d/b/a Dawn's Autobody     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/26/2040     $ 135.5     $ 130.8     $ 134.5       0.05%  
ˆTJU-DGT Inc d/b/a The Lorenz Cafe     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/26/2029       20.6       18.7       19.3       0.01%  
ˆJihan Inc d/b/a ARCO AM/PM and Diana Inc d/b/a Diana's Recycling     Gasoline Stations       Term Loan       Prime plus 2.75%       6/26/2040       380.0       366.8       380.1       0.15%  
ˆSofRep, Inc d/b/a Force 12 Media     Other Information Services       Term Loan       Prime plus 2.75%       6/26/2025       66.3       56.5       51.6       0.02%  
ˆE & G Enterprises LLC d/b/a Comfort Keepers     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/26/2025       22.5       19.2       17.6       0.01%  
ˆOhs Auto Body, Inc. d/b/a Ohs Body Shop     Repair and Maintenance       Term Loan       7.40%       6/25/2040       1,207.5       1,177.5       1,209.9       0.48%  
ˆWolf Enviro Interests, LLC and Enviromax Services Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/25/2040       246.5       237.9       238.2       0.10%  
ˆAmboy Group, LLC d/b/a Tommy's Moloney's     Food Manufacturing       Term Loan       Prime plus 2.75%       6/24/2025       454.0       392.3       399.5       0.16%  
ˆEvinger PA One, Inc. d/b/a Postal Annex, Falcon     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       6/24/2025       22.5       19.2       18.3       0.01%  
ˆRichards Plumbing and Heating Co., Inc. d/b/a Richards Mechanical     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/23/2040       551.7       532.6       567.1       0.23%  
ˆRJI Services, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/23/2025       22.5       19.0       17.4       0.01%  
ˆReal Help LLC d/b/a Real Help Decorative Concrete     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/22/2025       53.1       45.3       45.7       0.02%  
ˆPM Cassidy Enterprises, Inc. d/b/a Junk King     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       6/19/2025       14.9       12.7       11.6       —%  
ˆKRN Logistics, LLC, Newsome Trucking, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2025       543.5       458.7       441.8       0.18%  
ˆInverted Healthcare Staffing of Florida LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/18/2025       61.3       52.2       47.7       0.02%  
ˆFlooring 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       383.6       0.15%  
ˆAM PM Properties, LLC and AM PM Willington, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/17/2040       87.1       83.8       88.5       0.04%  
ˆNelson Sargsyan d/b/a HDA Trucking     Support Activities for Transportation       Term Loan       Prime plus 2.75%       6/16/2025       130.5       111.2       101.7       0.04%  
ˆMirage Plastering Inc and Mpire LLC and Mpire II LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/12/2040       338.8       133.9       131.0       0.05%  
ˆBizzare Foods Inc d/b/a Trooper Foods     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/12/2025       125.0       102.3       93.5       0.04%  
ˆAnturio Marketing Inc d/b/a Logic Consulting     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/12/2040       290.3       280.2       298.3       0.12%  
ˆEldredge Tavern LLC d/b/a Gonyea's Tavern     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/8/2040       56.3       54.3       57.8       0.02%  
ˆNicor LLC d/b/a Fibrenew Sacramento     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/5/2022       13.8       10.6       9.6       —%  
ˆChitalian Fratelli LLC d/b/a Francesca Brick Oven Pizza and Pasta     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/5/2025       16.0       13.4       12.2       —%  
ˆViAr Visual Communications,
Inc. d/b/a Fastsigns 281701
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/5/2025       62.0       52.8       49.1       0.02%  
ˆVideo Vault & Tanning LLC and Mosaic Salon LLC     Rental and Leasing Services       Term Loan       Prime plus 2.75%       6/4/2040       90.5       87.5       93.2       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-191


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMedworxs LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/3/2025     $ 125.0     $ 106.5     $ 98.0       0.04%  
ˆDTM Parts Supply Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/2/2025       62.7       54.8       50.1       0.02%  
ˆXCESSIVE THROTTLE, INC d/b/a Jake's Roadhouse     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/29/2025       8.2       7.0       6.4       —%  
ˆVillela CPA PL     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/27/2025       9.0       7.6       7.1       —%  
ˆGod is Good LLC d/b/a BurgerFi     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/27/2025       67.2       12.6       12.8       0.01%  
ˆDouglas Posey and Sally Watkinson d/b/a Audrey's Farmhouse     Accommodation       Term Loan       Prime plus 2.75%       5/20/2040       174.1       167.8       176.1       0.07%  
ˆPen Tex Inc d/b/a The UPS Store     Administrative and Support Services       Term Loan       Prime plus 2.75%       5/20/2025       22.0       18.6       17.0       0.01%  
ˆCapstone Pediatrics PLLC and Capstone Healthcare Consulting LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/15/2025       717.3       609.1       566.8       0.23%  
ˆ15 McArdle LLC and No Other Impressions Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/15/2040       257.1       247.8       251.6       0.10%  
ˆE-Z Box Storage, Inc.     Real Estate       Term Loan       Prime plus 2.75%       5/11/2025       89.3       69.9       71.2       0.03%  
ˆGuard Dogs MFS LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/8/2025       65.0       55.0       50.6       0.02%  
ˆGeorge S Cochran DDS Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/7/2025       130.0       109.9       100.7       0.04%  
ˆSouth 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       163.2       173.8       0.07%  
ˆMatthew Taylor and Landon Farm LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/4/2040       100.0       97.0       95.6       0.04%  
ˆCares Inc d/b/a Dumpling Grounds Day Care Center     Social Assistance       Term Loan       Prime plus 2.75%       5/1/2040       81.9       78.1       83.1       0.03%  
ˆOrchid Enterprises Inc d/b/a Assisting Hands of Sussex County     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/24/2025       15.0       12.6       11.5       —%  
ˆRagazza Restaurant Group, Inc.
d/b/a Bambolina
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/21/2025       22.5       18.9       17.8       0.01%  
ˆDiamond Solutions LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       4/21/2025       22.5       18.1       16.6       0.01%  
ˆGiacchino Maritime Consultants
Inc
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/17/2025       22.5       18.9       17.3       0.01%  
ˆSound Coaching Inc     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       4/14/2025       44.4       37.2       34.1       0.01%  
ˆCarolina Beefs, LLC d/b/a Beef O'Brady's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/13/2025       19.5       16.5       15.1       0.01%  
ˆFaramarz Nikourazm d/b/a Car Clinic Center     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/3/2040       73.8       70.8       73.2       0.03%  
ˆAdvance Case Parts RE Holdings LLC and Advance Case Parts
Inc
    Repair and Maintenance       Term Loan       Prime plus 2.75%       3/31/2040       758.3       708.9       715.5       0.29%  
ˆT and B Boots Inc d/b/a Takken's Shoes     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       3/31/2025       807.8       130.3       132.6       0.05%  
ˆHAVANA CENTRAL NJ1, LLC d/b/a Havana Central     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/31/2025       250.0       218.9       222.1       0.09%  

 
 
See accompanying notes to these consolidated financial statements.

F-192


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMid-South Lumber Co. of Northwest Florida, Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/31/2040     $ 428.8     $ 411.7     $ 413.5       0.17%  
ˆCopper Beech Financial Group
LLC
    Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       3/30/2025       125.0       103.9       100.3       0.04%  
ˆDelta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       3/30/2025       90.0       79.5       80.9       0.03%  
ˆSunset Marine Resort LLC and GoXpeditions LLC     Accommodation       Term Loan       Prime plus 2.75%       3/27/2040       301.8       289.8       308.4       0.12%  
ˆForesite Realty Partners LLC and Foresite Real Estate Holdings LLC     Real Estate       Term Loan       Prime plus 2.75%       3/27/2025       1,238.2       1,029.6       940.9       0.38%  
ˆShellhorn and Hill Inc d/b/a Total Fleet Service     Nonstore Retailers       Term Loan       Prime plus 2.75%       3/27/2040       1,040.3       995.1       999.4       0.40%  
ˆShorr Enterprises Inc d/b/a New Design Furniture Manufacturers     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       3/27/2025       106.5       88.6       86.4       0.03%  
ˆGeo Los Angeles LLC d/b/a Geo Film Group     Rental and Leasing Services       Term Loan       Prime plus 2.75%       3/26/2025       130.0       108.2       105.0       0.04%  
ˆJoyce 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       51.9       54.8       0.02%  
ˆZero-In Media Inc     Data Processing, Hosting, and Related Services       Term Loan       Prime plus 2.75%       3/25/2025       22.5       18.7       17.1       0.01%  
ˆCarpet 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       777.9       825.0       0.33%  
ˆLoriet LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/24/2025       12.0       10.0       9.1       —%  
ˆShelton Incorporated d/b/a Mrs. Winners     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/20/2040       112.5       108.0       114.8       0.05%  
ˆJaymie Hazard d/b/a Indigo Hair Studio and Day Spa     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/20/2040       42.9       41.3       42.6       0.02%  
ˆR & R Security and Investigations Inc d/b/a Pardners Lake Buchanan     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/19/2040       85.4       82.1       87.3       0.03%  
ˆMMS Realty, LLC and Molecular MS Diagnostics LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/18/2040       160.7       154.4       158.4       0.06%  
ˆRoyal Crest Motors LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/16/2040       91.2       87.6       90.9       0.04%  
ˆBND Sebastian Limited Liability Company and Sebastian Fitness     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/16/2040       172.5       165.7       173.6       0.07%  
ˆDouglas Printy Motorsports, Inc. d/b/a Blackburn Trike     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       3/9/2040       191.8       184.2       189.0       0.08%  
ˆLuigi'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       9.4       9.5       —%  
ˆBaystate Firearms and Training, LLC     Educational Services       Term Loan       Prime plus 2.75%       2/27/2025       63.4       52.1       48.0       0.02%  
ˆCalhoun Satellite Communications Inc and Transmission Solutions Group     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/27/2025       952.8       811.7       764.6       0.31%  
ˆKingseal LLC d/b/a Desoto Health and Rehab Center     Nursing and Residential Care Facilities       Term Loan       Prime plus 2.75%       2/26/2040       1,250.0       1,198.4       1,275.4       0.51%  
ˆPace Motor Lines, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       2/26/2025       66.2       54.5       55.5       0.02%  
ˆNelson Financial Services LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/24/2025       12.4       10.3       9.4       —%  
ˆKiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       2/19/2040       61.7       59.0       60.3       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-193


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTriangle Trash LLC d/b/a Bin There Dump That     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       2/18/2025     $ 74.4     $ 61.2     $ 58.8       0.02%  
ˆSilva Realty Holdings, LLC and MF-Silva Enterprises, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/11/2040       171.6       164.6       168.4       0.07%  
ˆ740 Barry Street Realty LLC and Wild Edibles Inc     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       2/10/2040       492.5       472.1       502.5       0.20%  
ˆKostekos Inc d/b/a New York Style Pizza     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/6/2040       66.3       63.6       65.8       0.03%  
ˆDuCharme Realty LLC and DuCharme Enterprises LLC     Wood Product Manufacturing       Term Loan       Prime plus 2.75%       2/2/2040       225.1       215.8       219.2       0.09%  
ˆLimameno LLC d/b/a Sal's Italian Ristorante     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/23/2025       83.3       68.1       63.5       0.03%  
ˆPalmabak Inc d/b/a Mami Nora's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/22/2025       21.5       14.2       14.4       0.01%  
ˆJung Design Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/20/2022       8.4       6.0       5.4       —%  
ˆGrand 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       127.4       137.8       0.06%  
ˆBear Creek Entertainment, LLC d/b/a The Woods at Bear Creek     Accommodation       Term Loan       Prime plus 2.75%       12/30/2024       106.3       86.2       88.7       0.04%  
ˆEvans and Paul LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/30/2024       223.7       181.3       185.6       0.07%  
ˆFHJE Ventures LLC and Eisenreich II Inc d/b/a Breakneck Tavern     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/30/2039       245.5       235.9       250.8       0.10%  
ˆFirst Prevention and Dialysis Center, LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/30/2024       273.3       234.0       238.2       0.10%  
ˆBowlerama Inc     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       12/24/2039       1,202.5       1,150.5       1,247.1       0.50%  
ˆThe Lodin Group LLC and Lodin Health Imaging Inc d/b/a Highlands Breast     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/23/2039       530.3       506.6       537.7       0.21%  
ˆ401 JJS Corporation and G. Randazzo Corporation     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/23/2039       473.4       457.1       492.9       0.20%  
ˆThermoplastic Services Inc and Paragon Plastic Sheet, Inc     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       12/23/2039       500.0       477.7       517.8       0.21%  
ˆAtlantis of Daytona LLC and Ocean Club Sportswear Inc     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       12/23/2039       240.0       206.2       223.5       0.09%  
ˆBeale Street Blues Company-West Palm Beach, LLC d/b/a Lafayette Music Hall     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       12/22/2024       187.5       151.9       152.3       0.06%  
ˆMM and M Management Inc d/b/a Pizza Artista     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/19/2025       46.3       38.5       38.4       0.02%  
ˆB.S. Ventures LLC d/b/a Dink's Market     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/19/2039       53.8       51.3       55.7       0.02%  
ˆThe Jewelers Inc. d/b/a The Jewelers of Las Vegas     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       12/19/2024       1,250.0       1,013.6       1,005.4       0.40%  
ˆB & W Towing, LLC and Boychucks Fuel LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/17/2039       164.5       158.5       169.1       0.07%  
ˆAll 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       324.1       325.5       0.13%  
ˆKemmer LLC and Apples Tree Top Liquors LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/4/2039       138.4       132.2       140.7       0.06%  
ˆThe Red Pill Management, Inc.
d/b/a UFC Gym Matthews
    Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       11/26/2024       54.3       44.3       44.4       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-194


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTeamnewman Enterprises LLC d/b/a Newmans at 988 and John H. Newman     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/25/2039     $ 148.7     $ 142.9     $ 153.0       0.06%  
ˆDeRidder Chiropractic LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/25/2024       13.2       10.6       10.9       —%  
ˆModern Manhattan LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       11/25/2024       220.0       176.7       175.5       0.07%  
ˆLegacy Estate Planning Inc d/b/a American Casket Enterprises     Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/21/2024       42.0       33.7       33.4       0.01%  
ˆJ&D Resources, LLC d/b/a Aqua Science     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/21/2024       767.9       610.8       607.6       0.24%  
ˆDC Real LLC and DC Enterprises LTD d/b/a Lakeview True Value     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       11/20/2039       119.4       114.4       123.3       0.05%  
ˆMLM Enterprises LLC and Demand Printing Solutions Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       11/18/2024       70.5       56.6       57.5       0.02%  
ˆJEJE Realty LLC and La Familia Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/10/2039       205.7       173.5       186.4       0.07%  
ˆJoey O's LLC and Jennifer Olszewski     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/7/2024       13.1       0.7       0.7       —%  
ˆHeartland American Properties LLC and Skaggs RV Outlet LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       10/31/2039       479.0       456.0       491.0       0.20%  
ˆGolden Transaction Corporation d/b/a Bleh Sunoco     Gasoline Stations       Term Loan       Prime plus 2.75%       10/30/2039       156.7       149.3       161.2       0.06%  
ˆSeelan Inc d/b/a Candleridge Market     Gasoline Stations       Term Loan       Prime plus 2.75%       10/27/2039       90.5       86.2       92.2       0.04%  
ˆNavdeep B Martins and Busy Bubbles LLC d/b/a Wishy
Washy
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/24/2039       89.0       84.9       90.3       0.04%  
ˆOne Hour Jewelry Repair Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/14/2024       20.6       16.4       16.2       0.01%  
ˆDNT Storage and Properties LLC     Real Estate       Term Loan       Prime plus 2.75%       10/10/2039       101.7       96.9       104.6       0.04%  
ˆCapitol Waste and Recycling Services LLC     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       10/10/2024       257.8       205.2       206.4       0.08%  
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/10/2024       187.5       149.3       149.5       0.06%  
ˆReturn to Excellence, Inc. d/b/a The Waynesville Inn Golf & Spa     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       10/10/2039       1,250.0       1,204.6       1,305.8       0.52%  
ˆSmith Spinal Care Center P.C. and James C. Smith     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/8/2039       60.0       57.1       61.4       0.02%  
ˆDoctors Express Management of Central Texas LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/8/2024       105.0       73.9       75.6       0.03%  
ˆMichael Rey Jr. and Lynn J. Williams and GIG Petcare d/b/a Hickory     Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/3/2039       126.9       118.6       127.9       0.05%  
ˆSumad LLC d/b/a BrightStar Care of Encinitas     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/2/2024       92.5       42.3       43.5       0.02%  
ˆRoccos LLC and Sullo Pantalone Inc d/b/a Rocco's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/30/2039       255.8       243.0       259.4       0.10%  
ˆKeller 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       95.0       102.8       0.04%  
ˆOrange County Insurance Brokerage Inc d/b/a Beaty Insurance Agency     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       9/29/2039       325.1       309.9       335.7       0.13%  
ˆThe Woods at Bear Creek LLC and Bear Creek Entertainment LLC     Accommodation       Term Loan       Prime plus 2.75%       9/29/2039       513.3       489.6       530.4       0.21%  

 
 
See accompanying notes to these consolidated financial statements.

F-195


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆColts V LLC and Nowatzke Service Center, Inc d/b/a Nowatzke Truck & Trailer     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/26/2039     $ 601.8     $ 577.6     $ 621.5       0.25%  
ˆKeys Phase One LLC d/b/a The Grand Guesthouse     Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       736.2       699.7       753.9       0.30%  
ˆGordon E Rogers d/b/a Stonehouse Motor Inn     Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       57.5       54.6       59.2       0.02%  
ˆAuto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud     Gasoline Stations       Term Loan       Prime plus 2.75%       9/26/2024       22.5       17.7       17.7       0.01%  
ˆ6 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       457.4       0.18%  
ˆNorth Columbia LLC and Loop Liquor and Convenience Store LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/24/2039       159.2       151.3       163.0       0.07%  
ˆR A Johnson Inc d/b/a Rick Johnson Auto and Tire     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/23/2039       301.2       286.3       310.1       0.12%  
ˆAndrene's LLC d/b/a Andrene's Caribbean Soul Food Carry Out     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/23/2024       37.8       26.5       26.2       0.01%  
ˆRyan Crick and Pamela J. Crick and Crick Enterprises Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/17/2039       145.5       138.3       149.8       0.06%  
ˆModern Leather Goods Repair Shop Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/17/2024       58.7       45.9       45.3       0.02%  
ˆTavern Properties LLC and Wildwood Tavern LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/15/2039       425.0       406.6       437.4       0.17%  
ˆRDT Enterprises LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/15/2027       162.7       138.9       143.9       0.06%  
ˆAnimal Intrusion Prevention Systems Holding Company,
LLC
    Administrative and Support Services       Term Loan       Prime plus 2.75%       9/15/2024       272.5       215.8       216.6       0.09%  
ˆKW Zion, LLC and Key West Gallery Inc     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/12/2039       1,250.0       1,187.9       1,279.7       0.51%  
ˆIndy East Smiles Youth Dentistry LLC d/b/a Prime Smile East     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/11/2024       630.2       497.2       492.1       0.20%  
ˆB&P Diners LLC d/b/a Engine House Restaurant     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/10/2024       80.0       63.1       62.4       0.02%  
ˆFeel The World Inc d/b/a Xero Shoes and Invisible Shoes     Leather and Allied Product Manufacturing       Term Loan       Prime plus 2.75%       9/5/2024       51.9       40.9       40.7       0.02%  
ˆDelta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       8/28/2039       911.2       859.0       930.5       0.37%  
ˆLamjam LLC (EPC) Goldsmith Lambros Inc     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       8/27/2024       133.8       106.2       109.2       0.04%  
ˆOrange County Cleaning Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       8/27/2024       41.2       28.9       28.5       0.01%  
ˆQycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/26/2024       120.9       94.6       95.3       0.04%  
ˆAtlas Auto Body Inc d/b/a Atlas Auto Sales     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/22/2039       51.6       48.9       52.3       0.02%  
ˆKatie Senior Care LLC d/b/a Home Instead Senior Care     Social Assistance       Term Loan       Prime plus 2.75%       8/15/2024       124.3       97.1       95.9       0.04%  
ˆAlpha Preparatory Academy LLC     Social Assistance       Term Loan       Prime plus 2.75%       8/15/2039       145.2       138.3       149.8       0.06%  
ˆS&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       394.7       427.6       0.17%  

 
 
See accompanying notes to these consolidated financial statements.

F-196


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆHamer 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     $ 177.1     $ 191.8       0.08%  
ˆAlmost Home Property LLC and Almost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       8/7/2039       715.8       680.0       734.6       0.29%  
ˆAGV Enterprises LLC d/b/a Jet's Pizza #42     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/31/2024       54.8       42.5       42.2       0.02%  
ˆiFood, Inc. d/b/a Steak N Shake     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/31/2024       379.1       305.0       307.4       0.12%  
ˆ575 Columbus Avenue Holding Company, LLC and LA-ZE LLC d/b/a EST EST EST     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/30/2039       22.5       20.8       22.5       0.01%  
ˆHoneyspot Investors LLP and Pace Motor Lines Inc     Truck Transportation       Term Loan       Prime plus 2.75%       7/24/2039       150.0       142.0       153.8       0.06%  
ˆMiss 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       103.8       0.04%  
ˆAMG Holding, LLC and Stetson Automotive, Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/30/2039       208.0       197.0       213.2       0.09%  
ˆHighway Striping Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/30/2024       53.1       40.7       40.8       0.02%  
ˆHoneyspot Investors LLP and Pace Motor Lines Inc     Truck Transportation       Term Loan       Prime plus 2.75%       6/30/2039       875.3       828.7       896.7       0.36%  
ˆiFood, Inc. d/b/a Steak N Shake     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2039       629.8       596.0       631.0       0.25%  
ˆLisle Lincoln II Limited Partnership d/b/a Lisle Lanes LP     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/30/2024       100.0       76.7       78.8       0.03%  
ˆFHJE Ventures LLC and Eisenreich II Inc. d/b/a Breakneck Tavern     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/31/2018       321.7       304.2       302.6       0.12%  
ˆZinger Hardware and General Merchant Inc     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       6/26/2024       110.5       84.8       85.9       0.03%  
ˆJPM 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       142.7       0.06%  
ˆNikobella Properties LLC and JPO Inc d/b/a Village Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/25/2039       476.3       450.9       484.8       0.19%  
ˆBig Sky Plaza LLC and Strickland, Incorporated d/b/a Livingston True Value     Building Material and Garden Equipment and Supplies Dealers       Term Loan       Prime plus 2.75%       6/20/2039       233.4       220.6       236.9       0.09%  
ˆ510 ROK Realty LLC d/b/a 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       255.6       262.5       0.10%  
ˆNirvi Enterprises LLC d/b/a Howard Johnson/Knights Inn     Accommodation       Term Loan       Prime plus 2.75%       6/17/2039       920.3       869.8       941.6       0.38%  
ˆHotels of North Georgia LLC d/b/a Comfort Inn and Suites     Accommodation       Term Loan       Prime plus 2.75%       6/17/2039       837.5       791.6       856.9       0.34%  
ˆGlobal Educational Delivery Services LLC     Educational Services       Term Loan       Prime plus 2.75%       6/16/2024       60.0       46.6       47.9       0.02%  
ˆRainbow Dry Cleaners     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/13/2024       122.5       94.0       94.2       0.04%  
ˆNVR Corporation d/b/a Discount Food Mart     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/11/2039       68.3       62.5       67.7       0.03%  
ˆSico & Walsh Insurance Agency Inc and The AMS Trust     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       6/6/2039       250.0       88.5       95.8       0.04%  
ˆSujata Inc d/b/a Stop N Save Food Mart and Dhruvesh Patel     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/3/2024       22.5       17.3       17.2       0.01%  
ˆLong Island Barber + Beauty
LLC
    Educational Services       Term Loan       Prime plus 2.75%       6/2/2039       55.5       52.5       56.2       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-197


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆCJR LLC (EPC) and PowerWash Plus, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/30/2024     $ 53.0     $ 40.3     $ 41.1       0.02%  
ˆPocono Coated Products, LLC     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/30/2024       22.5       17.1       17.5       0.01%  
ˆR. A. Johnson, Inc. d/b/a Rick Johnson Auto & Tire     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       5/29/2039       943.8       890.5       963.9       0.39%  
ˆEGM Food Services Inc d/b/a
Gold Star Chili
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/29/2024       19.2       14.6       14.6       0.01%  
ˆWilton Dental Care P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/29/2024       128.1       99.3       98.4       0.04%  
ˆJonesboro Health Food Center
LLC
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       5/27/2024       60.0       45.6       45.1       0.02%  
ˆBay State Funeral Services, LLC and Riley Funeral Home Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/21/2039       134.9       127.6       138.2       0.06%  
ˆHae M. and Jin S. Park d/b/a Buford Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/15/2039       166.5       156.4       166.9       0.07%  
ˆMoochie's LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2024       100.5       77.3       76.8       0.03%  
ˆThe River Beas LLC and Punam Singh     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/8/2039       90.2       85.4       91.7       0.04%  
ˆAS Boyals LLC d/b/a Towne Liquors     Food and Beverage Stores       Term Loan       Prime plus 2.75%       4/29/2039       117.5       110.7       119.8       0.05%  
ˆGerami Realty, LC Sherrill Universal City Corral, LP     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/23/2027       78.8       65.2       67.8       0.03%  
ˆComplete Body & Paint, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/23/2039       20.8       19.6       21.3       0.01%  
ˆIsland Wide Realty LLC and Long Island Partners, Inc.     Real Estate       Term Loan       Prime plus 2.75%       4/22/2039       103.8       97.8       105.9       0.04%  
ˆWilshire Media Systems Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/17/2024       186.2       140.3       139.6       0.06%  
ˆ1899 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       128.5       138.5       0.06%  
ˆLittle People's Village II LLC and Iliopoulos Realty LLC     Social Assistance       Term Loan       Prime plus 2.75%       3/31/2039       92.1       87.1       92.6       0.04%  
ˆDantanna's Tavern LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2024       164.3       124.7       124.9       0.05%  
ˆHodges Properties LLC and Echelon Enterprises Inc d/b/a Treads Bicycle     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       3/31/2039       449.0       422.1       454.3       0.18%  
ˆRDT Enterprises, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2028       141.2       120.4       126.0       0.05%  
ˆLittle People's Village II LLC and Iliopoulos Realty LLC     Social Assistance       Term Loan       Prime plus 2.75%       3/31/2039       101.5       96.1       102.2       0.04%  
ˆEagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC     Truck Transportation       Term Loan       Prime plus 2.75%       3/31/2024       750.0       558.8       566.9       0.23%  
ˆKemmer, LLC and Pitts Package Store, Inc.     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/31/2039       117.5       110.6       116.6       0.05%  
ˆWilban LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/28/2039       427.5       402.7       432.7       0.17%  
ˆLake Area Autosound LLC and Ryan H. Whittington     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       7/28/2039       125.0       119.2       127.8       0.05%  
ˆHascher Gabelstapler Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/26/2024       143.2       108.1       109.8       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-198


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆKnowledge First Inc d/b/a Magic Years of Learning and Kimberly Knox     Social Assistance       Term Loan       Prime plus 2.75%       3/21/2039     $ 145.0     $ 136.5     $ 145.7       0.06%  
ˆCormac Enterprises and Wyoming Valley Beverage Incorporated     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/20/2039       110.8       104.3       112.8       0.05%  
ˆKinisi, Inc. d/b/a The River North UPS Store     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/18/2024       41.2       23.1       23.5       0.01%  
ˆSE Properties 39 Old Route 146, LLC SmartEarly Clifton Park
LLC
    Social Assistance       Term Loan       Prime plus 2.75%       3/14/2039       408.0       384.6       416.1       0.17%  
ˆTortilla King Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2039       216.9       204.7       217.6       0.09%  
ˆTortilla King, Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2029       1,033.1       901.0       928.0       0.37%  
ˆBowl Mor, LLC d/b/a Bowl Mor Lanes/Spare Lounge, Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/13/2039       223.5       210.1       227.3       0.09%  
ˆAvayaan2 LLC d/b/a Island Cove     Gasoline Stations       Term Loan       Prime plus 2.75%       3/7/2039       157.5       148.0       159.1       0.06%  
ˆOnofrio's Fresh Cut Inc     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/6/2024       75.0       55.9       57.1       0.02%  
ˆR & R Boyal LLC d/b/a Cap N Cat Clam Bar and Little Ease Tavern     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/28/2039       417.5       391.9       419.5       0.17%  
ˆSummit Beverage Group LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       2/28/2024       350.6       258.7       262.0       0.10%  
ˆ952 Boston Post Road Realty, LLC and HNA LLC d/b/a Styles International     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2039       211.0       198.0       211.4       0.08%  
ˆChoe Trade Group Inc d/b/a Rapid Printers of Monterey     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       2/28/2024       159.2       117.5       120.6       0.05%  
ˆFaith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2039       214.2       201.3       214.8       0.09%  
ˆ96 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       133.1       144.0       0.06%  
ˆJWB Industries, Inc. d/b/a Carteret Die Casting     Primary Metal Manufacturing       Term Loan       Prime plus 2.75%       2/11/2024       280.0       206.5       205.7       0.08%  
ˆ986 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       93.4       100.3       0.04%  
ˆAwesome Pets II Inc d/b/a Mellisa's Pet Depot     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       2/7/2024       83.2       62.1       62.0       0.02%  
ˆSarah Sibadan d/b/a Sibadan Agency     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       1/27/2039       129.4       121.2       130.7       0.05%  
ˆJDR Industries Inc d/b/a CST-The Composites Store, JetCat USA     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       1/21/2024       140.3       102.4       102.9       0.04%  
ˆIcore Enterprises Inc d/b/a Air Flow Filters Inc     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       1/15/2024       21.8       15.9       16.3       0.01%  
ˆCarl R. Bieber, Inc. d/b/a Bieber Tourways/Bieber Transportation     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/30/2027       712.5       596.1       623.7       0.25%  
ˆNutmeg North Associates LLC Steeltech Building Products Inc     Construction of Buildings       Term Loan       Prime plus 2.75%       12/31/2038       897.7       857.6       929.5       0.37%  
ˆCLU Amboy, LLC and Amboy Group, LLC d/b/a Tommy Moloney's     Food Manufacturing       Term Loan       Prime plus 2.75%       12/27/2023       656.2       489.9       504.6       0.20%  

 
 
See accompanying notes to these consolidated financial statements.

F-199


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆShane 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     $ 301.9     $ 327.1       0.13%  
ˆKK International Trading Corporation     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/23/2028       190.0       160.4       168.2       0.07%  
ˆKurtis Sniezek d/b/a Wolfe's Foreign Auto     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/20/2038       88.9       83.1       90.5       0.04%  
ˆMosley Auto Group LLC d/b/a America's Automotive     Repair and Maintenance       Term Loan       Prime plus 2.75%       12/20/2038       221.5       207.0       225.2       0.09%  
ˆLefont Theaters Inc.     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       12/19/2023       14.4       10.4       10.6       —%  
ˆPLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/19/2038       555.3       519.0       563.0       0.22%  
ˆTAK Properties LLC and Kinderland Inc     Social Assistance       Term Loan       Prime plus 2.75%       12/18/2038       405.0       379.1       411.4       0.16%  
ˆTOL LLC d/b/a Wild Birds Unlimited     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       12/13/2023       18.0       13.4       13.7       0.01%  
ˆ920 CHR Realty LLC V. Garofalo Carting Inc     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       12/10/2038       418.1       391.2       426.0       0.17%  
ˆDKB Transport Corp     Truck Transportation       Term Loan       Prime plus 2.75%       12/5/2038       138.8       129.7       141.2       0.06%  
ˆFirm Foundations Inc David S Gaitan Jr and Christopher K Daigle     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/3/2038       104.3       97.4       105.3       0.04%  
ˆSpectrum Development LLC and Solvit Inc & Solvit North, Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/2/2023       387.3       281.2       287.9       0.12%  
ˆBVIP Limousine Service LTD     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       11/27/2038       76.5       71.4       77.6       0.03%  
ˆEco-Green Reprocessing LLC and Denali Medical Concepts, LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       11/27/2023       67.2       48.1       49.0       0.02%  
ˆWallace Holdings LLC GFA International Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.5%       11/25/2023       125.0       89.0       90.1       0.04%  
ˆAcuCall LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/21/2023       15.8       11.1       11.3       —%  
ˆKids in Motion of Springfield LLC d/b/a The Little Gym of Springfield IL     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       11/18/2023       45.0       32.8       33.4       0.01%  
ˆYousef Khatib d/b/a Y&M Enterprises     Wholesale Electronic Markets and Agents and Brokers       Term Loan       Prime plus 2.75%       11/15/2023       75.0       53.6       54.7       0.02%  
ˆHowell Gun Works LLC     Sporting Goods, Hobby, Musical Instrument, and Book Stores       Term Loan       Prime plus 2.75%       11/14/2023       8.3       6.0       6.1       —%  
ˆPolpo Realty, LLC Polpo Restaurant, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/6/2038       62.5       58.2       63.4       0.03%  
ˆMid-Land Sheet Metal Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/31/2038       137.5       128.3       139.4       0.06%  
ˆMaster CNC Inc & Master Properties LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2038       596.6       555.6       601.3       0.24%  
ˆJanice B. McShan and The Metropolitan Day School, LLC     Social Assistance       Term Loan       Prime plus 2.75%       10/31/2023       42.8       31.1       32.0       0.01%  
ˆ1 North Restaurant Corp d/b/a 1 North Steakhouse     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       10/31/2038       212.5       197.9       215.2       0.09%  

 
 
See accompanying notes to these consolidated financial statements.

F-200


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTwinsburg Hospitality Group LLC d/b/a Comfort Suites     Accommodation       Term Loan       Prime plus 2.75%       10/31/2038     $ 945.0     $ 883.7     $ 958.5       0.38%  
ˆNew Image Building Services Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/29/2023       331.2       234.4       239.3       0.10%  
ˆGreenbrier Technical Services,
Inc
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/24/2023       240.1       154.8       159.4       0.06%  
ˆClairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/24/2038       246.3       229.3       248.5       0.10%  
ˆKelly Auto Care LLC d/b/a Shoreline Quick Lube and Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/18/2023       87.5       61.9       63.2       0.03%  
ˆOnofrios Enterprises LLC Onofrios Fresh Cut, Inc     Food Manufacturing       Term Loan       Prime plus 2.75%       9/30/2038       312.5       291.5       316.5       0.13%  
ˆDiscount Wheel and Tire     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/30/2038       223.8       207.8       225.3       0.09%  
ˆFirst Steps Real Estate Company, LLC and First Steps Preschool     Social Assistance       Term Loan       Prime plus 2.75%       9/30/2038       97.6       90.7       98.1       0.04%  
ˆLenoir Business Partners LLC LP Industries, Inc d/b/a Childforms     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       9/30/2038       322.7       277.4       301.4       0.12%  
ˆTop Properties LLC and LP Industries, Inc d/b/a Childforms     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       9/30/2038       120.0       112.1       122.0       0.05%  
ˆCencon Properties LLC and Central Connecticut Warehousing Company, Inc     Warehousing and Storage       Term Loan       Prime plus 2.75%       9/30/2038       344.5       320.5       348.6       0.14%  
ˆGabrielle Realty, LLC     Gasoline Stations       Term Loan       Prime plus 2.75%       9/27/2038       757.5       703.6       762.5       0.30%  
ˆMitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/27/2038       335.1       311.2       337.7       0.13%  
ˆEastside Soccer Dome, Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2038       463.8       430.6       468.5       0.19%  
ˆAnthony 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       92.9       101.0       0.04%  
ˆSoutheast Chicago Soccer, Inc.     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2038       51.2       47.6       51.8       0.02%  
ˆHJ & Edward Enterprises, LLC
d/b/a Sky Zone
    Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/26/2023       262.5       189.7       194.6       0.08%  
ˆKiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       9/25/2038       89.2       84.4       91.4       0.04%  
ˆDiamond Memorials Incorporated     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/25/2023       14.2       8.9       9.1       —%  
ˆFaith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/20/2038       268.4       249.6       270.9       0.11%  
ˆSerious-Fun in Alpharetta, LLC
d/b/a The Little Gym of Alpharetta
    Educational Services       Term Loan       Prime plus 2.75%       9/20/2023       46.2       32.6       33.2       0.01%  
ˆWestville Seafood LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/19/2038       112.3       104.3       113.1       0.05%  
ˆMaynard Enterprises Inc d/b/a Fastsigns of Texarkana     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/18/2023       16.0       11.4       11.6       —%  
ˆGrafio Inc d/b/a Omega Learning Center-Acworth     Educational Services       Term Loan       Prime plus 2.75%       9/13/2023       156.2       116.1       118.4       0.05%  
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/12/2028       54.8       45.5       47.6       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-201


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆThe Berlerro Group, LLC d/b/a Sky Zone     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/12/2023     $ 421.3     $ 304.3     $ 310.1       0.12%  
ˆProspect Kids Academy Inc     Educational Services       Term Loan       Prime plus 2.75%       9/11/2038       124.3       115.4       125.3       0.05%  
ˆAlma J. and William R. Walton and Almas Child Day Care Center, Inc     Social Assistance       Term Loan       Prime plus 2.75%       9/11/2038       39.5       36.7       39.9       0.02%  
ˆB for Brunette d/b/a Blo     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/10/2023       53.4       37.9       38.5       0.02%  
ˆSchmaltz Holdings, LLC and Schmaltz Operations, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/4/2038       224.2       206.9       224.3       0.09%  
ˆExcel RP Inc     Machinery Manufacturing       Term Loan       Prime plus 2.75%       8/30/2023       130.2       90.2       92.8       0.04%  
ˆIlOKA Inc d/b/a Microtech Tel and NewCloud Networks     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2023       687.5       476.1       486.2       0.19%  
ˆACI Northwest Inc.     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       8/30/2023       906.2       424.7       436.7       0.17%  
ˆGulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis     Social Assistance       Term Loan       Prime plus 2.75%       8/30/2023       43.3       30.0       30.8       0.01%  
ˆRamard Inc and Advanced Health Sciences Inc     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       8/28/2023       187.5       129.9       131.9       0.05%  
ˆRM Hawkins LLC d/b/a Pure Water Tech West and Robert M Hawkins     Nonstore Retailers       Term Loan       Prime plus 2.75%       8/26/2023       85.8       56.2       57.8       0.02%  
ˆJSIL LLC d/b/a Blackstones Hairdressing     Personal and Laundry Services       Term Loan       Prime plus 2.75%       8/16/2023       19.5       13.3       13.6       0.01%  
ˆIsland Nautical Enterprises, Inc. and Ingwall Holdings, LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       8/14/2038       445.0       322.0       348.6       0.14%  
ˆCaribbean Concepts, Inc. d/b/a Quick Bleach     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       8/12/2023       22.5       15.6       15.9       0.01%  
ˆMajestic Contracting Services,
Inc.
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/26/2038       190.0       175.8       190.4       0.08%  
ˆDaniel 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       7.8       8.0       —%  
ˆAngkor Restaurant Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/19/2038       93.0       86.0       93.5       0.04%  
ˆHarbor Ventilation Inc and Estes Investment, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2038       92.1       20.3       22.1       0.01%  
ˆTri County Heating and Cooling Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/19/2023       87.8       60.1       61.8       0.02%  
ˆMorning Star Trucking LLC and Morning Star Equipment and Leasing LLC     Truck Transportation       Term Loan       Prime plus 2.75%       7/17/2023       53.7       36.8       37.4       0.01%  
ˆMaxiflex LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/28/2023       153.5       103.5       106.4       0.04%  
ˆGIA Realty LLC and VRAJ GIA LLC d/b/a Lakeview Laundromat     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/28/2038       97.5       90.0       97.9       0.04%  
ˆJRA Holdings LLC Jasper County Cleaners Inc d/b/a Superior Cleaner     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/28/2038       121.0       110.2       119.8       0.05%  
ˆ2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2026       1,250.0       748.2       778.9       0.31%  
ˆBlakeslee Arpaia Chapman, Inc. d/b/a Blakeslee Industrial
Services
    Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/18/2028       875.0       715.9       751.4       0.30%  

 
 
See accompanying notes to these consolidated financial statements.

F-202


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆKDP 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     $ 232.8     $ 236.5       0.09%  
ˆElite Structures Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       6/12/2038       932.8       839.9       913.1       0.36%  
ˆWillowbrook Properties LLC Grove Gardens Landscaping Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/5/2038       186.3       172.0       186.6       0.07%  
ˆAbsolute Desire LLC and Mark H. Szierer and Sophisticated Smile     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/5/2038       188.2       174.0       188.1       0.08%  
ˆRXSB, Inc d/b/a Medicine
Shoppe
    Health and Personal Care Stores       Term Loan       Prime plus 2.75%       5/30/2023       186.2       124.8       126.6       0.05%  
ˆGregory P Jellenek OD and Associates PC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       5/28/2023       63.5       43.2       44.1       0.02%  
ˆRyan D. Thornton and Thornton & Associates LLC     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       5/24/2023       68.7       34.1       34.6       0.01%  
ˆPowerWash Plus, Inc. and CJR, LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/30/2038       550.0       506.6       548.6       0.22%  
ˆPeanut Butter & Co., Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       4/30/2023       100.0       65.8       66.8       0.03%  
ˆBrothers International Desserts     Food Manufacturing       Term Loan       Prime plus 2.75%       4/26/2023       230.0       152.2       155.7       0.06%  
ˆKidrose, LLC d/b/a Kidville Riverdale     Educational Services       Term Loan       Prime plus 2.75%       4/22/2023       78.7       52.7       53.8       0.02%  
ˆ1258 Hartford TPKE, LLC and Phelps and Sons, Inc     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/29/2038       124.6       114.4       123.6       0.05%  
ˆCapital Scrap Metal, LLC and Powerline Investment, LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       3/29/2038       500.0       436.8       474.5       0.19%  
ˆMRM Supermarkets Inc d/b/a Constantins Breads; Dallas Gourmet Breads     Food Manufacturing       Term Loan       Prime plus 2.75%       3/29/2038       336.0       309.0       333.5       0.13%  
ˆNeyra Industries, Inc. and Edward Neyra     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       3/27/2023       217.5       142.2       146.0       0.06%  
ˆXela Pack, Inc. and Aliseo and Catherine Gentile     Paper Manufacturing       Term Loan       Prime plus 2.75%       3/27/2028       271.8       218.9       229.5       0.09%  
ˆA & M Commerce, Inc. d/b/a Cranberry Sunoco     Gasoline Stations       Term Loan       Prime plus 2.75%       3/27/2038       330.3       303.0       328.6       0.13%  
ˆAmerican Diagnostic Imaging, Inc. d/b/a St. Joseph Imaging Center     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/25/2038       537.5       493.4       533.8       0.21%  
ˆMichael A. and Heather R. Welsch d/b/a Art & FrameEtc.     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/22/2038       67.5       61.9       67.2       0.03%  
ˆM & 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       203.6       0.08%  
ˆTruth Technologies Inc d/b/a Truth Technologies Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/21/2023       79.5       52.0       52.8       0.02%  
ˆJ. Kinderman & Sons Inc., d/b/a BriteStar Inc.     Electrical Equipment, Appliance, and Component Manufacturing       Term Loan       Prime plus 2.75%       3/20/2023       181.2       119.2       122.4       0.05%  
ˆStellar Environmental LLC     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       3/18/2023       56.3       36.8       37.8       0.02%  
ˆSound Manufacturing, Inc. and Monster Power Equipment Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       3/15/2023       523.0       340.7       348.2       0.14%  
ˆGolden Gate Lodging LLC     Accommodation       Term Loan       Prime plus 2.75%       3/12/2038       115.0       105.6       114.4       0.05%  
ˆRiver Club Golf Course Inc d/b/a The River Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2038       475.2       435.2       471.5       0.19%  

 
 
See accompanying notes to these consolidated financial statements.

F-203


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBakhtar Group LLC d/b/a Malmaison     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2023     $ 103.8     $ 67.6     $ 68.5       0.03%  
ˆOsceola River Mill, LLC and Ironman Machine, Inc.     Machinery Manufacturing       Term Loan       Prime plus 2.75%       2/20/2038       86.3       79.0       85.6       0.03%  
ˆJava Warung, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/19/2038       51.0       46.8       50.7       0.02%  
ˆNancy & Karl Schmidt and Moments to Remember USA,
LLC
    Printing and Related Support Activities       Term Loan       Prime plus 2.75%       2/15/2038       106.2       97.4       105.5       0.04%  
ˆOutcome Driven Innovation, Inc. d/b/a ODI     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       2/12/2023       84.9       54.2       54.9       0.02%  
ˆKnits R Us, Inc. d/b/a NYC
Sports/Mingle
    Textile Mills       Term Loan       Prime plus 2.75%       2/11/2038       125.0       114.7       124.6       0.05%  
ˆNorth Country Transport, LLC     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       2/6/2023       15.0       9.7       9.9       —%  
ˆMJD Investments, LLC d/b/a The Community Day School     Social Assistance       Term Loan       Prime plus 2.75%       1/31/2038       258.3       236.1       255.6       0.10%  
ˆSherill Universal City d/b/a Golden Corral     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/28/2038       440.5       404.3       437.7       0.17%  
ˆMacho LLC and Madelaine Chocolate Novelties Inc     Food Manufacturing       Term Loan       Prime plus 2.75%       12/31/2037       500.0       458.6       500.3       0.20%  
ˆWI130, LLC & Lakeland Group, Inc d/b/a Lakeland Electrical     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/31/2028       271.4       220.4       231.7       0.09%  
ˆElegant Fireplace Mantels, Inc.
d/b/a Elegant Fireplace Mantels
    Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2022       97.5       61.5       62.9       0.03%  
ˆBabie Bunnie Enterprises Inc d/b/a Triangle Mothercare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/28/2027       46.2       33.3       34.8       0.01%  
ˆJohn Duffy Fuel Co., Inc.     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/28/2022       513.8       324.2       333.1       0.13%  
ˆPolpo Realty LLC & Polpo Restaurant LLC d/b/a Polpo Restauran     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/27/2037       517.5       473.3       516.4       0.21%  
ˆMartin L Hopp, MD PHD A Medical Corp d/b/a Tower ENT     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/21/2022       66.3       41.6       42.6       0.02%  
ˆUnited Woodworking, Inc     Wood Product Manufacturing       Term Loan       6%       12/20/2022       17.2       11.3       11.6       —%  
ˆPioneer Window Holdings, Inc and Subsidiaries d/b/a Pioneer Windows     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/20/2022       225.0       141.5       145.1       0.06%  
ˆEzzo Properties, LLC and Great Lakes Cleaning, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/20/2027       389.6       308.7       323.1       0.13%  
ˆThe Amendments Group LLC d/b/a Brightstar     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/17/2022       22.5       14.2       14.6       0.01%  
ˆCheryle A Baptiste and Cheryle Baptiste DDS PLLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/30/2037       286.5       262.0       285.6       0.11%  
ˆAegis Creative Communications, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/30/2022       387.5       246.5       251.8       0.10%  
ˆDaniel 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       222.7       0.09%  
ˆD&L Rescources, Inc. d/b/a The UPS Store     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/27/2022       9.8       6.1       6.2       —%  
ˆRichmond Hill Mini Market,
LLC
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/27/2037       185.2       168.8       183.9       0.07%  
ˆDRV Enterprise, Inc. d/b/a Cici's Pizza # 339     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       11/26/2022       65.0       37.7       38.7       0.02%  

 
 
See accompanying notes to these consolidated financial statements.

F-204


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆU & A Food and Fuel, Inc. d/b/a Express Gas & Food Mart     Gasoline Stations       Term Loan       Prime plus 2.75%       11/21/2037     $ 96.2     $ 87.6     $ 95.6       0.04%  
ˆPioneer Windows Manufacturing Corp, Pioneer Windows     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       11/21/2022       275.0       170.8       175.1       0.07%  
ˆR & J Petroleum LLC and Manar USA, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       11/20/2037       180.0       163.9       178.7       0.07%  
ˆSt Judes Physical Therapy P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/19/2022       21.0       13.1       13.4       0.01%  
ˆHi-Def Imaging, Inc. d/b/a SpeedPro Imaging     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       11/9/2022       22.2       13.8       14.1       0.01%  
ˆReidville Hydraulics Mfg Inc d/b/a Summit     Machinery Manufacturing       Term Loan       Prime plus 2.75%       11/2/2037       265.9       242.7       263.9       0.11%  
ˆBig Apple Entertainment Partners, LLC d/b/a Ripley's Believe It or Not     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       10/26/2022       180.0       113.2       115.7       0.05%  
ˆLA Diner Inc d/b/a Loukas L A Diner     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/28/2037       677.5       619.2       675.0       0.27%  
ˆUniversity Park Retreat, LLC d/b/a Massage Heights     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/27/2022       76.0       46.0       47.3       0.02%  
ˆForno Italiano Di Nonna Randazzo, LLC d/b/a Nonna Randazzo's Bakery     Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/26/2037       183.7       167.9       182.7       0.07%  
ˆLaSalle Market and Deli EOK Inc and Rugen Realty LLC d/b/a LaSalle Mark     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/21/2037       252.2       228.7       248.8       0.10%  
ˆO'Rourkes Diner LLC d/b/a O'Rourke's Diner     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/19/2037       65.5       59.4       64.6       0.03%  
ˆAJK Enterprise LLC d/b/a AJK Enterprise LLC     Truck Transportation       Term Loan       Prime plus 2.75%       8/27/2022       16.5       9.8       10.1       —%  
ˆNew Image Building Services, Inc. d/b/a New Image Repair
Services
    Repair and Maintenance       Term Loan       Prime plus 2.75%       8/23/2037       285.6       258.5       280.8       0.11%  
ˆSuncoast Aluminum Furniture,
Inc
    Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       8/17/2037       360.0       325.8       355.2       0.14%  
ˆHofgard & Co., Inc. d/b/a HofgardBenefits     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       7/27/2022       107.3       63.2       64.8       0.03%  
ˆGeorgia Safe Sidewalks LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/27/2022       15.0       8.7       8.9       —%  
ˆScoville Plumbing & Heating Inc and Thomas P. Scoville     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/25/2022       50.0       32.1       32.9       0.01%  
ˆCentral Tire, Inc. d/b/a Cooper Tire & Auto Services     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/29/2037       288.5       259.6       282.3       0.11%  
ˆWPI, LLC     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       6/29/2024       129.5       87.2       90.0       0.04%  
ˆHavana Central (NY) 5, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/29/2022       1,166.8       736.2       754.3       0.30%  
ˆJenkins-Pavia Corporation d/b/a Victory Lane Quick Oil Change     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/27/2037       69.7       62.8       68.3       0.03%  
ˆKIND-ER-ZZ Inc d/b/a Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/15/2022       50.0       28.8       29.4       0.01%  
ˆGraphish Studio, Inc. and Scott Fishoff     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/14/2022       20.2       11.8       12.0       —%  
ˆALF, LLC Mulit-Service Eagle Tires     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       5/31/2037       62.9       56.5       61.5       0.02%  
ˆCraig R Freehauf d/b/a Lincoln Theatre     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       5/31/2022       47.9       20.3       20.8       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-205


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLefont Theaters, Inc.     Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       5/30/2022     $ 137.0     $ 78.6     $ 80.4       0.03%  
ˆChristou Real Estate Holdings LLC d/b/a Tops American Grill     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/17/2037       284.0       254.7       277.4       0.11%  
ˆTracey Vita-Morris d/b/a Tracey Vita's School of Dance     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       5/10/2022       22.5       12.9       13.2       0.01%  
ˆBisson Transportation, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2037       588.1       550.0       597.5       0.24%  
ˆBisson Moving & Storage Company Bisson Transportation Inc     Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2022       528.8       342.1       350.3       0.14%  
ˆFair Deal Food Mart Inc d/b/a Neighbors Market     Gasoline Stations       Term Loan       Prime plus 2.75%       5/3/2037       381.2       342.3       372.9       0.15%  
ˆTanner Optical, Inc. d/b/a Murphy Eye Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       4/27/2022       8.2       4.6       4.7       —%  
ˆZane Filippone Co Inc d/b/a Culligan Water Conditioning     Nonstore Retailers       Term Loan       Prime plus 2.75%       4/12/2022       558.2       316.4       324.0       0.13%  
ˆIndoor Playgrounds Limited Liability Company d/b/a
Kidville
    Educational Services       Term Loan       Prime plus 2.75%       4/5/2022       19.5       6.2       6.3       —%  
ˆBrandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       3/30/2031       231.4       191.7       204.1       0.08%  
ˆAccess Staffing, LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/30/2022       187.5       104.5       106.4       0.04%  
ˆWillow 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       675.3       734.9       0.29%  
ˆDC Realty, LLC d/b/a FOGO Data Centers     Professional, Scientific, and Technical Services       Term Loan       6%       3/23/2037       3,133.8       2,623.4       2,855.0       1.14%  
ˆDC Realty, LLC d/b/a FOGO Data Centers     Professional, Scientific, and Technical Services       Term Loan       6.25%       3/23/2022       1,540.0       808.9       828.2       0.33%  
ˆManuel P. Barrera and Accura Electrical Contractor, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/23/2028       103.7       80.0       83.9       0.03%  
ˆShweiki Media, Inc. d/b/a Study Breaks Magazine     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       3/22/2027       1,178.8       883.7       923.5       0.37%  
ˆATI Jet, Inc.     Air Transportation       Term Loan       Prime plus 2.75%       12/28/2026       852.8       615.9       644.7       0.26%  
ˆJ. Kinderman & Sons, Inc. d/b/a Brite Star Manufacturing Company     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       12/22/2036       495.0       446.4       486.3       0.19%  
ˆK's Salon, LLC d/b/a K's Salon     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/20/2021       73.6       39.2       40.0       0.02%  
ˆ15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       12/16/2021       250.0       131.4       134.4       0.05%  
ˆM & H Pinestraw, Inc. and Harris L. Maloy     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/15/2021       238.2       135.5       138.5       0.06%  
ˆTaylor Transport, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       12/8/2021       515.5       179.0       183.2       0.07%  
ˆThomas P. Scoville d/b/a Scoville Plumbing & Heating, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/16/2021       62.5       34.3       35.1       0.01%  
ˆMRM Supermarkets, Inc. d/b/a Constantin's Breads     Food Manufacturing       Term Loan       Prime plus 2.75%       11/10/2021       137.5       72.1       73.7       0.03%  
ˆK9 Bytes, Inc & Epazz, Inc d/b/a K9 Bytes, Inc     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       10/26/2021       58.7       31.3       31.9       0.01%  
ˆ28 Cornelia Street Properties, LLC and Zouk, Ltd. d/b/a Palma     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       10/25/2021       22.5       11.5       11.8       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-206


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ39581 Garfield, LLC and Tri County Neurological Associates, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/30/2036     $ 83.3     $ 73.3     $ 79.8       0.03%  
ˆRobert E. Caves, Sr. and American Plank d/b/a Caves Enterprises     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/30/2021       302.5       150.3       153.6       0.06%  
ˆ39581 Garfield, LLC and Tricounty Neurological Associates, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/30/2036       28.4       24.9       27.1       0.01%  
ˆPTK, Incorporated d/b/a Night N Day 24 HR Convenience Store     Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/30/2036       137.5       121.3       132.0       0.05%  
ˆBig Apple Entertainment Partners, LLC d/b/a Ripley's Believe it or Not     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/28/2021       1,070.0       535.1       545.1       0.22%  
ˆEquity 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       31.7       32.3       0.01%  
ˆBryan Bantry Inc.     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       9/8/2021       400.0       42.4       43.2       0.02%  
ˆMichael S. Decker & Janet Decker d/b/a The Hen House Cafe     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/30/2036       16.4       14.4       15.6       0.01%  
ˆQycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/19/2021       187.5       88.2       90.0       0.04%  
ˆTrademark Equipment Company Inc and David A. Daniel     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       8/19/2036       133.6       117.5       127.8       0.05%  
ˆValiev Ballet Academy, Inc     Performing Arts, Spectator Sports, and Related Industries       Term Loan       Prime plus 2.75%       8/12/2036       91.5       37.3       40.6       0.02%  
ˆA & A Auto Care, LLC d/b/a
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%  
ˆLaHoBa, LLC d/b/a Papa John's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/3/2036       77.5       67.7       73.7       0.03%  
ˆKelly Chon LLC d/b/a Shi-Golf     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       7/29/2021       17.5       6.2       6.3       —%  
ˆMTV Bowl, Inc. d/b/a Legend Lanes     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/30/2036       248.5       218.4       237.2       0.09%  
ˆLavertue Properties LLP d/b/a Lavertue Properties     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       Prime plus 2.75%       6/29/2036       44.7       39.3       42.8       0.02%  
ˆLisle Lincoln II Limited Partnership d/b/a Lisle Lanes LP     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/29/2036       338.1       307.9       334.6       0.13%  
ˆPierce Developments, Inc. d/b/a Southside Granite     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/13/2036       256.1       224.1       243.3       0.10%  
ˆMajor Queens Body & Fender
Corp
    Repair and Maintenance       Term Loan       Prime plus 2.75%       6/10/2021       28.6       13.7       14.0       0.01%  
ˆJ&K Fitness, LLC d/b/a Physiques Womens Fitness Center     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/8/2036       449.2       403.6       438.7       0.18%  
ˆPeanut Butter & Co., Inc. d/b/a Peanut Butter & Co.     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       6/3/2021       65.5       30.2       30.7       0.01%  
ˆDemand Printing Solutions, Inc. and MLM Enterprises, LLC     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       5/27/2021       16.5       7.7       7.9       —%  
ˆModern on the Mile, LLC d/b/a Ligne Roset     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       5/25/2021       212.5       99.1       100.9       0.04%  
ˆMusic Mountain Water Company, LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       4/25/2036       138.1       119.8       130.2       0.05%  

 
 
See accompanying notes to these consolidated financial statements.

F-207


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆProfile Performance, Inc. and Eidak Real Estate, L.L.C.     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/20/2036     $ 127.5     $ 111.1     $ 120.8       0.05%  
ˆNorthwind Outdoor Recreation, Inc. d/b/a Red Rock Wilderness
Store
    Nonstore Retailers       Term Loan       Prime plus 2.75%       4/18/2036       129.5       115.3       125.4       0.05%  
ˆMichael S. Korfe d/b/a North Valley Auto Repair     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/24/2036       15.5       13.5       14.6       0.01%  
ˆActknowledge, Inc d/b/a Actknowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/21/2021       57.3       26.0       26.5       0.01%  
ˆKey Products I&II, Inc. d/b/a Dunkin' Donuts/Baskin-Robbins     Food and Beverage Stores       Term Loan       Prime plus 2.75%       3/10/2021       153.0       69.6       70.8       0.03%  
ˆStephen Frank, Patricia Frank and Suds Express LLC d/b/a Frank Chiropra     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       2/25/2023       63.0       33.8       34.8       0.01%  
ˆSuzyQue’s LLC d/b/a Suzy Que’s     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/11/2036       61.0       53.1       57.7       0.02%  
ˆLittle People’s Village, LLC d/b/a Little People’s Village     Social Assistance       Term Loan       Prime plus 2.75%       1/31/2036       31.1       26.9       29.2       0.01%  
ˆSeagate Group Holdings, Inc. d/b/a Seagate Logistics, Inc.     Support Activities for Transportation       Term Loan       Prime plus 2.75%       1/28/2036       113.4       98.0       106.5       0.04%  
ˆPatrageous Enterprises, LLC d/b/a Incredibly Edible Delites of Laurel     Food and Beverage Stores       Term Loan       Prime plus 2.75%       12/29/2020       7.6       3.1       3.2       —%  
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown     Support Activities for Transportation       Term Loan       5.25%       12/28/2035       145.9       133.2       144.8       0.06%  
Groundworks Unlimited LLC     Specialty Trade Contractors       Term Loan       6%       12/17/2023       120.0       76.0       78.7       0.03%  
ˆShree OM Lodging, LLC d/b/a Royal Inn     Accommodation       Term Loan       Prime plus 2.75%       12/17/2035       27.7       23.9       26.0       0.01%  
ˆLodin Medical Imaging, LLC d/b/a Watson Imaging Center     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/1/2020       66.4       27.3       27.8       0.01%  
ˆRobert F. Schuler and Lori A. Schuler d/b/a Bob’s Service
Center
    Repair and Maintenance       Term Loan       Prime plus 2.75%       11/30/2035       34.0       29.3       31.8       0.01%  
ˆWest 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       128.1       139.2       0.06%  
ˆLincoln Park Physical Therapy     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/20/2020       43.5       16.2       16.5       0.01%  
ˆK9 Bytes, Inc & Epazz, Inc     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       9/30/2020       18.5       7.7       7.8       —%  
ˆElan Realty, LLC and Albert Basse Asociates, Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       9/30/2035       228.2       195.3       212.1       0.08%  
ˆSuccess Express, Inc. d/b/a Success Express     Couriers and Messengers       Term Loan       Prime plus 2.75%       9/29/2020       91.8       36.1       36.7       0.01%  
ˆModern Manhattan, LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       9/20/2020       204.0       81.7       83.2       0.03%  
ˆDirk's Trucking, L.L.C. d/b/a Dirk's Trucking     Truck Transportation       Term Loan       Prime plus 2.75%       9/17/2020       17.7       6.9       7.0       —%  
ˆRudy & Louise Chavez d/b/a Clyde's Auto and Furniture Upholstery     Repair and Maintenance       Term Loan       Prime plus 2.75%       9/2/2035       50.1       42.8       46.5       0.02%  
ˆNewsome Trucking Inc and Kevin Newsome     Truck Transportation       Term Loan       Prime plus 2.75%       9/2/2035       423.1       206.1       223.8       0.09%  
ˆCalifornia College of Communications, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/2/2020       172.5       70.6       71.9       0.03%  
ˆDDLK Investments LLC d/b/a Smoothie King     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/30/2020       7.5       2.1       2.2       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-208


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMembers Only Software     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2020     $ 40.3     $ 15.4     $ 15.7       0.01%  
ˆActKnowledge, Inc d/b/a ActKnowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/30/2020       50.0       18.7       19.0       0.01%  
ˆI-90 RV & Auto Supercenter     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       6/29/2035       74.9       63.6       69.0       0.03%  
ˆZouk, Ltd. d/b/a Palma     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/25/2020       27.5       10.7       10.9       —%  
ˆCJ Park Inc. d/b/a Kidville Midtown West     Educational Services       Term Loan       Prime plus 2.75%       6/25/2020       26.4       7.8       7.9       —%  
ˆTanner Optical Inc. d/b/a Murphy Eye Care     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/22/2035       94.6       80.2       87.0       0.03%  
ˆM & 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%  
ˆExcel RP, Inc./Kevin and Joann Foley     Machinery Manufacturing       Term Loan       Prime plus 2.75%       7/8/2028       50.0       36.8       38.9       0.02%  
ValleyStar, Inc. d/b/a BrightStar HealthCare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       6.1       2.2       2.3       —%  
ˆValleyStar, Inc. d/b/a BrightStar Healthcare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       7.5       2.8       2.8       —%  
ˆDiag, LLC d/b/a Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/21/2020       37.5       13.5       13.8       0.01%  
ˆM & H Pine Straw, Inc and Harris L. Maloy     Support Activities for Agriculture and Forestry       Term Loan       6%       4/30/2020       183.3       57.0       58.0       0.02%  
ˆNew Economic Methods LLC d/b/a Rita's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/15/2020       24.8       0.6       0.7       —%  
ˆCocoa Beach Parasail Corp. d/b/a Cocoa Beach Parasail     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       4/26/2020       6.3       2.2       2.2       —%  
ˆVortex Automotive LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/5/2035       76.6       64.7       70.1       0.03%  
ˆLahoba, LLC d/b/a Papa John's Pizza     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/30/2034       42.5       35.7       38.7       0.02%  
ˆMusic Mountain Water Company, LLC d/b/a Music Mountain Water Co.     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       12/29/2019       185.3       58.8       59.6       0.02%  
ˆAnimal Intrusion Prevention Systems Holding Company,
LLC
    Administrative and Support Services       Term Loan       Prime plus 2.75%       3/29/2024       126.5       27.4       28.4       0.01%  
ˆDavid A. Nusblatt, D.M.D, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/11/2019       9.0       2.8       2.8       —%  
ˆCMA Consulting d/b/a Construction Management Associates     Construction of Buildings       Term Loan       Prime plus 2.75%       12/11/2019       58.5       16.5       16.7       0.01%  
ˆKMC RE, LLC & B&B Kennels     Personal and Laundry Services       Term Loan       Prime plus 2.75%       11/19/2034       58.3       48.8       52.8       0.02%  
ˆDemand Printing Solutions, Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/12/2019       10.0       3.1       3.1       —%  
ˆDemand Printing Solutions, Inc     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/29/2034       147.5       123.0       133.2       0.05%  
Rover Repairs     Repair and Maintenance       Term Loan       Prime plus 2.5%       11/28/2029       72.5       52.8       39.3       0.02%  
ˆSupreme Screw Products     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/17/2019       308.2       69.8       70.6       0.03%  
ˆGray Tree Service, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2018       50.0       9.5       9.5       —%  
ˆGourmet to You, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2019       12.1       2.4       2.5       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-209


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆThe Alba Financial Group, Inc.     Securities, Commodity Contracts, and Other Financial Investments and Related Activities       Term Loan       6%       1/10/2019     $ 22.5     $ 10.9     $ 11.0       —%  
ˆGrapevine Professional Services, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       1/22/2019       8.2       1.6       1.6       —%  
ˆInflate World Corporation     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/30/2018       7.5       0.9       0.9       —%  
ˆPeter Thomas Roth Labs LL     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/26/2018       425.0       67.6       68.1       0.03%  
ˆCBA D&A Pope, LLC d/b/a Christian Brothers Automotive     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/14/2018       144.9       20.0       20.1       0.01%  
ˆGilbert Chiropractic Clinic, Inc.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/7/2018       22.5       2.7       2.7       —%  
ˆD & D's Divine Beauty School of Esther, LLC     Educational Services       Term Loan       6%       8/1/2031       57.7       50.1       53.7       0.02%  
Bwms Management, LLC     Food Services and Drinking Places       Term Loan       0%       3/1/2018       5.1       2.2       2.1       —%  
ˆBurks & Sons Development LLC d/b/a Tropical Smoothie Cafe     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/22/2018       49.7       4.8       4.9       —%  
Bliss Coffee and Wine Bar, LLC     Food Services and Drinking Places       Term Loan       6%       3/19/2018       87.5       69.0       69.4       0.03%  
ˆZog Inc.     Other Information Services       Term Loan       6%       3/17/2018       97.5       55.7       56.0       0.02%  
ˆSaan M.Saelee d/b/a Saelee's Delivery Service     Truck Transportation       Term Loan       Prime plus 2.75%       3/12/2018       9.8       1.0       1.0       —%  
Integrity Sports Group, LLC     Performing Arts, Spectator Sports, and Related Industries       Term Loan       6%       3/6/2018       75.0       31.0       31.2       0.01%  
ˆEnewhere Custom Canvas, LLC     Textile Product Mills       Term Loan       Prime plus 2.75%       2/15/2018       12.0       1.1       1.1       —%  
ˆA & A Acquisition, Inc. d/b/a
A & A International
    Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       2/15/2018       100.0       8.6       8.6       —%  
ˆAll American Printing     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/26/2032       69.7       36.6       39.4       0.02%  
ˆSeo's Paradise Cleaners, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/19/2018       9.8       0.3       0.3       —%  
Connect Litigation Technology,
Inc.
    Professional, Scientific, and Technical Services       Term Loan       Prime plus 2%       10/18/2025       150.6       26.5       18.9       0.01%  
ˆMargab, Inc. d/b/a Smoothie
King
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/28/2017       44.0       2.9       2.9       —%  
ˆRCB Enterprises, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2017       21.2       1.7       1.7       —%  
ˆTammy's Bakery, Inc. d/b/a Tammy's Bakery     Food Manufacturing       Term Loan       Prime plus 2.75%       12/10/2017       71.8       5.4       5.4       —%  
ˆMaria C. Sathre and David N. Sathre d/b/a Black Forest Liquor Store     Food and Beverage Stores       Term Loan       Prime plus 2.75%       11/28/2017       18.6       1.0       1.0       —%  
ˆKings Laundry, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/30/2017       64.5       2.9       2.9       —%  
ˆQuality Engraving Services Inc. and Ian M. Schnaitman     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       10/17/2017       15.0       0.9       0.9       —%  
ˆLouis B. Smith d/b/a LAQ Funeral Coach     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       9/15/2017       12.6       0.4       0.4       —%  
ˆ1911 East Main Street Holdings, Corp     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/18/2032       15.8       12.1       13.0       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-210


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMetano IBC Services, Inc. and Stone Brook Leasing, LLC     Rental and Leasing Services       Term Loan       Prime plus 2.75%       8/17/2017     $ 315.0     $ 8.5     $ 8.6       —%  
ˆMala Iyer, MD d/b/a Child and Family Wellness Center     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       8/11/2017       50.0       1.6       1.6       —%  
ˆWater Works Laundromat, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.25%       9/7/2027       267.3       173.6       178.5       0.07%  
ˆDave Kris, and MDK Ram Corp.     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/5/2026       52.6       30.9       32.3       0.01%  
ˆGill Express Inc. d/b/a American Eagle Truck Wash     Repair and Maintenance       Term Loan       Prime plus 2.75%       1/5/2027       286.9       180.6       189.7       0.08%  
ˆSmooth Grounds, Inc.     Food Services and Drinking Places       Term Loan       7.75%       12/31/2018       64.5       29.3       29.6       0.01%  
ˆFran-Car Corporation d/b/a Horizon Landscape Management     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/3/2028       244.7       155.6       164.2       0.07%  
ˆHead To Toe Personalized Pampering, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/27/2031       12.0       8.8       9.4       —%  
ˆChristopher F. Bohon & Pamela D. Bohon     Social Assistance       Term Loan       Prime plus 2.75%       10/28/2026       5.1       3.1       3.3       —%  
Mogas Limited     Gasoline Stations       Term Loan       Prime plus 2.75%       5/31/2030       100.0       71.3       54.1       0.02%  
ˆShree Om Lodging, LLC d/b/a Royal Inn     Accommodation       Term Loan       Prime plus 2.75%       5/2/2030       76.9       63.1       67.2       0.03%  
ˆPedzik's Pets, LLC     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       3/31/2030       12.3       8.8       9.3       —%  
ˆNancy 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       13.8       14.4       0.01%  
Patricia Hughes Jones, MD PC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       1/13/2020       18.0       4.6       3.2       —%  
ˆMoonlight Multi Media Production, Inc.     Other Information Services       Term Loan       5.3%       2/1/2025       7.0       3.0       3.2       —%  
David M. Goens d/b/a Superior Auto Paint & Body, Inc.     Repair and Maintenance       Term Loan       6%       8/26/2024       32.2       16.9       17.6       0.01%  
ˆMcCallister 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       —%  
ˆComputer Renaissance d/b/a Dante IT Services, Inc.     Electronics and Appliance Stores       Term Loan       Prime plus 3.75%       3/1/2018       13.5       1.0       1.0       —%  
ˆChong Hun Im d/b/a Kim's Market     Food and Beverage Stores       Term Loan       Prime plus 2.5%       2/27/2024       18.3       8.8       9.1       —%  
Whirlwind Car Wash, Inc.     Repair and Maintenance       Term Loan       Prime plus 2%       4/9/2029       76.9       65.2       66.5       0.03%  
ˆWest Experience, Inc/West Mountain Equipment Rental, Inc/Ski West Lodge     Amusement, Gambling, and Recreation Industries       Term Loan       6%       6/5/2026       1,076.7       843.7       883.4       0.35%  
ˆCenter-Mark Car Wash, Ltd     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/18/2024       52.3       26.3       27.3       0.01%  
ˆShuttle Car Wash, Inc. d/b/a Shuttle Car Wash     Repair and Maintenance       Term Loan       Prime plus 2.25%       11/10/2028       25.3       16.7       17.2       0.01%  
ˆMin Hui Lin     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2028       28.8       16.9       17.8       0.01%  
ˆDelta Partners, LLC d/b/a Delta Carwash     Repair and Maintenance       Term Loan       Prime plus 2.5%       4/5/2029       61.1       41.3       43.3       0.02%  
ˆAuto Sales, Inc.     Motor Vehicle and Parts Dealers       Term Loan       6%       8/17/2023       17.2       7.3       7.5       —%  
ˆB & J Manufacturing Corporation and Benson Realty Trust     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2%       3/30/2021       57.2       17.6       17.7       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-211


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆRAB Services, Inc. & Professional Floor Installations     Specialty Trade Contractors       Term Loan       Prime plus 2.5%       1/31/2023     $ 14.3     $ 6.5     $ 6.7       —%  
ˆRalph Werner d/b/a Werner Transmissions     Gasoline Stations       Term Loan       Prime plus 2.75%       12/29/2021       6.0       2.1       2.2       —%  
ˆTaste of Inverness, Inc. d/b/a China Garden     Food Services and Drinking Places       Term Loan       Prime plus 2%       6/29/2025       16.9       8.4       8.5       —%  
ˆM. Krishna, Inc. d/b/a Super 8 Motel     Accommodation       Term Loan       Prime plus 2%       3/20/2025       53.2       9.0       9.1       —%  
ˆRobin C. & Charles E. Taylor & Brigantine Aquatic Center LLC     Amusement, Gambling, and Recreation Industries       Term Loan       6%       9/14/2023       39.8       30.6       31.6       0.01%  
ˆOrthoQuest, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2%       3/12/2022       13.0       3.9       3.9       —%  
ˆCPN Motel, L.L.C. d/b/a American Motor Lodge     Accommodation       Term Loan       Prime plus 2.25%       4/30/2024       68.1       29.1       29.7       0.01%  
ˆTrack Side Collision & Tire, Inc.     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/16/2025       10.2       4.7       4.9       —%  
ˆDuttakrupa, LLC d/b/a Birmingham Motor Court     Accommodation       Term Loan       Prime plus 2.25%       9/8/2023       22.6       11.4       11.7       —%  
ˆDeesha Corporation, Inc. d/b/a Best Inn & Suites     Accommodation       Term Loan       Prime plus 2.25%       2/14/2025       53.2       26.1       26.7       0.01%  
ˆMaruti, Inc     Accommodation       Term Loan       Prime plus 2.25%       11/25/2024       50.4       24.1       24.7       0.01%  
Willington Hills Equestrian Center LLC     Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       10/19/2022       19.5       12.6       13.0       0.01%  
ˆLABH, Inc. t/a Ramada Ltd.     Accommodation       Term Loan       Prime plus 2.25%       9/27/2024       85.1       38.8       39.6       0.02%  
ˆRandall D. & Patricia D. Casaburi d/b/a Pat's Pizzazz     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       3/13/2023       15.7       6.6       6.8       —%  
ˆGain Laxmi, Inc. d/b/a Super 8 Motel     Accommodation       Term Loan       Prime plus 2.25%       5/31/2023       46.4       18.7       19.1       0.01%  
ˆNaseeb Corporation     Accommodation       Term Loan       Prime plus 2.25%       3/31/2024       62.9       28.2       28.7       0.01%  
ˆStillwell Ave Prep School     Social Assistance       Term Loan       Prime plus 2.75%       1/14/2023       17.1       5.9       6.1       —%  
ˆKaris, Inc.     Accommodation       Term Loan       Prime plus 2%       12/22/2023       34.1       12.6       12.7       0.01%  
ˆFive Corners, Ltd.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2019       19.5       4.0       4.1       —%  
ˆAlyssa Corp d/b/a Knights Inn     Accommodation       Term Loan       Prime plus 2.25%       9/30/2023       65.7       40.4       41.1       0.02%  
ˆBhailal Patel d/b/a New Falls Motel     Accommodation       Term Loan       Prime plus 2.75%       3/27/2023       22.9       3.3       3.4       —%  
ˆPegasus Automotive, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/23/2022       25.8       10.2       10.5       —%  
ˆDelyannis Iron Works     Fabricated Metal Product Manufacturing       Term Loan       6%       12/8/2022       68.4       13.5       13.9       0.01%  
ˆP. Agrino, Inc. d/b/a Andover Diner     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/18/2021       32.6       8.0       8.2       —%  
ˆRJS Service Corporation     Gasoline Stations       Term Loan       Prime plus 2.75%       8/20/2021       18.1       5.6       5.7       —%  
Total Performing SBA Unguaranteed Investments                           $ 258,726.7     $ 229,400.0     $ 231,250.4       92.41%  

 
 
See accompanying notes to these consolidated financial statements.

F-212


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Non-Performing SBA Unguaranteed Investments(3)
                                                                       
*ˆ200 North 8th Street Associates LLC and Enchanted Acres Farm     Food Manufacturing       Term Loan       6.25%       5/4/2028     $ 468.8     $ 469.3     $ 443.4       0.18%  
*ˆ214 North Franklin, LLC and Winter Ventures, Inc.     Nonstore Retailers       Term Loan       6%       11/29/2037       81.7       81.7             —%  
*ˆ636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co.     Primary Metal Manufacturing       Term Loan       Prime plus 2.75%       3/20/2039       70.8       71.0       68.0       0.03%  
*ˆA + Quality Home Health Care, Inc.     Ambulatory Health Care Services       Term Loan       6%       8/1/2016       1.3       1.3       1.2       —%  
*ˆAlejandro Rico d/b/a Rico Motors and Golden West Motel and Alrima Co Inc     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       11/25/2040       143.1       143.4       133.6       0.05%  
*ˆAl-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc     Motor Vehicle and Parts Dealers       Term Loan       6.25%       9/18/2040       129.3       129.5       105.3       0.04%  
*ˆAUM 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             —%  
*ˆB&B Fitness and Barbell, Inc.
d/b/a Elevations Health Club
    Amusement, Gambling, and Recreation Industries       Term Loan       6%       6/22/2035       193.9       194.2       197.3       0.08%  
*Baker Sales, Inc. d/b/a Baker Sales, Inc.     Nonstore Retailers       Term Loan       6%       3/29/2036       177.0       177.4       78.1       0.03%  
*ˆFieldstone Quick Stop LLC and Barber Investments LLC and Thadius M B     Gasoline Stations       Term Loan       6%       9/30/2038       646.4       648.0       255.3       0.10%  
*ˆBarber Investments LLC and Fieldstone Quickstop LLC     Gasoline Stations       Term Loan       6.25%       8/15/2039       146.0       146.3             —%  
*ˆChickamauga Properties, Inc., MSW Enterprises, LLP     Amusement, Gambling, and Recreation Industries       Term Loan       6.25%       12/22/2035       59.0       59.0       57.4       0.02%  
*ˆChickamauga Properties, Inc. and MSW Enterprises, LLP     Amusement, Gambling, and Recreation Industries       Term Loan       6.25%       10/19/2022       43.4       43.5             —%  
*ˆCustom Software, Inc. a Colorado Corporation d/b/a M-33 Access     Professional, Scientific, and Technical Services       Term Loan       6.25%       6/17/2021       276.5       277.2       39.3       0.02%  
*ˆCustom Software, Inc. a Colorado Corporation d/b/a M-33 Access     Broadcasting (except Internet)       Term Loan       6.25%       4/30/2022       94.1       94.3             —%  
*ˆD&G Capital LLC d/b/a Miami Grill 277     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/16/2025       86.6       86.8       59.8       0.02%  
*ˆDaniel S. Fitzpatrick d/b/a Danny's Mobile Appearance Reconditioning Service     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/29/2018       0.9       0.9       0.9       —%  
*ˆDanjam Enterprises, LLC d/b/a Ariel Dental Care     Ambulatory Health Care Services       Term Loan       6%       3/31/2035       125.8       126.0       128.0       0.05%  
*ˆDanjam Enterprises, LLC d/b/a Ariel Dental Care     Ambulatory Health Care Services       Term Loan       6%       3/29/2023       64.7       64.8       59.9       0.02%  
*ˆDean 1021 LLC d/b/a Pure Pita     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/29/2025       56.5       56.6       44.8       0.02%  
*ˆDill Street Bar and Grill Inc and WO Entertainment, Inc     Food Services and Drinking Places       Term Loan       6%       9/27/2027       78.2       78.4       2.7       —%  
*Dr. Francis E. Anders, DVM     Professional, Scientific, and Technical Services       Term Loan       6%       8/9/2015       1.6       1.6       1.6       —%  
*ˆE & I Holdings, LP & PA Farm Products, LLC     Food Manufacturing       Term Loan       6%       4/30/2030       4,874.0       4,923.2       2,803.5       1.12%  
*ˆENI 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       386.4       386.8       212.5       0.08%  

 
 
See accompanying notes to these consolidated financial statements.

F-213


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
*ˆENI Inc. d/b/a ENI Group, Inc     Other Information Services       Term Loan       Prime plus 2.75%       12/11/2025     $ 32.8     $ 32.8     $       —%  
*ˆEuroplast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       6%       9/26/2022       315.6       316.4       31.0       0.01%  
*ˆEuroplast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       6%       5/31/2023       155.2       155.6       87.7       0.04%  
*ˆEvent Mecca LLC     Other Information Services       Term Loan       6%       4/10/2023       12.4       12.4       9.5       —%  
*ˆEZ Towing, Inc.     Support Activities for Transportation       Term Loan       6%       1/31/2023       86.2       86.4       8.2       —%  
*ˆFrozen Treats of Hollywood FL, LLC d/b/a Sub Zero Ice Cream     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/22/2025       14.0       14.0             —%  
*ˆGator Communications Group LLC d/b/a Harvard Printing Group     Printing and Related Support Activities       Term Loan       6.25%       3/30/2022       232.9       233.5       27.6       0.01%  
*ˆGator Communications Group LLC d/b/a Harvard Printing Group     Printing and Related Support Activities       Term Loan       6.25%       4/25/2022       157.4       157.8             —%  
*ˆGator Communications Group, LLC d/b/a Harvard Printing Group     Printing and Related Support Activities       Term Loan       6.25%       3/27/2023       13.3       13.3             —%  
*ˆGrand Manor Realty, Inc. & Kevin LaRoe     Real Estate       Term Loan       6%       2/20/2023       18.9       19.0       18.4       0.01%  
*Guzman Group, LLC     Rental and Leasing Services       Term Loan       6%       1/30/2016       183.8       184.3       175.7       0.07%  
*Harrelson Materials Management, Inc     Waste Management and Remediation Services       Term Loan       6%       6/24/2021       464.0       465.2       24.6       0.01%  
*ˆHartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC     Ambulatory Health Care Services       Term Loan       6.25%       6/30/2026       478.9       480.1       76.4       0.03%  
*ˆHemingway Custom Cabinetry LLC     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/25/2025       198.1       198.6       130.6       0.05%  
*ˆHome Again Restaurant LLC     Food Services and Drinking Places       Term Loan       6.25%       6/30/2040       58.7       58.8       48.2       0.02%  
*ˆJ Olson Enterprises LLC and Olson Trucking Direct, Inc.     Truck Transportation       Term Loan       6%       6/28/2025       626.9       628.4       86.1       0.03%  
*ˆJ&M Concessions, Inc. d/b/a
A-1 Liquors
    Food and Beverage Stores       Term Loan       6.25%       3/3/2039       130.2       130.6       70.8       0.03%  
*ˆJ&M Concessions Inc d/b/a
A 1 Liquors
    Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/27/2025       79.8       80.0       22.9       0.01%  
*Jenny's Wunderland, Inc.     Social Assistance       Term Loan       6%       6/29/2036       149.7       150.1       38.4       0.02%  
*ˆKarykion, Corporation d/b/a Karykion Corporation     Professional, Scientific, and Technical Services       Term Loan       6%       6/28/2022       144.4       144.8       133.0       0.05%  
*ˆKantz LLC and Kantz Auto LLC d/b/a Kantz's Hometown Auto     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       10/29/2039       63.4       63.5       17.4       0.01%  
*ˆKids at Heart, LLC d/b/a Monster Mini Golf     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/22/2026       21.5       21.6       14.5       0.01%  
*Krishna of Orangeburg, Inc.     Accommodation       Term Loan       6%       2/20/2032       10.3       10.3       5.6       —%  
*ˆKup's Auto Spa Inc     Repair and Maintenance       Term Loan       6.25%       11/15/2038       365.9       366.8       374.4       0.15%  
*Kup’s Auto Spa, Inc.     Repair and Maintenance       Term Loan       6.25%       10/23/2025       54.6       54.7       53.4       0.02%  
*ˆLas Torres Development LLC
d/b/a Houston Event Centers
    Real Estate       Term Loan       6%       8/27/2028       51.0       51.0             —%  
*ˆM and C Renovations Inc     Construction of Buildings       Term Loan       Prime plus 2.75%       10/31/2024       14.4       14.4       11.1       —%  
*ˆMatchless Transportation LLC
d/b/a First Class Limo
    Transit and Ground Passenger Transportation       Term Loan       6.25%       8/3/2022       126.2       126.5       13.7       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-214


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
*ˆMilliken and Milliken, Inc. d/b/a Milliken Wholesale Distribution     Merchant Wholesalers, Durable Goods       Term Loan       6%       6/10/2036     $ 152.8     $ 152.9     $ 138.7       0.06%  
*ˆMojo Brands Media, LLC     Broadcasting (except Internet)       Term Loan       6%       8/28/2023       723.1       725.0       433.6       0.17%  
*Morris Glass and Construction     Specialty Trade Contractors       Term Loan       6%       3/7/2021       44.8       44.8             —%  
*ˆNew Paltz Dental Care, PLLC
d/b/a Ariel Dental Care
    Ambulatory Health Care Services       Term Loan       6%       6/19/2025       97.3       97.5       90.7       0.04%  
*Our Two Daughters L.L.C. d/b/a Washington's Restaurant     Food Services and Drinking Places       Term Loan       6%       6/18/2026       674.2       681.0       64.4       0.03%  
*ˆPlanet Verte, LLC d/b/a Audio Unlimited     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/20/2020       16.4       16.4       14.5       0.01%  
*ˆPlanet Verte, LLC d/b/a Audio Unlimited of Oceanside     Administrative and Support Services       Term Loan       Prime plus 2.75%       11/28/2019       16.1       16.1             —%  
*Professional Systems, LLC and Professional Cleaning     Administrative and Support Services       Term Loan       6%       7/30/2020       131.6       131.8       8.0       —%  
*ˆRoute 130 SCPI Holdings LLC and Route 130 SCPI Operations LLC     Food Services and Drinking Places       Term Loan       6.25%       9/30/2039       535.1       536.4       302.4       0.12%  
*Sheikh M Tariq d/b/a Selbyville Foodrite     Gasoline Stations       Term Loan       6%       8/26/2024       21.2       21.2             —%  
*ˆShivsakti, LLC d/b/a Knights
Inn
    Accommodation       Term Loan       6.25%       12/20/2032       8.0       8.0             —%  
*ˆSourceco Limited Liability Company     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/17/2025       57.4       57.5       54.4       0.02%  
*ˆSovereign Communications LLC     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/7/2024       707.3       709.1       670.0       0.27%  
*ˆSquare Deal Siding Company, LLC d/b/a Square Deal Siding Company     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/18/2025       20.2       20.3       19.1       0.01%  
*ˆSTK Ventures Inc d/b/a JP Dock Service & Supply     Specialty Trade Contractors       Term Loan       6%       5/9/2037       31.6       31.6       0.8       —%  
*ˆStormrider Inc d/b/a Shirley's Stormrider Inc     Truck Transportation       Term Loan       Prime plus 2.75%       9/23/2025       60.2       60.3       58.7       0.02%  
*ˆStormrider Inc d/b/a Shirley's Stormrider, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       11/25/2024       126.6       126.9       123.3       0.05%  
*Stormwise South Florida d/b/a Stormwise Shutters     Specialty Trade Contractors       Term Loan       6%       11/7/2036       110.9       111.2             —%  
*Tequila Beaches, LLC d/b/a Fresco Restaurant     Food Services and Drinking Places       Term Loan       6%       9/16/2021       0.2       0.2       0.2       —%  
*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             —%  
*ˆWill Zac Management LLC d/b/a Papa John's     Food Services and Drinking Places       Term Loan       6.25%       12/19/2024       42.4       42.5       41.4       0.02%  
*ˆWinter Ventures Inc and 214 N Franklin LLC     Nonstore Retailers       Term Loan       6%       4/29/2024       56.5       56.6             —%  
*ˆWinter Ventures Inc d/b/a Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       6%       12/23/2024       149.1       149.3             —%  
*ˆWinter Ventures Inc d/b/a Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       6%       4/3/2029       134.4       134.5             —%  
*ˆWired LLC and Moulison North Corporation     Specialty Trade Contractors       Term Loan       6.25%       6/30/2024       323.1       323.9       314.9       0.13%  

 
 
See accompanying notes to these consolidated financial statements.

F-215


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
*ˆWired LLC and Moulison North Corporation     Specialty Trade Contractors       Term Loan       6.25%       7/3/2024     $ 137.9     $ 138.3     $       —%  
Total Non-Performing SBA Unguaranteed Investments                           $ 17,247.2     $ 17,328.4     $ 8,506.9       3.40%  
Total SBA Unguaranteed Investments                           $ 275,973.9     $ 246,728.4     $ 239,757.3       95.81%  
Performing SBA Guaranteed Investments(4)
                                                                       
Old Dominion Transportation Group, Inc.     Nonstore Retailers       Term Loan       Prime plus 2.75%       6/28/2027     $ 4,533.0     $ 3,400.0     $ 3,756.7       1.50%  
Qycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/30/2027       305.0       228.8       255.3       0.10%  
J. T. O'Neill Company, L.L.C     Real Estate       Term Loan       Prime plus 2.75%       6/30/2027       100.0       85.0       94.8       0.04%  
Oakhill Farms, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2030       400.0       300.0       335.6       0.13%  
Veola's Day Spa and Wellness Center Inc.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2027       61.0       51.9       57.8       0.02%  
Bone Bar & Grill LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2042       293.8       220.4       250.4       0.10%  
BQRS, Inc. DBA Gresham Meineke Car Care Center     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/30/2027       250.0       187.5       209.3       0.08%  
J&M Civil Construction Services LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/30/2027       400.0       300.0       334.8       0.13%  
Roast Beef Levittown LLC dba Arby's     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/13/2026       1,826.3       1,369.7       1,520.4       0.61%  
JBK Truck Trailer and Bus Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/23/2042       246.1       184.6       209.7       0.08%  
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC dba Econo     Motion Picture and Sound Recording Industries       Term Loan       Prime plus 2.75%       3/27/2042       548.6       411.5       466.5       0.19%  
Swantown Inn & Spa LLC     Accommodation       Term Loan       Prime plus 2.75%       5/26/2042       29.5       22.1       25.1       0.01%  
Bear Creek Entertainment LLC dba The Woods at Bear Creek     Accommodation       Term Loan       Prime plus 2.75%       8/12/2041       1,116.4       837.3       948.2       0.38%  
Four Seasons Laser Center Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/26/2042       653.5       490.1       556.9       0.22%  
Scarlet Spartan Inc. dba FastSigns of Brighton     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/19/2027       150.4       112.8       125.8       0.05%  
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       354.5       261.7       297.1       0.12%  
Eickmann Management Group LLC dba Jimmy Johns of Dundee     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/17/2027       272.9       203.4       226.0       0.09%  
House of Bread & Coffee Corp dba Casa Do Pao     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/27/2042       554.0       410.5       466.0       0.19%  
Marvic Enterprises Inc dba Jordan's Liquor     Food and Beverage Stores       Term Loan       Prime plus 2.75%       2/10/2042       717.9       538.4       611.4       0.24%  
AP6 LLC and Amishp LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2042       435.2       325.5       369.4       0.15%  
Sneads Ferry Foods, Inc. dba DQ Grill & Chill     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/27/2042       733.9       550.4       623.5       0.25%  
1872 Rosecrans, LLC dba
Goodbar
    Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/9/2027       174.4       130.8       145.9       0.06%  
SG Linke LLC     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       5/12/2027       236.4       177.3       197.9       0.08%  

 
 
See accompanying notes to these consolidated financial statements.

F-216


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Foxhop Fitness, LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       6/28/2027     $ 167.2     $ 125.4     $ 139.9       0.06%  
Total SBA Guaranteed Performing Investments                           $ 14,560.0     $ 10,925.1     $ 12,224.4       4.88%  
Total SBA Unguaranteed and Guaranteed Investments                           $ 290,533.9     $ 257,653.5     $ 251,981.7       100.69%  
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       3,500.0       1.40%  
                Line of Credit       Prime plus 2.5%       August 2018       8,620.0       8,620.0       8,620.0       3.44%  
Newtek Technology Solutions, Inc.(11)     Data processing, hosting and related services.       100% Common
Stock
      —%                   8,384.0       17,500.0       6.99%  
*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       1.00%  
*PMTWorks Payroll, LLC(9)     Data processing, hosting and related services.       100% Membership
Interest
      —%                   725.1             —%  
                Term Loan       10% – 12%       Various
maturities
through
May 2018
      1,685.0       1,685.0             —%  
Secure CyberGateway Services, LLC(10),(18)     Data processing, hosting and related services.       66.7%
Membership
Interest
      —%                               —%  
                Term Loan       7%       June 2016       2,400.0       300.0             —%  
Small Business Lending,
LLC(12),(18)
    Securities, Commodity Contracts, and Other Financial Investments and Related Activities       100% Membership
Interest
      —%                         2,500.0       1.00%  
*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       5,400.0       2.16%  
Premier Payments LLC(11)     Data processing, hosting and related services.       100% Membership
Interest
      —%                   16,438.0       21,000.0       8.39%  
International Professional Marketing, Inc.(17)     Professional, Scientific, and Technical Services       100% Common
Stock
      —%                   11,120.0       11,120.0       4.44%  
                Line of Credit       Prime plus 0.5%       April 2018       250.0       250.0       250.0       0.10%  
SIDCO, LLC(17)     Professional, Scientific, and Technical Services       100% Membership
Interest
      —%                               —%  
Universal Processing Services of Wisconsin, LLC(11),(18)     Data processing, hosting and related services.       100% Membership
Interest
      —%                         64,000.0       25.58%  
Titanium Asset Management,
LLC(15)
    Administrative and Support Services       Term Loan       3%       July 2017       2,200.0       193.9             —%  

 
 
See accompanying notes to these consolidated financial statements.

F-217


 
 

TABLE OF CONTENTS

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

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
                100% Membership Interest       —%           $     $     $       —%  
Excel WebSolutions, LLC(16)     Data processing, hosting and related services.       Term Loan       10%       September 2018       1,020.2       661.2       614.5       0.25%  
             50% Membership
Interest
      —%                               —%  
Total Controlled Investments                           $ 17,295.2     $ 58,446.5     $ 137,004.5       54.75%  
Non-control/Non-affiliate Investments
                                                                       
Aitheras Aviation Group, LLC     Air Transportation       Term Loan       6.75%       8/14/2017     $ 3,254.8     $ 3,254.8     $ 3,254.8       1.30%  
Total Non-control/Non-affiliate Investments                           $ 3,254.8     $ 3,254.8     $ 3,254.8       1.30%  
Investments in Money Market Funds
                                                                       
UBS Select Treasury Institutional Fund – 0.74% yield                                         9.4       9.4       9.4       —%  
Peapack Gladstone High Yield IMMA – 0.30% yield                             25.9       25.9       25.9       0.01%  
Total Money Market Funds                           $ 35.3     $ 35.3     $ 35.3       0.01%  
Total Investments                           $ 311,119.2     $ 319,390.1     $ 392,276.3       156.76%  

ˆ 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 4.00% as of June 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.

 
 
See accompanying notes to these consolidated financial statements.

F-218


 
 

TABLE OF CONTENTS

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

(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.)
(17) 100% owned by Newtek Business Services Holdco 2, Inc. (a subsidiary of Newtek Business Services Corp.).
(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 June 30, 2017, 4.9% of total assets are non-qualifying assets.

 
 
See accompanying notes to these consolidated financial statements.

F-219


 
 

TABLE OF CONTENTS

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%  
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%  

 
 
See accompanying notes to these consolidated financial statements.

F-220


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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%  
ˆNew 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%  
ˆThe 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%  
Noso Development LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       12/1/2026       75.0       75.0       64.0       0.03%  
ˆEricon, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/1/2041       726.1       726.1       717.8       0.34%  
ˆPebble 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       —%  
ˆQuick 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%  
ˆUsman 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-221


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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%  
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%  
ˆJ.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%  
ˆJ. 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%  
ˆPanther 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%  
ˆJ. 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%  
ˆBovill Creative, LLC     Real Estate       Term Loan       Prime plus 2.75%       11/9/2041       281.2       281.1       291.7       0.14%  
ˆBig 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%  
ˆDyer 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%  
ˆRich'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%  
ˆFine Line Interiors, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       11/4/2041       87.5       87.5       90.8       0.04%  
ˆPig-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%  
ˆVeracruz 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-222


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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%  
ˆBloomquist Communications Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       10/31/2026       60.0       59.6       50.9       0.02%  
ˆMoolchan 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%  
ˆWoodstock 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%  
ˆPatina 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%  
ˆFibAire Communications, LLC     Telecommunications       Term Loan       Prime plus 2.75%       10/27/2026       107.5       106.8       97.6       0.05%  
ˆBonita 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%  
ˆEmpire 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%  
ˆGold Wind Logistics LLC     Truck Transportation       Term Loan       Prime plus 2.75%       10/20/2041       175.0       175.0       181.6       0.09%  
ˆSpeaker 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%  
ˆMaine Service Corp     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       10/13/2026       206.3       204.3       190.3       0.09%  
ˆJustin Partlow     Insurance Carriers and Related Activities       Term Loan       Prime plus 2.75%       10/13/2026       19.5       19.4       16.5       0.01%  
ˆReliable Recovery Services LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       10/7/2026       112.5       111.8       101.4       0.05%  
ˆAilky 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%  
ˆWyspen 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%  
ˆJJA 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%  
ˆMegaPhase, LLC     Computer and Electronic Product Manufacturing       Term Loan       Prime plus 2.75%       9/30/2026       150.0       148.2       141.8       0.07%  
ˆSeaway 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%  
ˆAdelworth 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%  
ˆLas 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-223


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆThunderdome 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%  
ˆParagon 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%  
ˆGraphics, 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%  
ˆBeadon Inc     Food and Beverage Stores       Term Loan       Prime plus 2.75%       9/28/2026       22.5       22.2       22.0       0.01%  
ˆCD Game Exchange Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       9/28/2026       22.5       22.2       19.0       0.01%  
ˆCNC 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%  
ˆKyle 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%  
ˆLuna 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%  
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%  
ˆLuv 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%  
ˆSarah 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%  
ˆTPFC, LLC dba The Picture Frame Company     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/26/2041       58.8       58.6       58.1       0.03%  
ˆRidge 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       —%  
ˆPeopleBest Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/26/2026       15.0       14.8       12.6       0.01%  
ˆMr. 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%  
ˆB4 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%  
ˆInformationTelevision 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%  
ˆKids 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%  
ˆGRA Financial Services Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/22/2026       12.0       11.9       10.1       —%  
ˆWrecking 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%  
ˆCuppiecakes LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/21/2041       22.5       22.4       22.1       0.01%  
ˆBenoit's Towing and Recovery
LLC
    Support Activities for Transportation       Term Loan       Prime plus 2.75%       9/20/2026       12.0       11.9       10.3       —%  
ˆConsulting 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-224


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBrittany 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%  
ˆEyncon LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/16/2041       50.0       49.9       49.8       0.02%  
ˆTresa 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       —%  
ˆThe 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%  
ˆRich'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%  
ˆAtlantic 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%  
ˆMetropet Dog Center, Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/13/2041       109.3       108.9       109.2       0.05%  
ˆMarquis Cattle Company     Animal Production and Aquaculture       Term Loan       Prime plus 2.75%       9/13/2026       50.0       49.7       50.1       0.02%  
ˆBingham 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%  
ˆArtisan 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%  
ˆSRA Mechanicial Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/6/2041       43.8       43.6       45.0       0.02%  
ˆSandia 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%  
ˆAnimal 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%  
ˆSuncrest Stone Products LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2026       586.8       576.0       514.8       0.25%  
ˆClark Realty LLC     Real Estate       Term Loan       Prime plus 2.75%       8/29/2041       237.5       236.5       225.0       0.11%  
ˆRaem 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%  
ˆSuncrest Stone Products LLC     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       8/29/2041       649.6       646.9       596.9       0.29%  
ˆTAGR Inc dba Miami Grill 137 and John Nakis     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       8/26/2026       106.8       104.8       91.7       0.04%  
ˆWarren 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%  
ˆAlbert 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%  
ˆDean 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%  
ˆRosmel Pools Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026       22.5       22.1       19.3       0.01%  
ˆAvery Management Inc. dba Whetstone Upholstery     Repair and Maintenance       Term Loan       Prime plus 2.75%       8/25/2026       10.7       10.5       8.9       —%  
ˆTR 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%  
ˆTabadesa 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-225


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTim'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%  
ˆLuv 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%  
ˆ2 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%  
ˆGrayson O Company     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/10/2041       625.0       622.4       639.7       0.31%  
ˆCharal 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%  
ˆPCNKC 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%  
ˆPaul 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%  
ˆR 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%  
ˆThe Hungry Rhino LLC     Real Estate       Term Loan       Prime plus 2.75%       7/29/2041       76.3       75.8       74.9       0.04%  
ˆNicolette 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%  
ˆUSA 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%  
ˆLittle Tree Huggers Child Care
LLC
    Social Assistance       Term Loan       Prime plus 2.75%       7/29/2041       140.0       139.2       143.9       0.07%  
ˆ303 Tower Drive LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       7/29/2041       400.3       398.0       403.4       0.19%  
ˆKJCKD 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%  
ˆBig 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%  
ˆ676 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%  
ˆMacIver 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%  
ˆJ 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%  
ˆIntrepid Trinity LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       7/28/2041       62.5       62.1       62.4       0.03%  
ˆApple 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%  
ˆKidtastic 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%  
ˆGF 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%  
ˆEPEC 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%  
ˆPinco 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%  
ˆPeckett's Inc     Crop Production       Term Loan       Prime plus 2.75%       7/27/2041       225.0       224.7       233.0       0.11%  

 
 
See accompanying notes to these consolidated financial statements.

F-226


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆJAG 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%  
ˆThe 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%  
ˆGino 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%  
ˆMy Sainath Inc dba Motel 6     Accommodation       Term Loan       Prime plus 2.75%       7/22/2041       305.4       303.7       308.6       0.15%  
ˆRobert 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%  
ˆJ 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%  
ˆRobert 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%  
ˆBillingsworks 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       —%  
ˆBe Beautiful LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       7/14/2041       66.5       66.1       67.2       0.03%  
ˆTakeuchi 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%  
ˆJacob 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%  
ˆRM 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%  
ˆDino 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%  
ˆP 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%  
ˆSoregard Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       6/30/2041       278.8       276.8       260.2       0.12%  
ˆMartin Inventory Management LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/30/2026       105.8       102.5       102.8       0.05%  
ˆDesert Tacos LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/30/2026       98.8       98.3       91.3       0.04%  
ˆVMA Technologies LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/30/2026       22.5       21.8       18.4       0.01%  
ˆCorning 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%  
ˆCastone Creations Inc     Nonmetallic Mineral Product Manufacturing       Term Loan       Prime plus 2.75%       6/29/2026       87.5       84.8       74.7       0.04%  
ˆWGI, LLC dba Williams Grant
Inn
    Accommodation       Term Loan       Prime plus 2.75%       6/29/2041       131.3       130.3       128.8       0.06%  
ˆO.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%  
ˆKWG 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%  
ˆNinsa LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       6/29/2041       112.5       111.7       115.5       0.06%  

 
 
See accompanying notes to these consolidated financial statements.

F-227


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆE & 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%  
ˆMaidPro Marin dba MaidPro     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/28/2026       17.6       17.0       14.3       0.01%  
ˆEdge Pest Control LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       6/27/2026       750.0       726.9       612.0       0.29%  
ˆAll 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%  
ˆIsland 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%  
ˆJumbomarkets 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%  
ˆYellow 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%  
ˆEl 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%  
ˆLong 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%  
ˆVisual 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%  
ˆSNS 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%  
ˆItalian 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%  
ˆEvergreen 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%  
ˆBagelicious, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/17/2026       54.6       52.9       44.8       0.02%  
ˆT 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%  
ˆNKJ Lusby Donuts LLC     Food and Beverage Stores       Term Loan       Prime plus 2.75%       6/16/2026       22.5       21.8       18.4       0.01%  
ˆWinegirl Wines LLC     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       6/16/2026       11.3       10.9       10.9       0.01%  
ˆBlue 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%  
ˆJai-Alexia Consulting, Inc.     Couriers and Messengers       Term Loan       Prime plus 2.75%       6/15/2026       11.8       11.5       9.6       —%  
ˆPumpkin 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%  
ˆStrag 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%  
ˆLuv 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%  
ˆRefoleen 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%  
ˆVBGB 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%  
ˆScimTech 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       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-228


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLarry 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%  
ˆSolvit 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%  
ˆAP5 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%  
ˆATI Jet Inc     Air Transportation       Term Loan       Prime plus 2.75%       5/31/2026       518.8       499.9       441.7       0.21%  
ˆFarmer 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%  
ˆPremier 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%  
ˆMNM 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%  
ˆMersada Holdings LLC     Nonstore Retailers       Term Loan       Prime plus 2.75%       5/26/2026       337.5       325.0       326.1       0.16%  
ˆJack 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%  
ˆSouthwest Division Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       5/26/2026       8.3       7.9       7.1       —%  
ˆInternational Kitchen Supply LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/25/2026       186.8       179.8       160.3       0.08%  
ˆPennyLion 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%  
ˆGroth 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%  
ˆIsland 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%  
ˆPowerspec Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/24/2026       87.5       84.3       71.0       0.03%  
ˆHorseshoe Barbecue, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/23/2029       15.0       14.2       14.4       0.01%  
ˆPro Auto Repair LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/20/2026       7.5       7.2       6.9       —%  
ˆElderfriend 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       —%  
ˆCM Lab Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/20/2026       172.6       169.5       156.1       0.07%  
ˆNational 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%  
ˆJ&A Laundromat Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       5/18/2026       67.5       65.0       56.3       0.03%  
ˆHBA 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%  
ˆDedicated Incorporated     Administrative and Support Services       Term Loan       Prime plus 2.75%       5/18/2041       46.5       46.1       45.9       0.02%  
ˆStudio 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%  
ˆFJN Catering Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2041       262.5       260.7       266.9       0.13%  

 
 
See accompanying notes to these consolidated financial statements.

F-229


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLED Lighting Enterprises LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       5/13/2026     $ 22.5     $ 21.7     $ 18.8       0.01%  
ˆJ. Harris Trucking, LLC     Truck Transportation       Term Loan       Prime plus 2.75%       5/13/2026       60.0       41.6       37.4       0.02%  
ˆLuv 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%  
ˆPumpkin 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%  
ˆThe 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%  
ˆSabir 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%  
ˆGator 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%  
ˆWarner 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%  
ˆKeller, 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%  
ˆMarc 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%  
ˆMay-Craft Fiberglass Products
Inc
    Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       4/29/2041       247.5       245.0       253.3       0.12%  
ˆAlpha Omega Trucking LLC     Truck Transportation       Term Loan       Prime plus 2.75%       4/29/2041       175.8       174.7       180.6       0.09%  
ˆScoler 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%  
ˆLoriet LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       4/29/2026       7.5       7.2       6.1       —%  
ˆLa 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%  
ˆEuro 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%  
ˆHard 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%  
ˆEmpowerschool 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%  
ˆInner 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%  
ˆAtlantic 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%  
ˆCostume 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%  
ˆPecos Inn LLC dba Econo Lodge     Accommodation       Term Loan       Prime plus 2.75%       4/28/2041       677.5       670.8       678.0       0.32%  
ˆNorth American Manufacturing Company     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/28/2026       160.0       153.1       153.6       0.07%  
ˆShepherd 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       —%  
ˆKnowledge 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%  
ˆGreen Country Filter Manufacturing LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       4/27/2026       84.3       80.6       69.8       0.03%  
ˆAccent Comfort Services, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/26/2026       90.0       86.1       72.5       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-230


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆHomecare Casa Rhoda 123 Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2%       4/26/2041     $ 675.0     $ 667.4     $ 642.3       0.31%  
ˆMcIntosh 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%  
ˆAutomotive 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%  
ˆAAA 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       —%  
ˆJande 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%  
ˆMiguel 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%  
ˆLE & 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%  
ˆSushiya Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       4/12/2026       87.5       83.8       73.6       0.04%  
ˆSierra 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%  
ˆWaterfalls 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%  
ˆKNS Early Learning Academy LLC     Social Assistance       Term Loan       Prime plus 2.75%       4/6/2041       51.0       50.5       49.4       0.02%  
ˆDuke's Cleaners Inc     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/31/2026       47.0       44.7       41.0       0.02%  
ˆCameo 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%  
ˆFarhad 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%  
ˆChristian 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%  
ˆVehicle 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%  
ˆMen 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%  
ˆGill 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%  
ˆDana 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%  
ˆNOSO Development, LLC     Construction of Buildings       Term Loan       Prime plus 2.75%       3/30/2026       187.5       178.2       149.9       0.07%  
ˆWyldewood Cellars, Inc.     Beverage and Tobacco Product Manufacturing       Term Loan       Prime plus 2.75%       3/30/2041       986.8       985.8       936.7       0.45%  
ˆGordon 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%  
ˆBeale 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%  
ˆTom 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%  
ˆMTS Car Service LLC     Transit and Ground Passenger Transportation       Term Loan       Prime plus 2.75%       3/30/2026       10.5       10.0       8.4       —%  
ˆAtlantis 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%  
ˆBarrocas 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-231


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆVinmar 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%  
ˆLust 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%  
ˆMarathon Engineering
Corporation
    Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/28/2041       45.0       44.5       44.7       0.02%  
ˆPHCDC1 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%  
ˆReNew 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%  
ˆRCB Enterprises, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/25/2026       56.3       53.5       45.0       0.02%  
ˆRevolution 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%  
ˆExcel RP Inc     Machinery Manufacturing       Term Loan       Prime plus 2.75%       3/25/2026       125.0       118.8       106.7       0.05%  
ˆLowgap Grocery & Grill LLC     General Merchandise Stores       Term Loan       Prime plus 2.75%       3/24/2041       167.5       165.6       171.1       0.08%  
ˆActKnowledge, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/24/2026       125.0       118.8       119.1       0.06%  
ˆInternational Construction Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       3/24/2041       50.0       49.5       48.4       0.02%  
ˆFlooring 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%  
ˆActon 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%  
ˆThe Youth Fountain LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       3/23/2026       47.5       45.2       38.0       0.02%  
ˆMagnation 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%  
ˆgrowth.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%  
ˆPrecious 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%  
ˆMedia 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%  
ˆPro Tech Technology LLC     Support Activities for Transportation       Term Loan       Prime plus 2.75%       3/18/2026       7.5       7.1       6.0       —%  
ˆTaylors 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%  
ˆERT 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%  
ˆKekoa 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%  
ˆMariam 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%  
ˆBrian 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%  
ˆAuto 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-232


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆDemand 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%  
ˆLAN Doctors Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/16/2026       55.0       52.3       52.4       0.03%  
ˆEvergreen 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%  
ˆK 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%  
ˆR & 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%  
ˆHEWZ, 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%  
ˆMustafa 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%  
ˆCountry 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%  
ˆWilban LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/11/2026       105.0       100.2       94.8       0.05%  
ˆABCs & 123s Infant and Child Care Center LP     Social Assistance       Term Loan       Prime plus 2.75%       3/11/2026       11.3       10.7       9.0       —%  
ˆAccuair 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%  
ˆDupre Capital LLC dba Fastsigns     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       3/11/2026       58.4       55.5       46.7       0.02%  
ˆMagill 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%  
ˆFayette 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%  
ˆState Painting & Decorating Co., Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/10/2026       103.8       98.6       83.0       0.04%  
ˆB.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%  
ˆStep Up Academy of the Arts
LLC
    Educational Services       Term Loan       Prime plus 2.75%       3/9/2026       8.0       7.6       6.4       —%  
ˆA & A Auto Care LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/9/2026       12.2       11.5       11.0       0.01%  
ˆFaith 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%  
ˆSwerve Salon LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/8/2026       79.0       75.1       63.2       0.03%  
ˆJ & W Hardwood Flooring Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       3/7/2026       7.5       7.1       6.0       —%  
ˆLabmates 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%  
ˆHueston and Company CPA LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       3/4/2026       8.3       7.7       6.7       —%  
ˆAlmost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       3/3/2026       50.0       47.5       46.3       0.02%  
ˆMiles 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%  
ˆJohnson & 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%  
ˆLiving Essentials HVAC Corp     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/28/2026       15.0       14.2       12.1       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-233


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆConsulting 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       —%  
ˆDoxa 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%  
ˆThe 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%  
ˆDrug 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%  
ˆPowerpits 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%  
ˆBlackstones Hairdressing LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/23/2026       52.0       49.4       42.0       0.02%  
ˆAaradhya 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%  
ˆR-No-Landscaping LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/19/2026       8.3       7.8       6.7       —%  
ˆBER 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%  
ˆR & K Contracting Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       2/18/2026       15.8       15.0       14.5       0.01%  
ˆPacific 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%  
ˆB 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%  
ˆGilmore 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%  
ˆEi3 Corporation     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/12/2026       326.9       308.6       309.5       0.15%  
ˆJersey 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%  
ˆBase USA, Inc.     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       2/2/2026       50.0       47.2       47.4       0.02%  
ˆNowatzke 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%  
ˆZouk 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%  
ˆTammy 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       —%  
ˆSuzyQue'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%  
ˆWildflour Bakery & Cafe LLC     Social Assistance       Term Loan       Prime plus 2.75%       1/28/2026       62.5       58.6       57.2       0.03%  
ˆNew 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%  
ˆOak Tree Storage LLC     Other Information Services       Term Loan       Prime plus 2.75%       1/19/2026       78.8       73.8       63.4       0.03%  
ˆGendron 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%  
ˆDolarian 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%  
ˆLemonberry 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%  
ˆMCF Forte LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/29/2025       18.8       17.5       14.9       0.01%  

 
 
See accompanying notes to these consolidated financial statements.

F-234


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆPanditos LLC dba White Lotus Home     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       12/28/2025     $ 15.9     $ 14.8     $ 12.5       0.01%  
ˆBright 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%  
ˆV2 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%  
ˆRidge 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%  
ˆ800 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%  
ˆOptima Health Care Inc     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       12/23/2025       62.5       58.2       58.4       0.03%  
ˆB&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%  
ˆJoyce 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%  
ˆThe 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%  
ˆPremier 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%  
ˆHattingh 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%  
ˆG.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%  
ˆTrip 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%  
ˆJay 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%  
ˆAccent 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%  
ˆAbbondanza 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%  
ˆCapital Scrap Metal LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/18/2025       36.0       33.5       28.7       0.01%  
ˆLabmates LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       12/18/2040       162.5       159.9       165.1       0.08%  
ˆSourceco Limited Liability Company     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/17/2025       62.5       58.3       51.0       0.02%  
ˆMustafa 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%  
ˆLearning Skills LLC and Christopher Shrope     Educational Services       Term Loan       Prime plus 2.75%       12/17/2025       10.8       10.1       8.5       —%  
ˆNew 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%  
ˆMoments 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%  
ˆSwalm 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%  
ˆJAG 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%  
ˆD&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%  

 
 
See accompanying notes to these consolidated financial statements.

F-235


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆAbitino'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%  
ˆSDA 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%  
ˆEvans & 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%  
ˆBasista 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%  
ˆDC 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%  
ˆTri-State Remodeling & Investments, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/11/2025       15.9       14.8       14.3       0.01%  
ˆAlexandra 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%  
ˆAGR 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%  
ˆENI 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%  
ˆCares, Inc dba Dumpling Grounds Day Care Center     Social Assistance       Term Loan       Prime plus 2.75%       12/10/2025       7.5       7.0       6.9       —%  
ˆCustom Exteriors, Inc.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/9/2025       100.0       93.2       81.5       0.04%  
ˆSushiya, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/8/2025       108.8       101.3       88.9       0.04%  
ˆMy 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%  
ˆFood & 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%  
ˆBlue Ox Trucking Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       12/4/2025       12.3       11.5       11.5       0.01%  
ˆLC 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%  
ˆAmerican 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%  
ˆTariq, LLC dba 76 Food Mart     Gasoline Stations       Term Loan       Prime plus 2.75%       12/2/2040       375.0       368.9       371.4       0.18%  
ˆ401 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%  
ˆDelta Aggregate, LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       11/30/2025       100.0       95.4       95.7       0.05%  
ˆBlock 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%  
ˆHurshell 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%  
ˆJapp 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%  
ˆSmokeyard 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%  
ˆAlejandro 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%  
ˆState 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-236


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMedeiros 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%  
ˆDWeb Studio, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/25/2025       11.3       10.4       8.7       —%  
ˆSambella 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%  
ˆPlay and Learn Child Care and School Inc     Social Assistance       Term Loan       Prime plus 2.75%       11/23/2025       11.1       10.3       10.3       —%  
ˆRonny 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%  
ˆHaven 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%  
ˆCNYP 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%  
ˆS.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%  
ˆKey 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%  
ˆHolloway & 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%  
ˆRDT Enterprises, L.L.C.     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/12/2025       22.5       20.8       19.5       0.01%  
ˆE.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%  
ˆGreen 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%  
ˆJoseph 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%  
ˆJumbomarkets 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%  
ˆBisson 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%  
ˆTop 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%  
ˆL.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%  
ˆWindsor Direct Distribution LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       10/26/2025       14.3       13.0       11.0       0.01%  
ˆFinancial Network Recovery     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/26/2025       40.0       36.8       30.9       0.01%  
ˆInsurance 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%  
ˆJacksonville Beauty Institute Inc.     Educational Services       Term Loan       Prime plus 2.75%       10/23/2025       50.0       45.9       38.6       0.02%  
ˆWerthan Packaging Inc.     Paper Manufacturing       Term Loan       Prime plus 2.75%       10/14/2025       1,162.5       1,104.0       1,030.3       0.49%  
ˆTannehill 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%  
ˆADMO 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-237


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆSCJEN 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%  
ˆNaeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/30/2025       125.0       114.0       95.8       0.05%  
ˆAccent 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%  
ˆRecycling 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%  
ˆBarub 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%  
ˆR.H. Hummer Jr., Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       9/30/2025       375.0       354.3       338.4       0.16%  
ˆBat 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%  
ˆBinky's Vapes LLC     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       9/30/2025       22.5       20.5       17.2       0.01%  
ˆJoyce 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%  
ˆGreensward of Marco Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       9/28/2040       87.5       85.7       84.4       0.04%  
ˆRIM 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%  
ˆThe 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%  
ˆSouth 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%  
ˆHemingway 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%  
ˆDaniel 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%  
ˆSandlot 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%  
ˆYachting Solutions LLC     Motor Vehicle and Parts Dealers       Term Loan       Prime plus 2.75%       9/25/2040       962.5       942.4       908.0       0.43%  
ˆPrestigious LifeCare for Seniors LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       9/25/2025       9.8       9.0       8.2       —%  
ˆSt 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%  
ˆHagerstown 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%  
ˆJ.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%  
ˆRutledge 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%  
ˆFinish 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%  
ˆJ3K 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%  
ˆStormrider 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%  
ˆFrozen 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-238


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆNova Solutions Inc     Furniture and Related Product Manufacturing       Term Loan       Prime plus 2.75%       9/22/2040     $ 320.0     $ 313.3     $ 311.9       0.15%  
ˆPine Belt Wood Products LLC     Forestry and Logging       Term Loan       Prime plus 2.75%       9/22/2040       163.8       160.3       146.9       0.07%  
ˆIIoka 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%  
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/21/2025       50.0       45.6       40.6       0.02%  
ˆMiJoy 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       —%  
ˆVanderhoof LLC dba Soxfords     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/18/2025       15.9       14.5       12.2       0.01%  
ˆNaeem Khan LTD     Apparel Manufacturing       Term Loan       Prime plus 2.75%       9/17/2025       125.0       114.0       95.8       0.05%  
ˆImport 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%  
ˆFirstVitals 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%  
ˆJohnson 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%  
ˆAlmost Home Daycare LLC     Social Assistance       Term Loan       Prime plus 2.75%       9/11/2025       62.5       57.0       56.3       0.03%  
ˆVeliu LLC dba FASTSIGNS #15901     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       9/10/2025       50.0       46.2       40.0       0.02%  
ˆB 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%  
ˆGardner'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%  
ˆAIG Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/4/2040       363.8       356.1       338.8       0.16%  
ˆEmpower Autism Academy     Social Assistance       Term Loan       Prime plus 2.75%       9/4/2040       685.0       670.7       692.4       0.33%  
ˆHigher Grounds Community Coffeehouse, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/2/2025       8.3       7.5       6.6       —%  
ˆDelray Scrap Recycling LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       8/31/2025       22.5       20.1       16.9       0.01%  
ˆThe 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%  
ˆLAN Doctors Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/28/2025       81.3       73.6       66.8       0.03%  
ˆElite 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%  
ˆZephyr 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%  
ˆJ 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%  
ˆTrading Group 3 Inc     Nonstore Retailers       Term Loan       Prime plus 2.75%       8/28/2025       50.0       45.3       38.0       0.02%  
ˆB 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%  
ˆGod 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%  
ˆ3000 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-239


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆGDP 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%  
ˆScreenmobile Management Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       8/14/2025       47.0       42.5       36.1       0.02%  
ˆGold Jet Corp.     Couriers and Messengers       Term Loan       Prime plus 2.75%       8/14/2025       68.3       65.3       59.2       0.03%  
ˆSKJ 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%  
ˆLP 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%  
ˆAdvanced Machine & Technology, Inc.     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       7/29/2025       90.3       81.1       74.8       0.04%  
ˆPauley 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%  
ˆBeale 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%  
ˆForever & 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%  
ˆC& 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%  
ˆPooh'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%  
ˆSmart 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%  
ˆFree 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%  
ˆMurrayville 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%  
ˆUnion 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%  
ˆThe Smile Place LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2040       283.9       276.6       282.4       0.14%  
ˆBJ'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%  
ˆJonathan 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%  
ˆThrifty 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%  
ˆAll 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%  
ˆDanny 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%  
ˆAnglin 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%  
ˆAdvanced 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%  
ˆSummit 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%  
ˆMyclean Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/29/2025       15.9       14.2       12.7       0.01%  
ˆE & 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-240


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆSofRep, 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%  
ˆJihan 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%  
ˆTJU-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%  
ˆCEM 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%  
ˆWolf 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%  
ˆOhs 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%  
ˆEvinger 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%  
ˆAmboy 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%  
ˆRichards 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%  
ˆRJI Services, Inc.     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/23/2025       22.5       19.9       17.8       0.01%  
ˆReal 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%  
ˆPM 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%  
ˆKRN Logistics, LLC, Newsome Trucking, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       6/19/2025       543.5       484.8       458.5       0.22%  
ˆInverted 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%  
ˆSquare 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%  
ˆFlooring 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%  
ˆAM 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%  
ˆNelson 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%  
ˆMirage 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%  
ˆBizzare 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%  
ˆAnturio 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%  
ˆEldredge 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%  
ˆNicor LLC dba Fibrenew Sacramento     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/5/2022       13.8       11.4       10.2       —%  
ˆChitalian 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%  
ˆViAr 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%  
ˆVideo 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-241


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMedworxs LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       6/3/2025     $ 125.0     $ 111.5     $ 100.4       0.05%  
ˆDTM Parts Supply Inc.     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       6/2/2025       62.8       56.0       50.1       0.02%  
ˆXCESSIVE 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       —%  
ˆGod 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%  
ˆVillela CPA PL     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       5/27/2025       9.0       8.0       7.3       —%  
ˆPen 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%  
ˆDouglas 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%  
ˆCapstone 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%  
ˆ15 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%  
ˆE-Z Box Storage, Inc.     Real Estate       Term Loan       Prime plus 2.75%       5/11/2025       89.3       73.3       74.0       0.04%  
ˆGuard Dogs MFS LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       5/8/2025       65.0       57.5       51.8       0.02%  
ˆGeorge 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%  
ˆSouth 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%  
ˆMatthew 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%  
ˆCares 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%  
ˆRDRhonehouse 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%  
ˆOrchid 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%  
ˆRagazza 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%  
ˆDiamond Solutions LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       4/21/2025       22.5       19.3       17.3       0.01%  
ˆGiacchino Maritime Consultants
Inc
    Personal and Laundry Services       Term Loan       Prime plus 2.75%       4/17/2025       22.5       19.8       17.7       0.01%  
ˆSound 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%  
ˆCarolina 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%  
ˆFaramarz 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%  
ˆAdvance 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%  
ˆT 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%  
ˆHAVANA 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-242


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMid-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%  
ˆCopper 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%  
ˆDelta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       3/30/2025       90.0       83.7       84.5       0.04%  
ˆSunset Marine Resort LLC and GoXpeditions LLC     Accommodation       Term Loan       Prime plus 2.75%       3/27/2040       301.8       292.6       305.6       0.15%  
ˆShorr 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%  
ˆSouth 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%  
ˆShellhorn 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%  
ˆForesite 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%  
ˆGeo 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%  
ˆJoyce 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%  
ˆZero-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%  
ˆCarpet 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%  
ˆLoriet LLC     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       3/24/2025       12.0       10.5       9.4       —%  
ˆShelton 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%  
ˆJaymie 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%  
ˆR & 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%  
ˆMMS 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%  
ˆRoyal 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%  
ˆBND 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%  
ˆDouglas 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%  
ˆLuigi'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       —%  
ˆCalhoun 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%  
ˆRoad 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%  
ˆBaystate Firearms and Training, LLC     Educational Services       Term Loan       Prime plus 2.75%       2/27/2025       63.4       54.7       49.3       0.02%  
ˆKingseal 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%  
ˆPace Motor Lines, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       2/26/2025       66.2       57.3       57.8       0.03%  

 
 
See accompanying notes to these consolidated financial statements.

F-243


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆNelson Financial Services LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       2/24/2025     $ 12.5     $ 10.8     $ 9.6       —%  
ˆKiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       2/19/2040       61.8       59.7       59.6       0.03%  
ˆTriangle 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%  
ˆSilva 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%  
ˆ740 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%  
ˆKostekos 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%  
ˆDuCharme 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%  
ˆLimameno 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%  
ˆPalmabak 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%  
ˆJung Design Inc     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       1/20/2022       8.4       6.5       5.8       —%  
ˆGrand 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%  
ˆBear 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%  
ˆEvans and Paul LLC     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       12/30/2024       223.8       190.5       188.1       0.09%  
ˆFHJE 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%  
ˆFirst 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%  
ˆBowlerama 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%  
ˆ401 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%  
ˆThe 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%  
ˆThermoplastic 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%  
ˆCarolina 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%  
ˆAtlantis 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%  
ˆBeale 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%  
ˆMM 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%  
ˆThe 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%  
ˆB.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%  
ˆB & 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-244


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆAll 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%  
ˆKemmer 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%  
ˆTrading Group 3, Inc.     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/26/2024       22.5       19.0       17.0       0.01%  
ˆThe 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%  
ˆTeamnewman 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%  
ˆDeRidder Chiropractic LLC     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       11/25/2024       13.2       11.1       11.2       0.01%  
ˆModern Manhattan LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       11/25/2024       220.0       185.8       167.8       0.08%  
ˆStormrider 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%  
ˆMeridian Hotels, LLC dba Best Western Jonesboro     Accommodation       Term Loan       Prime plus 2.75%       11/25/2039       228.0       220.6       230.3       0.11%  
ˆLegacy 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%  
ˆJ&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%  
ˆDC 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%  
ˆMLM 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%  
ˆJEJE 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%  
ˆJoey O's LLC and Jennifer Olszewski     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       11/7/2024       13.1       0.9       0.8       —%  
ˆHeartland 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%  
ˆGolden Transaction Corporation dba Bleh Sunoco     Gasoline Stations       Term Loan       Prime plus 2.75%       10/30/2039       156.7       150.7       155.4       0.07%  
ˆSeelan Inc dba Candleridge
Market
    Gasoline Stations       Term Loan       Prime plus 2.75%       10/27/2039       90.5       87.0       87.3       0.04%  
ˆ185 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%  
ˆNavdeep 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%  
ˆ3 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%  
ˆOne Hour Jewelry Repair Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       10/14/2024       20.6       17.2       15.4       0.01%  
ˆDNT Storage and Properties LLC     Real Estate       Term Loan       Prime plus 2.75%       10/10/2039       101.8       97.8       101.0       0.05%  
ˆCapitol 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%  
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       10/10/2024       187.5       157.1       145.6       0.07%  
ˆReturn 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-245


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆBoilermaker Industries LLC dba PostNet     Administrative and Support Services       Term Loan       Prime plus 2.75%       10/9/2024     $ 18.8     $ 5.7     $ 5.8       —%  
ˆSmith 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%  
ˆDoctors 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%  
ˆMichael 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%  
ˆSumad 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%  
ˆRoccos 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%  
ˆKeller 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%  
ˆOrange 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%  
ˆThe 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%  
ˆKeys 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%  
ˆGordon E Rogers dba Stonehouse Motor Inn     Accommodation       Term Loan       Prime plus 2.75%       9/26/2039       57.5       55.2       57.6       0.03%  
ˆAuto 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%  
ˆColts 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%  
ˆNorth 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%  
ˆ6 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%  
ˆR 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%  
ˆAndrene'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%  
ˆPlay 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%  
ˆRyan 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%  
ˆModern 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%  
ˆTavern 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%  
ˆRDT Enterprises LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       9/15/2027       162.8       143.6       143.5       0.07%  
ˆAnimal 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%  
ˆKW 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%  
ˆIndy 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%  
ˆB&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%  

 
 
See accompanying notes to these consolidated financial statements.

F-246


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆFeel 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%  
ˆDelta Aggregate LLC     Mining (except Oil and Gas)       Term Loan       Prime plus 2.75%       8/28/2039       911.3       862.4       900.0       0.43%  
ˆLamjam 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%  
ˆOrange County Cleaning Inc     Administrative and Support Services       Term Loan       Prime plus 2.75%       8/27/2024       41.3       34.0       30.3       0.01%  
ˆQycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/26/2024       121.0       99.7       94.5       0.05%  
ˆAtlas 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%  
ˆKatie 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%  
ˆS&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%  
ˆAlpha Preparatory Academy LLC     Social Assistance       Term Loan       Prime plus 2.75%       8/15/2039       145.2       139.7       145.8       0.07%  
ˆAlmost 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%  
ˆAGV 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%  
ˆiFood, 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%  
ˆ575 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%  
ˆL&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%  
ˆHoneyspot 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%  
ˆMiss 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%  
ˆAMG 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%  
ˆHighway Striping Inc     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       6/30/2024       53.1       43.0       42.7       0.02%  
ˆLisle 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%  
ˆHoneyspot 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%  
ˆiFood, 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%  
ˆFHJE 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%  
ˆZinger 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%  
ˆJPM 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%  
ˆNikobella 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%  
ˆBig 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-247


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ510 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%  
ˆNirvi 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%  
ˆHotels 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%  
ˆGlobal Educational Delivery Services LLC     Educational Services       Term Loan       Prime plus 2.75%       6/16/2024       60.0       49.2       50.2       0.02%  
ˆRainbow Dry Cleaners     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/13/2024       122.5       99.1       98.7       0.05%  
ˆNVR 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%  
ˆSico & 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%  
ˆSujata 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%  
ˆLong Island Barber + Beauty
LLC
    Educational Services       Term Loan       Prime plus 2.75%       6/2/2039       55.5       53.0       55.7       0.03%  
ˆCJR 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%  
ˆPocono 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%  
ˆEGM 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%  
ˆR. 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%  
ˆWilton 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%  
ˆJonesboro 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%  
ˆUSI 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%  
ˆBay 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%  
ˆHae 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%  
ˆMoochie's LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       5/13/2024       100.5       81.6       80.6       0.04%  
ˆThe 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%  
ˆAS 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%  
ˆENI 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%  
ˆGerami 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%  
ˆComplete Body & Paint, Inc.     Repair and Maintenance       Term Loan       Prime plus 2.75%       4/23/2039       20.8       19.9       21.1       0.01%  
ˆIsland 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%  
ˆWilshire Media Systems Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       4/17/2024       186.3       148.3       146.7       0.07%  
ˆ1899 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-248


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆHodges 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%  
ˆDantanna'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%  
ˆLittle 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%  
ˆRDT Enterprises, LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2028       141.2       123.9       128.3       0.06%  
ˆLittle 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%  
ˆEagle 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%  
ˆKemmer, 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%  
ˆWilban LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       3/28/2039       427.5       407.2       429.7       0.21%  
ˆLake 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%  
ˆHascher Gabelstapler Inc     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/26/2024       143.3       114.5       115.4       0.06%  
ˆKnowledge 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%  
ˆCormac 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%  
ˆ636 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%  
ˆKinisi, 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%  
ˆSE 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%  
ˆTortilla King Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2039       216.9       206.9       216.0       0.10%  
ˆTortilla King, Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       3/14/2029       1,033.1       926.1       943.6       0.45%  
ˆBowl 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%  
ˆAvayaan2 LLC dba Island Cove     Gasoline Stations       Term Loan       Prime plus 2.75%       3/7/2039       157.5       149.6       157.8       0.08%  
ˆOnofrio'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%  
ˆR & 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%  
ˆSummit 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%  
ˆ952 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%  
ˆChoe 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%  
ˆFaith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       2/28/2039       214.2       203.6       213.3       0.10%  

 
 
See accompanying notes to these consolidated financial statements.

F-249


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆ96 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%  
ˆJWB 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%  
ˆAwesome 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%  
ˆ986 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%  
ˆSovereign Communications LLC     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       2/7/2024       907.8       712.6       702.2       0.34%  
ˆSarah 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%  
ˆ3Fmanagement 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%  
ˆJDR 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%  
ˆIcore 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%  
ˆCarl 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%  
ˆNutmeg 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%  
ˆCLU 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%  
ˆShane 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%  
ˆKK International Trading Corporation     Merchant Wholesalers, Nondurable Goods       Term Loan       Prime plus 2.75%       12/23/2028       190.0       165.0       169.4       0.08%  
ˆKurtis 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%  
ˆMosley 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%  
ˆLefont 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%  
ˆPLES 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%  
ˆTAK Properties LLC and Kinderland Inc     Social Assistance       Term Loan       Prime plus 2.75%       12/18/2038       405.0       383.2       402.7       0.19%  
ˆAny 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%  
ˆTOL 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%  
ˆ8 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%  
ˆ920 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%  
ˆDKB Transport Corp     Truck Transportation       Term Loan       Prime plus 2.75%       12/5/2038       138.8       131.1       139.2       0.07%  

 
 
See accompanying notes to these consolidated financial statements.

F-250


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆFirm 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%  
ˆSpectrum 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%  
ˆBVIP 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%  
ˆEco-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%  
ˆWallace 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%  
ˆAcuCall LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       11/21/2023       15.8       11.9       11.6       0.01%  
ˆSeven 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%  
ˆKids 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%  
ˆYousef 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%  
ˆHowell 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       —%  
ˆPolpo 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%  
ˆTwinsburg Hospitality Group LLC dba Comfort Suites     Accommodation       Term Loan       Prime plus 2.75%       10/31/2038       945.0       893.7       937.8       0.45%  
ˆMid-Land Sheet Metal Inc     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       10/31/2038       137.5       129.6       136.9       0.07%  
ˆMaster 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%  
ˆJanice 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%  
ˆ1 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%  
ˆMeridian Hotels LLC dba Best Western Jonesboro     Accommodation       Term Loan       Prime plus 2.75%       10/29/2038       664.5       625.3       664.1       0.32%  
ˆNew 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%  
ˆGreenbrier Technical Services,
Inc
    Repair and Maintenance       Term Loan       Prime plus 2.75%       10/24/2023       240.1       164.4       167.5       0.08%  
ˆClairvoyant 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%  
ˆKelly 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%  
ˆCencon 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%  
ˆOnofrios 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%  
ˆDiscount 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%  
ˆFirst 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-251


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆLenoir 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%  
ˆTop 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%  
ˆMitchellville 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%  
ˆGabrielle Realty, LLC     Gasoline Stations       Term Loan       Prime plus 2.75%       9/27/2038       757.6       711.3       746.0       0.36%  
ˆAnthony 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%  
ˆEastside 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%  
ˆSoutheast 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%  
ˆHJ & 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%  
ˆKiddie Steps 4 You Inc.     Social Assistance       Term Loan       Prime plus 2.75%       9/25/2038       89.3       85.6       89.5       0.04%  
ˆDiamond Memorials Incorporated     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       9/25/2023       14.3       9.7       9.5       —%  
ˆSerious-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%  
ˆFaith Memorial Chapel LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       9/20/2038       268.4       252.8       266.1       0.13%  
ˆWestville Seafood LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       9/19/2038       112.3       105.4       110.7       0.05%  
ˆMaynard 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%  
ˆGrafio 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%  
ˆSound Manufacturing Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       9/12/2028       54.8       46.9       47.7       0.02%  
ˆThe 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%  
ˆProspect Kids Academy Inc     Educational Services       Term Loan       Prime plus 2.75%       9/11/2038       124.3       116.4       122.8       0.06%  
ˆAlma 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%  
ˆB 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%  
ˆSchmaltz 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%  
ˆExcel RP Inc     Machinery Manufacturing       Term Loan       Prime plus 2.75%       8/30/2023       130.3       96.0       97.5       0.05%  
ˆIlOKA 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%  
ˆACI Northwest Inc.     Heavy and Civil Engineering Construction       Term Loan       Prime plus 2.75%       8/30/2023       906.3       452.8       459.3       0.22%  
ˆSpectrum Radio Fairmont, LLC     Broadcasting (except Internet)       Term Loan       Prime plus 2.75%       8/30/2023       187.5       164.3       167.0       0.08%  
ˆGulfport 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-252


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆRamard 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%  
ˆRM 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%  
ˆJSIL 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%  
ˆIsland 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%  
ˆCaribbean 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%  
ˆ209 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%  
ˆMajestic 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%  
ˆDaniel 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       —%  
ˆAngkor Restaurant Inc     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       7/19/2038       93.0       87.1       92.1       0.04%  
ˆHarbor 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%  
ˆTri 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%  
ˆMorning 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%  
ˆMaxiflex LLC     Miscellaneous Manufacturing       Term Loan       Prime plus 2.75%       6/28/2023       153.5       110.5       112.9       0.05%  
ˆGIA 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%  
ˆJRA 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%  
ˆ2161 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%  
ˆCBlakeslee 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%  
ˆKDP 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%  
ˆElite Structures Inc     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       6/12/2038       932.8       847.9       904.0       0.43%  
ˆWillowbrook 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%  
ˆAbsolute 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%  
ˆRKP Service dba Rainbow
Carwash
    Repair and Maintenance       Term Loan       Prime plus 2.75%       5/31/2023       300.0       216.7       218.1       0.10%  
ˆRXSB, 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%  
ˆGregory 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-253


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆRyan 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%  
ˆPowerWash 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%  
ˆPeanut Butter & Co., Inc.     Food Manufacturing       Term Loan       Prime plus 2.75%       4/30/2023       100.0       70.3       70.6       0.03%  
ˆBrothers International Desserts     Food Manufacturing       Term Loan       Prime plus 2.75%       4/26/2023       230.0       162.6       164.9       0.08%  
ˆKidrose, LLC dba Kidville Riverdale     Educational Services       Term Loan       Prime plus 2.75%       4/22/2023       78.8       56.3       56.9       0.03%  
ˆVernon & 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%  
ˆ1258 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%  
ˆCapital 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%  
ˆMRM 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%  
ˆNeyra 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%  
ˆA & 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%  
ˆXela 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%  
ˆAmerican 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%  
ˆMichael A. and Heather R. Welsch dba Art & FrameEtc.     Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       3/22/2038       67.5       62.7       66.6       0.03%  
ˆM & 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%  
ˆTruth 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%  
ˆJ. 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%  
ˆStellar Environmental LLC     Waste Management and Remediation Services       Term Loan       Prime plus 2.75%       3/18/2023       56.3       39.4       40.1       0.02%  
ˆSound 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%  
ˆGolden Gate Lodging LLC     Accommodation       Term Loan       Prime plus 2.75%       3/12/2038       115.0       106.8       113.4       0.05%  
ˆBakhtar 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%  
ˆRiver Club Golf Course Inc dba The River Club     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2038       475.2       440.2       467.2       0.22%  
ˆOsceola 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%  
ˆJava Warung, LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/19/2038       51.0       47.3       50.3       0.02%  
ˆNancy & 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%  
ˆOrient 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-254


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆKnits R Us, Inc. dba NYC Sports     Textile Mills       Term Loan       Prime plus 2.75%       2/11/2038     $ 125.0     $ 116.0     $ 123.6       0.06%  
ˆNorth 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%  
ˆMJD 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%  
ˆSherill 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%  
ˆElegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       12/31/2022       97.5       66.0       66.2       0.03%  
ˆMacho 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%  
ˆWI130, 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%  
ˆBabie 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%  
ˆJohn 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%  
ˆPolpo 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%  
ˆMartin 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%  
ˆUnited Woodworking, Inc     Wood Product Manufacturing       Term Loan       6%       12/20/2022       17.3       11.7       11.9       0.01%  
ˆPioneer 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%  
ˆEzzo 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%  
ˆThe 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%  
ˆCheryle 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%  
ˆAegis 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%  
ˆDaniel 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%  
ˆD&L Rescources, Inc. dba The
UPS Store
    Miscellaneous Store Retailers       Term Loan       Prime plus 2.75%       11/27/2022       9.8       6.5       6.5       —%  
ˆRichmond 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%  
ˆDRV 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%  
ˆClean 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       —%  
ˆU & 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%  
ˆPioneer Windows Manufacturing Corp, Pioneer Windows     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       11/21/2022       275.0       184.0       186.0       0.09%  
ˆR & 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%  
ˆSt 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-255


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆHi-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%  
ˆReidville Hydraulics Mfg Inc dba Summit     Machinery Manufacturing       Term Loan       Prime plus 2.75%       11/2/2037       265.9       245.2       258.7       0.12%  
ˆBig 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%  
ˆLA 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%  
ˆATC 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%  
ˆUniversity 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%  
ˆForno 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%  
ˆLaSalle 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%  
ˆO'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%  
ˆMichael 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%  
ˆAJK 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%  
ˆNew 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%  
ˆSuncoast 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%  
ˆHofgard & 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%  
ˆGeorgia Safe Sidewalks LLC     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       7/27/2022       15.0       9.4       9.5       —%  
ˆScoville 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%  
ˆCentral 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%  
ˆWPI, LLC     Transportation Equipment Manufacturing       Term Loan       Prime plus 2.75%       6/29/2024       129.5       92.0       94.2       0.05%  
ˆHavana 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%  
ˆJenkins-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%  
ˆKIND-ER-ZZ Inc dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/15/2022       50.0       31.2       31.6       0.02%  
ˆGraphish 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%  
ˆALF, 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%  
ˆCraig 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%  
ˆLefont 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%  
ˆChristou 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-256


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆTracey 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%  
ˆBisson Transportation, Inc.     Truck Transportation       Term Loan       Prime plus 2.75%       5/7/2037       588.1       553.0       588.9       0.28%  
ˆBisson 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%  
ˆFair 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%  
ˆTanner 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       —%  
ˆZane 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%  
ˆIndoor Playgrounds Limited Liability Company dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       4/5/2022       19.5       8.4       8.6       —%  
ˆBrandywine 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%  
ˆAccess Staffing, LLC     Administrative and Support Services       Term Loan       Prime plus 2.75%       3/30/2022       187.5       113.6       114.8       0.05%  
ˆWillow 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%  
ˆManuel 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%  
ˆShweiki 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%  
ˆATC Fitness, LLC     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       2/28/2022       10.2       6.1       6.2       —%  
ˆATI Jet, Inc.     Air Transportation       Term Loan       Prime plus 2.75%       12/28/2026       852.8       643.1       664.9       0.32%  
ˆJ. 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%  
ˆK'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%  
ˆ15 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%  
ˆM & 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%  
ˆTaylor Transport, Inc     Truck Transportation       Term Loan       Prime plus 2.75%       12/8/2021       515.5       219.2       223.1       0.11%  
ˆThomas 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%  
ˆMRM 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%  
ˆK9 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%  
ˆ28 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%  
ˆPTK, 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%  
ˆ39581 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%  
ˆ39581 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-257


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆRobert 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%  
ˆBig 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%  
ˆPolymer 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%  
ˆEquity 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%  
ˆBryan 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%  
ˆSBR 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%  
ˆMichael 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%  
ˆQycell Corporation     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       8/19/2021       187.5       97.1       98.2       0.05%  
ˆTrademark 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%  
ˆValiev 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%  
ˆA & 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%  
ˆLaHoBa, 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%  
ˆKelly Chon LLC dba Shi-Golf     Merchant Wholesalers, Durable Goods       Term Loan       Prime plus 2.75%       7/29/2021       17.5       6.9       7.0       —%  
ˆMTV 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%  
ˆLavertue 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%  
ˆLisle 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%  
ˆPierce 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%  
ˆMajor Queens Body & Fender Corp     Repair and Maintenance       Term Loan       Prime plus 2.75%       6/10/2021       28.6       15.2       15.4       0.01%  
ˆJ&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%  
ˆPeanut 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%  
ˆDemand 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       —%  
ˆModern 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%  
ˆMusic 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%  
ˆProfile 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-258


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆNorthwind 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%  
ˆMichael 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%  
ˆActknowledge, Inc dba Actknowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       3/21/2021       57.3       29.0       29.4       0.01%  
ˆFood & 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       —%  
ˆKey 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%  
ˆStephen 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%  
ˆSuzyQue’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%  
ˆLittle 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%  
ˆSeagate 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%  
ˆPatrageous 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%  
ˆShree 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%  
ˆLodin 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%  
ˆRobert 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%  
ˆAny 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%  
ˆWest 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%  
ˆLincoln Park Physical Therapy     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       10/20/2020       43.5       19.9       20.2       0.01%  
ˆK9 Bytes, Inc & Epazz, Inc     Publishing Industries (except Internet)       Term Loan       Prime plus 2.75%       9/30/2020       18.5       8.7       8.8       —%  
ˆElan 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%  
ˆSuccess 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%  
ˆModern Manhattan, LLC     Furniture and Home Furnishings Stores       Term Loan       Prime plus 2.75%       9/20/2020       204.0       92.5       93.5       0.04%  
ˆDirk'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       —%  
ˆRudy & 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%  
ˆNewsome Trucking Inc and Kevin Newsome     Truck Transportation       Term Loan       Prime plus 2.75%       9/2/2035       423.1       208.3       221.6       0.11%  
ˆCalifornia College of Communications, Inc.     Educational Services       Term Loan       Prime plus 2.75%       11/2/2020       172.5       79.7       80.5       0.04%  

 
 
See accompanying notes to these consolidated financial statements.

F-259


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆDDLK 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       —%  
ˆPlanet 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%  
ˆMembers Only Software     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       8/30/2020       40.3       17.6       17.8       0.01%  
ˆActKnowledge, Inc dba ActKnowledge     Personal and Laundry Services       Term Loan       Prime plus 2.75%       6/30/2020       50.0       21.4       21.6       0.01%  
ˆI-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%  
ˆWeaverVentures, Inc dba The UPS Store     Postal Service       Term Loan       Prime plus 2.75%       7/28/2020       23.8       10.3       10.5       0.01%  
ˆCJ Park Inc. dba Kidville Midtown West     Educational Services       Term Loan       Prime plus 2.75%       6/25/2020       26.4       8.9       9.0       —%  
ˆZouk, 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%  
ˆTanner 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%  
ˆM & 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%  
ˆExcel 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       —%  
ˆValleyStar, Inc. dba BrightStar Healthcare     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/28/2020       7.5       3.2       3.2       —%  
ˆDiag, LLC dba Kidville     Educational Services       Term Loan       Prime plus 2.75%       6/21/2020       37.5       15.6       15.8       0.01%  
ˆM & 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%  
ˆNew 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       —%  
ˆCocoa 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       —%  
ˆVortex Automotive LLC     Repair and Maintenance       Term Loan       Prime plus 2.75%       3/5/2035       76.6       65.8       70.1       0.03%  
ˆATC 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       —%  
ˆLahoba, 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%  
ˆMusic 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%  
ˆAnimal 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%  
ˆDavid 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       —%  
ˆCMA 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%  
ˆKMC 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%  
ˆDemand Printing Solutions, Inc.     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       12/12/2019       10.0       3.6       3.7       —%  
ˆPlanet 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-260


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆDemand 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%  
ˆSupreme Screw Products     Fabricated Metal Product Manufacturing       Term Loan       Prime plus 2.75%       4/17/2019       308.2       87.6       88.4       0.04%  
ˆGray Tree Service, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2018       50.0       12.4       12.5       0.01%  
ˆEnvy Salon & Spa LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       12/4/2018       20.3       4.9       4.9       —%  
ˆGourmet to You, Inc.     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       2/28/2019       12.1       3.3       3.3       —%  
ˆThe 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%  
ˆGrapevine Professional Services, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       1/22/2019       8.2       2.0       2.0       —%  
ˆInflate World Corporation     Amusement, Gambling, and Recreation Industries       Term Loan       Prime plus 2.75%       9/30/2018       7.5       1.3       1.3       —%  
ˆPeter 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%  
ˆDream 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%  
ˆCBA 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%  
ˆGilbert Chiropractic Clinic, Inc.     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/7/2018       22.5       4.0       4.1       —%  
ˆD & D's Divine Beauty School of Esther, LLC     Educational Services       Term Loan       6%       8/1/2031       57.7       51.3       54.1       0.03%  
ˆDaniel 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       —%  
ˆBurks & 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%  
ˆZog Inc.     Other Information Services       Term Loan       6%       3/17/2018       97.5       62.1       62.3       0.03%  
ˆSaan 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%  
ˆEnewhere Custom Canvas, LLC     Textile Product Mills       Term Loan       Prime plus 2.75%       2/15/2018       12.0       1.9       1.9       —%  
ˆA & 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%  
ˆAll American Printing     Printing and Related Support Activities       Term Loan       Prime plus 2.75%       10/26/2032       69.8       37.6       39.8       0.02%  
ˆSeo's Paradise Cleaners, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/19/2018       9.8       0.6       0.6       —%  
ˆMargab, Inc. dba Smoothie King     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       12/28/2017       44.0       5.7       5.7       —%  
ˆRCB Enterprises, Inc.     Administrative and Support Services       Term Loan       Prime plus 2.75%       12/18/2017       21.2       3.4       3.4       —%  
ˆTimothy 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       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-261


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆParties 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%  
ˆTammy's Bakery, Inc. dba Tammy's Bakery     Food Manufacturing       Term Loan       Prime plus 2.75%       12/10/2017       71.8       9.9       10.0       —%  
ˆMaria 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       —%  
ˆMJ Mortgage & Tax Services,
Inc.
    Credit Intermediation and Related Activities       Term Loan       Prime plus 2.75%       11/14/2017       6.9       0.4       0.4       —%  
ˆKings Laundry, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.75%       10/30/2017       64.5       7.1       7.1       —%  
ˆQuality 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       —%  
ˆLouis 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       —%  
ˆ1911 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%  
ˆMetano 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%  
ˆMala 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       —%  
ˆTwietmeyer Dentistry PA     Ambulatory Health Care Services       Term Loan       Prime plus 2.75%       6/30/2017       148.9       9.9       9.9       —%  
ˆWater Works Laundromat, LLC     Personal and Laundry Services       Term Loan       Prime plus 2.25%       9/7/2027       267.3       184.0       187.1       0.09%  
ˆDave 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%  
ˆNo Thirst Software LLC     Professional, Scientific, and Technical Services       Term Loan       Prime plus 2.75%       4/26/2017       6.8       0.2       0.2       —%  
ˆCCIPTA, LLC     Clothing and Clothing Accessories Stores       Term Loan       Prime plus 2.75%       1/17/2017       47.0       0.2       0.2       —%  
ˆGill 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%  
ˆSpain Street LLC     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       6/29/2017       63.0       0.9       0.9       —%  
ˆKyoshi Enterprises, LLC     Educational Services       Term Loan       Prime plus 2.75%       12/29/2016       22.5                   —%  
ˆNora 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       —%  
ˆSmooth Grounds, Inc.     Food Services and Drinking Places       Term Loan       7.75%       12/31/2018       64.5       30.6       30.8       0.01%  
ˆFran-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%  
ˆHead To Toe Personalized Pampering, Inc.     Personal and Laundry Services       Term Loan       Prime plus 2.75%       1/27/2031       52.0       9.0       9.5       —%  
ˆMaxwell Place, LLC     Nursing and Residential Care Facilities       Term Loan       6.5%       12/31/2018       1,076.8       772.5       779.2       0.37%  
ˆChristopher F. Bohon & Pamela D. Bohon     Social Assistance       Term Loan       Prime plus 2.75%       10/28/2026       14.2       3.2       3.4       —%  
ˆShree Om Lodging, LLC dba Royal Inn     Accommodation       Term Loan       Prime plus 2.75%       5/2/2030       333.3       64.1       67.4       0.03%  
ˆPedzik's Pets, LLC     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       3/31/2030       53.5       9.0       9.4       —%  
ˆNancy 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-262


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆMoonlight 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%  
ˆMcCallister 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%  
ˆComputer 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       —%  
ˆChong 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%  
ˆWest 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%  
ˆCenter-Mark Car Wash, Ltd     Specialty Trade Contractors       Term Loan       Prime plus 2.75%       5/18/2024       221.3       27.9       28.7       0.01%  
ˆShuttle 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%  
ˆMin Hui Lin     Food Services and Drinking Places       Term Loan       Prime plus 2.75%       1/30/2028       134.3       17.5       18.2       0.01%  
ˆDelta 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%  
ˆAuto Sales, Inc.     Motor Vehicle and Parts Dealers       Term Loan       6%       8/17/2023       75.0       7.8       8.0       —%  
ˆB & 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%  
ˆRAB Services, Inc. & Professional Floor Installations     Specialty Trade Contractors       Term Loan       Prime plus 2.5%       1/31/2023       62.5       7.0       7.1       —%  
ˆRalph Werner dba Werner Transmissions     Gasoline Stations       Term Loan       Prime plus 2.75%       12/29/2021       26.6       2.3       2.4       —%  
ˆTaste 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       —%  
ˆM. Krishna, Inc. dba
Super 8 Motel
    Accommodation       Term Loan       Prime plus 2%       3/20/2025       250.0       9.4       9.5       —%  
ˆRobin 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%  
ˆOrthoQuest, P.C.     Ambulatory Health Care Services       Term Loan       Prime plus 2%       3/12/2022       56.8       4.3       4.3       —%  
ˆCPN 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%  
ˆTrack Side Collision & Tire, Inc.     Plastics and Rubber Products Manufacturing       Term Loan       Prime plus 2.75%       6/16/2025       44.8       4.9       5.0       —%  
ˆDuttakrupa, LLC dba Birmingham Motor Court     Accommodation       Term Loan       Prime plus 2.25%       9/8/2023       98.8       12.2       12.3       0.01%  
ˆDeesha Corporation, Inc. dba Best Inn & Suites     Accommodation       Term Loan       Prime plus 2.25%       2/14/2025       250.0       27.4       27.8       0.01%  
ˆMaruti, 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%  
ˆLABH, Inc.     Accommodation       Term Loan       Prime plus 2.25%       9/27/2024       555.0       40.8       41.3       0.02%  
ˆRandall 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       —%  

 
 
See accompanying notes to these consolidated financial statements.

F-263


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆGain Laxmi, Inc. dba
Super 8 Motel
    Accommodation       Term Loan       Prime plus 2.25%       5/31/2023     $ 202.5     $ 20.0     $ 20.2       0.01%  
ˆNaseeb Corporation     Accommodation       Term Loan       Prime plus 2.25%       3/31/2024       402.5       29.8       30.2       0.01%  
ˆStillwell Ave Prep School     Social Assistance       Term Loan       Prime plus 2.75%       1/14/2023       72.0       6.4       6.5       —%  
ˆKaris, Inc.     Accommodation       Term Loan       Prime plus 2%       12/22/2023       148.8       13.4       13.4       0.01%  
ˆFive Corners, Ltd.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/11/2019       85.0       4.7       4.8       —%  
ˆAlyssa Corp dba Knights Inn     Accommodation       Term Loan       Prime plus 2.25%       9/30/2023       350.0       42.0       42.4       0.02%  
ˆBhailal Patel dba New Falls
Motel
    Accommodation       Term Loan       Prime plus 2.75%       3/27/2023       100.0       3.7       3.8       —%  
ˆPegasus Automotive, Inc.     Gasoline Stations       Term Loan       Prime plus 2.75%       12/23/2022       112.5       10.9       11.2       0.01%  
ˆDelyannis Iron Works     Fabricated Metal Product Manufacturing       Term Loan       6%       12/8/2022       16.0       1.0       1.1       —%  
ˆP. 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       —%  
ˆGolden Elevator Co., Inc.     Support Activities for Agriculture and Forestry       Term Loan       Prime plus 2.75%       1/31/2022       50.0       0.4       0.4       —%  
ˆRJS 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)
                                                                 
ˆ200 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%  
ˆ214 North Franklin, LLC and Winter Ventures, Inc.     Nonstore Retailers       Term Loan       6%       11/29/2037       81.7       81.7       29.7       0.01%  
ˆA + 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       —%  
ˆAl-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%  
ˆAUM 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%  
ˆB&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%  
ˆFieldstone 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%  
ˆBarber 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             —%  

 
 
See accompanying notes to these consolidated financial statements.

F-264


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
Bwms Management, LLC     Food Services and Drinking Places       Term Loan       0%       3/1/2018     $ 5.1     $ 5.1     $ 4.9       —%  
ˆChickamauga 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%  
ˆChickamauga Properties, Inc. and MSW Enterprises, LLP     Amusement, Gambling, and Recreation Industries       Term Loan       6.25%       10/19/2022       43.4       43.5             —%  
ˆCustom 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%  
ˆCustom Software, Inc. a Colorado Corporation dba M-33 Access     Broadcasting (except Internet)       Term Loan       6.25%       4/30/2022       94.1       94.3             —%  
ˆDanjam Enterprises, LLC dba Ariel Dental Care     Ambulatory Health Care Services       Term Loan       6%       3/31/2035       172.8       173.0       158.3       0.08%  
ˆDanjam Enterprises, LLC dba Ariel Dental Care     Ambulatory Health Care Services       Term Loan       6%       3/29/2023       64.7       64.8       58.6       0.03%  
ˆDC 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%  
ˆDC 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%  
ˆDean 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%  
ˆDill 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       —%  
ˆEuroplast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       6%       9/26/2022       316.1       316.9       36.5       0.02%  
ˆEuroplast Ltd     Plastics and Rubber Products Manufacturing       Term Loan       6%       5/31/2023       155.2       155.6       114.8       0.05%  
ˆEvent Mecca LLC     Other Information Services       Term Loan       6%       4/10/2023       12.6       12.6       9.4       —%  
ˆEZ Towing, Inc.     Support Activities for Transportation       Term Loan       6%       1/31/2023       123.2       123.5       107.1       0.05%  
ˆGator 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%  
ˆGator Communications Group LLC dba Harvard
Printing Group
    Printing and Related Support Activities       Term Loan       6.25%       4/25/2022       157.4       157.8             —%  
ˆGator Communications Group, LLC dba Harvard
Printing Group
    Printing and Related Support Activities       Term Loan       6.25%       3/27/2023       13.3       13.3             —%  
ˆGrand 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%  
ˆHamer 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%  
ˆHartford 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%  
ˆHome Again Restaurant LLC     Food Services and Drinking Places       Term Loan       6.25%       6/30/2040       58.7       58.8       52.9       0.03%  
ˆJ Olson Enterprises LLC and Olson Trucking Direct, Inc.     Truck Transportation       Term Loan       6%       6/28/2025       647.5       649.1       226.8       0.11%  

 
 
See accompanying notes to these consolidated financial statements.

F-265


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆJ&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%  
ˆJ&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%  
ˆKarykion, Corporation dba Karykion Corporation     Professional, Scientific, and Technical Services       Term Loan       6%       6/28/2022       144.4       144.8       140.4       0.07%  
ˆKantz 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       —%  
ˆKup'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%  
ˆLas Torres Development LLC dba Houston Event Centers     Real Estate       Term Loan       6%       8/27/2028       51.0       51.0       4.0       —%  
ˆM and C Renovations Inc     Construction of Buildings       Term Loan       Prime plus 2.75%       10/31/2024       15.9       16.0       12.1       0.01%  
ˆMatchless 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%  
ˆMilliken 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%  
ˆMojo 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       —%  
ˆNew 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%  
ˆE & 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%  
ˆNB & 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       —%  
ˆRoute 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%  
ˆSeven 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             —%  
ˆShivsakti, LLC dba Knights Inn     Accommodation       Term Loan       6.25%       12/20/2032       69.7       69.9       62.9       0.03%  
ˆSTK 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       —%  
ˆThe 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       —%  
ˆWill 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%  

 
 
See accompanying notes to these consolidated financial statements.

F-266


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
ˆWinter Ventures Inc and 214 N Franklin LLC     Nonstore Retailers       Term Loan       6%       4/29/2024     $ 56.5     $ 56.6     $       —%  
ˆWinter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       6%       12/23/2024       149.1       149.3             —%  
ˆWinter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall     Nonstore Retailers       Term Loan       6%       4/3/2029       134.4       134.5             —%  
ˆWired LLC and Moulison North Corporation     Specialty Trade Contractors       Term Loan       6.25%       6/30/2024       325.2       326.0       306.6       0.15%  
ˆWired 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%  
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%  

 
 
See accompanying notes to these consolidated financial statements.

F-267


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

               
               
Portfolio Company   Industry   Type of Investment   Interest
Rate(2)
  Maturity   Principal   Cost   Fair Value   % of
Net Assets
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%  
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%  

 
 
See accompanying notes to these consolidated financial statements.

F-268


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
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%  

ˆ 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.

 
 
See accompanying notes to these consolidated financial statements.

F-269


 
 

TABLE OF CONTENTS

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
DECEMBER 31, 2016
(In Thousands)

(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) 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.

 
 
See accompanying notes to these consolidated financial statements.

F-270


 
 

TABLE OF CONTENTS

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

NOTE 1 — DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:

Newtek Business Services Corp. (the “Company” or “Newtek”) 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 (the “Taxable Subsidiaries”), which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (the “Code”).

The following wholly-owned subsidiaries are consolidated in the financial statements of the Company:

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’s Annual Report for the year ended December 31, 2016 on Form 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 certain footnotes and other information normally included in financial

F-271


 
 

TABLE OF CONTENTS

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

NOTE 1 — DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:  – (continued)

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 results of operations for an interim period may not give a true indication of the results for the entire year. The December 31, 2016 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. Certain prior period amounts have been reclassified to conform to the current period presentation.

Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:

Fair Value

The Company applies fair value accounting to certain of its financial instruments in accordance with Accounting Standards Codification (“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 requires 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 further 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.

F-272


 
 

TABLE OF CONTENTS

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

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for 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 are included in the Company’s condensed consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company.

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 of Directors (the “Board”) each quarter and is generally based upon the taxable earnings estimated by management.

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held 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 June 30, 2017, cash deposits in excess of insured amounts totaled approximately $12,013,000. 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 June 30, 2017.

Restricted Cash

Restricted cash includes amounts due on Small Business Administration (“SBA”) loan-related remittances to third parties, cash reserves established as part of a voluntary agreement with the SBA, and cash reserves associated with securitization transactions. As of June 30, 2017, total restricted cash was $23,594,000.

Broker Receivable

Broker receivable represents amounts due from third parties for loans which have been traded at period end but have not yet settled.

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.

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 under the Code beginning with the 2015 tax year and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs. The RIC tax return includes Newtek Business Services Corp. and Newtek Small Business Finance, LLC (“NSBF”), a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC tax return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not included in the RIC tax return. In order to maintain its RIC tax treatment, among other things, the

F-273


 
 

TABLE OF CONTENTS

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

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Company is required to meet certain source of income 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 make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes 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, 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 six months ended June 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 net unrealized appreciation generated by the controlled investments held by the Taxable Subsidiaries. Such deferred tax liabilities amounted to $5,575,000 and $5,983,000 at June 30, 2017 and December 31, 2016, respectively, and are recorded 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 investments in the condensed consolidated statements of operations.

Investment Income

Interest on debt investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect 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 expected to be collected or realized. In determining 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 received 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 recorded 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 in the fair value of investments as a component of the net change in unrealized appreciation (depreciation) on investments in the condensed consolidated statements of operations.

F-274


 
 

TABLE OF CONTENTS

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

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:  – (continued)

Stock — Based Compensation

The Company accounts for its equity-based compensation plan using the 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 value to salaries and benefits ratably over the requisite service period or vesting term.

New Accounting Standards

In November 2016, the Financial Accounting Standards Board (“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, 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 is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

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 condensed 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 is currently evaluating the impact this ASU will have on its condensed 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.

F-275


 
 

TABLE OF CONTENTS

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

NOTE 3 — INVESTMENTS:

Investments, all of which are in portfolio companies in the United States, consisted of the following at:

       
  June 30, 2017   December 31, 2016
     Cost   Fair Value   Cost   Fair Value
Money market funds   $ 35     $ 35     $ 35     $ 35  
Non-affiliate debt investments     260,908       255,236       230,950       223,887  
Controlled investments
                                   
Equity     46,355       127,520       35,285       116,919  
Debt     12,092       9,485       5,716       4,383  
Total investments   $ 319,390     $ 392,276     $ 271,986     $ 345,224  

In April 2017, the Company invested in 100% of the common stock of a new wholly-owned, controlled portfolio company, International Professional Marketing, Inc. (“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.

The following table shows the Company’s portfolio investments by industry at June 30, 2017 and December 31, 2016:

       
  June 30, 2017   December 31, 2016
     Cost   Fair Value   Cost   Fair Value
Data Processing, Hosting and Related Services   $ 28,712     $ 103,233     $ 29,010     $ 107,180  
Food Services and Drinking Establishments     26,497       26,148       21,941       21,702  
Amusement, Gambling, and Recreation Industries     18,495       19,097       18,486       18,995  
Securities, Commodity Contracts, and Other Financial Investments and Related Activities     19,019       20,686       12,909       12,649  
Ambulatory Health Care Services     14,225       13,453       13,068       11,976  
Repair and Maintenance     13,216       13,692       12,066       12,228  
Professional, Scientific, and Technical Services     25,647       25,163       12,240       11,582  
Accommodation     10,080       10,717       9,455       9,849  
Specialty Trade Contractors     9,536       9,250       8,311       7,595  
Merchant Wholesalers, Durable Goods     6,833       6,764       6,211       5,989  
Truck Transportation     11,172       10,288       7,469       6,938  
Food and Beverage Stores     5,595       5,656       5,221       5,194  
Heavy and Civil Engineering Construction     4,170       4,098       4,328       4,209  
Fabricated Metal Product Manufacturing     5,356       5,389       5,922       5,961  
Administrative and Support Services     6,082       5,476       6,379       5,727  
Social Assistance     5,660       5,791       4,903       4,905  
Motor Vehicle and Parts Dealers     5,498       5,591       5,059       5,051  
Food Manufacturing     9,458       7,472       5,596       4,873  
Transit and Ground Passenger Transportation     3,353       3,065       1,836       1,703  
Clothing and Clothing Accessories Stores     3,790       3,884       4,221       4,134  
Personal and Laundry Services     6,465       6,633       4,255       4,206  
Gasoline Stations     6,162       5,822       5,938       5,570  
Printing and Related Support Activities     3,816       3,523       3,547       3,183  
Insurance Carriers and Related Activities     856       3,383       1,126       3,631  
Other     69,697       68,002       62,489       60,194  
Total   $ 319,390     $ 392,276     $ 271,986     $ 345,224  

F-276


 
 

TABLE OF CONTENTS

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

NOTE 4 — TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:

Transactions with Affiliated Companies

An affiliated company is an 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 investments with controlled companies for the six months ended June 30, 2017 were as follows:

               
Portfolio Company   Fair Value at
December 31,
2016
  Purchases
(cost)
  Principal
received
(cost)
  Net
realized
gains/
(losses)
  Net
unrealized
gains/
(losses)
  Fair Value at
June 30,
2017
  Interest
and
other
income
  Dividend
income
Controlled Investments
                                                                       
Small Business Lending, LLC   $ 3,300     $     $     $     $ (800 )    $ 2,500     $     $ 100  
PMTWorks Payroll, LLC     2,045                         (2,045 )                   
Universal Processing Services of Wisconsin, LLC     63,000                         1,000       64,000             3,500  
Newtek Technology Solutions, Inc.     20,109             (50 )            (2,559 )      17,500              
CDS Business Services, Inc.     3,440       11,030       (5,100 )            2,750       12,120       218        
Titanium Asset Management LLC     508             (466 )            (42 )            6        
Premier Payments LLC     21,000                               21,000             825  
Newtek Insurance Agency, LLC     2,500                               2,500              
banc-serv Partners, LLC     5,400                               5,400              
International Professional Marketing, Inc.(1)           12,120       (750 )                  11,370       4       350  
Summit Systems and Designs, LLC                                         54        
Advanced Cyber Security Systems, LLC                                                
Excel WebSolutions LLC     904             (242 )            (47 )      615       40        
Total Controlled
Investments
  $ 122,206     $ 23,150     $ (6,608 )    $     $ (1,743 )    $ 137,005     $ 322     $ 4,775  

(1) Refer to Note 3 for discussion of investment in IPM.

Prior to January 2017, Excel WebSolutions LLC (“EWS”) was a non-control/non-affiliate investment. During the six months ended June 30, 2017, the Company exercised warrants to purchase a 50% membership interest in EWS. Interest, fees, and dividends attributable to the investment in EWS that were credited to income prior to January 2017 are included in investment income from non-affiliate investments on the condensed consolidated statements of operations.

Related Party Transactions

Notes Payable — Related Parties

In June 2015, the Company entered into an unsecured revolving line of credit agreement with Universal Processing Services of Wisconsin, LLC (“UPSW”) and Newtek Technology Solutions, Inc. (“NTS”). Maximum borrowings under the line of credit were $38,000,000. In June 2017, the agreement was amended to increase maximum borrowings under the line to $50,000,000. The outstanding balance bears interest at a rate equal to a) LIBOR plus (b) 6% or at a rate equal to (y) the greater of the Prime Rate or 3.5% plus (z) 5%. At June 30, 2017, the line of credit bears interest at a rate of 7.13%. The amended revolving line of credit has a maturity date of June 21, 2021. Outstanding borrowings at June 30, 2017 were $15,741,000. Interest expense

F-277


 
 

TABLE OF CONTENTS

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

NOTE 4 — TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:  – (continued)

for the three months ended June 30, 2017 and 2016 was $31,000 and $55,000, respectively and for the six months ended June 30, 2017 and 2016 was $40,000 and $177,000, respectively.

Expenses Incurred from Controlled Portfolio Companies

The Company incurs expenses from certain controlled portfolio companies including managed technology services expenses from NTS, loan processing and closing expenses from various related parties and payroll processing fees from PMTWorks Payroll, LLC (“PMT”). During the three and six months ended June 30, 2017, the Company earned $54,000 in management fees from Summit Systems and Design, LLC which is included in other income from controlled investments on the condensed consolidated statement of operations.

       
  Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Managed technology services   $ 218     $ 239     $ 470     $ 450  
Loan processing and closing     56       6       66       15  
Payroll processing     9       12       19       17  

Beginning in April 2016, the Company began sub-leasing portions of its office space in Lake Success, New York to certain portfolio companies. Amounts charged for the three and six months ended June 30, 2017 and 2016 were as follows:

       
Portfolio Company   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Small Business Lending, LLC   $ 19     $ 42     $ 42     $ 42  
CDS Business Services, Inc.     14       34       32       34  
PMTWorks Payroll, LLC     14       10       25       10  
Universal Processing Services of Wisconsin, LLC     40       10       71       10  
Newtek Insurance Agency, LLC     22       8       40       8  
Titanium Asset Management LLC     3             7        
Premier Payments LLC     11       21       25       21  
Total   $ 123     $ 125     $ 242     $ 125  

Amounts due from related parties and due to related parties were $3,345,000 and $275,000, respectively at June 30, 2017.

Managerial Assistance Fees from Controlled Investments

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 charged at an arm’s length basis. The table below summarizes amounts charged to each controlled portfolio company for the three and six months ended June 30, 2017 and 2016. The amounts are recorded as a credit to salaries and benefits in the condensed consolidated statements of operations.

F-278


 
 

TABLE OF CONTENTS

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

NOTE 4 — TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:  – (continued)

       
Portfolio Company   Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Universal Processing Services of Wisconsin, LLC   $ 98     $ 128     $ 213     $ 235  
Newtek Technology Solutions, Inc.     138       180       269       358  
PMTWorks Payroll, LLC     22       28       45       53  
Newtek Insurance Agency, LLC     51       70       103       135  
Summit Systems and Designs, LLC                 11       11  
Secure CyberGateway Services, LLC                 2        
Premier Payments LLC     41       45       96       86  
CDS Business Services, Inc.     5             10        
banc-serv Partners, LLC     53             98        
International Professional Marketing, Inc.     19             19        
SIDCO, LLC     15             15        
Small Business Lending, LLC     88       89       194       319  
Total   $ 530     $ 540     $ 1,075     $ 1,197  

NOTE 5 — SERVICING ASSETS:

At June 30, 2017 and December 31, 2016, servicing assets are measured at fair value. The Company earns servicing fees from the SBA 7(a) loans it originates and sells.

The following table summarizes the fair value and valuation assumptions related to servicing assets at June 30, 2017 and December 31, 2016:

   
  June 30,
2017
  December 31,
2016
Fair Value   $ 18,124     $ 16,246  
Discount factor(1)     12.20 %      12.20 % 
Cumulative prepayment rate     18.50 %      18.50 % 
Average cumulative default rate     20.00 %      20.00 % 

(1) Determined based on risk spreads and observable secondary market transactions.

Servicing fee income earned for the three months ended June 30, 2017 and 2016 was $1,723,000 and $1,659,000, respectively. Servicing fee income earned for the six months ended June 30, 2017 and 2016 was $3,369,000 and $3,030,000, respectively.

NOTE 6 — FAIR VALUE MEASUREMENTS:

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.

F-279


 
 

TABLE OF CONTENTS

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

NOTE 6 — FAIR VALUE MEASUREMENTS:  – (continued)

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 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 2   Observable 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 3   Unobservable 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 six months ended June 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

F-280


 
 

TABLE OF CONTENTS

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

NOTE 6 — FAIR VALUE MEASUREMENTS:  – (continued)

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, 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 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 net income before net interest expense, income tax expense, depreciation and amortization (“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.

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.

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.

The following tables present fair value measurements 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 June 30, 2017 and December 31, 2016:

       
  Fair Value Measurements at June 30, 2017 Using:
     Total   Level 1   Level 2   Level 3
Assets:
                                   
Investments in money markets funds   $ 35     $ 35     $     $  
SBA unguaranteed non-affiliate investments     239,757                   239,757  
SBA guaranteed non-affiliate investments     12,224             12,224        
Controlled investments     137,005                   137,005  
Other real estate owned(1)     784             784        
Non-control/non-affiliate investments     3,255                   3,255  
Servicing assets     18,124                   18,124  
Total assets   $ 411,184     $ 35     $ 13,008     $ 398,141  
Liabilities:
                                   
Contingent consideration liabilities(2)   $ 1,368     $     $     $ 1,368  

(1) Included in Other Assets on the Condensed Consolidated Statements of Assets and Liabilities
(2) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Condensed Consolidated Statements of Assets and Liabilities. Refer to Note 3.

The change in unrealized appreciation (depreciation) included in the condensed consolidated statements of operations attributable to Level 3 investments held at June 30, 2017 includes $1,261,000 in unrealized

F-281


 
 

TABLE OF CONTENTS

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

NOTE 6 — FAIR VALUE MEASUREMENTS:  – (continued)

appreciation on SBA unguaranteed non-affiliate investments, $1,743,000 in unrealized depreciation on controlled investments and $969,000 in unrealized depreciation on servicing assets.

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

(1) Included in Other Assets on the Condensed Consolidated Statements of Assets and Liabilities

The following table represents the changes in assets and liabilities measured at fair value using Level 3 inputs for the six months ended June 30, 2017 and 2016:

         
  Six Months Ended June 30, 2017
     SBA
Unguaranteed
Investments
  Controlled
Investments
  Servicing
Assets
  Non-Control/
Non-Affiliate
Investments
  Contingent
Consideration
Liabilities(2)
Fair value, December 31, 2016   $ 211,471     $ 121,302     $ 16,246     $ 904     $  
Net change in unrealized appreciation (depreciation)     1,261       (1,743 )      (969 )             
Realized loss     (43 )                         
SBA unguaranteed non-affiliate investments, funded     37,798                          
Foreclosed real estate acquired     (62 )                         
Purchase of investments           23,149             3,255        
Purchase of loan from SBA     3,821                          
Transfer of Excel WebSolutions, LLC from non-control/non-affiliate to Controlled Investments           904             (904 )       
Record fair value of contingent consideration liabilities                             1,368  
Purchase of loan portfolio     175                          
Accretion of discount     20                          
Return of investment           (50 )                   
Principal payments received on debt investments     (14,684 )      (6,557 )                   
Additions to servicing assets                 2,847              
Fair value, June 30, 2017   $ 239,757     $ 137,005     $ 18,124     $ 3,255     $ 1,368  

(2) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Condensed Consolidated Statements of Assets and Liabilities

F-282


 
 

TABLE OF CONTENTS

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

NOTE 6 — FAIR VALUE MEASUREMENTS:  – (continued)

       
  Six Months Ended June 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)     (549 )      5,724       (43 )      (841 ) 
Realized loss     14                    
SBA unguaranteed non-affiliate investments, funded     31,351                    
Foreclosed real estate acquired     (124 )                   
Purchase of investments           6,150              
Purchase of loan from SBA                        
Transfer from due from related parties           435              
Principal payments received on debt investments     (9,132 )      (1,600 )      (635 )       
Additions to servicing assets                       2,288  
Fair value, June 30, 2016   $ 179,915     $ 115,085     $ 1,146     $ 14,489  

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of June 30, 2017 and December 31, 2016. 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 June 30, 2017 and December 31, 2016.

           
  Fair Value
as of
June 30,
2017
  Valuation
Techniques
  Unobservable
Input
  Weighted
Average
  Range
  Minimum   Maximum
Assets:
                                                     
SBA unguaranteed non-affiliate investments – performing loans   $ 231,250       Discounted cash flow       Market yields       5.50 %      5.50 %      5.50 % 
SBA unguaranteed non-affiliate investments – non-performing loans   $ 8,507       Discounted cash flow       Market yields       5.71 %      5.71 %      5.71 % 
Controlled equity investments(A)(B)   $ 127,520       Market comparable companies       EBITDA multiples(B)
      6.2x       3.40x       7.11x  
                Market comparable companies       Revenue multiples(B)
      1.16x       0.20x       2.68x  
                Discounted cash flow       Weighted average cost of capital(B)
      13.36 %      11.00 %      23.00 % 
Controlled debt investments   $ 8,871       Discounted cash flow       Market yields       6.44 %      4.50 %      10.00 % 
     $ 614       Liquidation value       Asset value       N/A       N/A       N/A  
Non-control/non-affiliate debt investments   $ 3,255       Liquidation value       Asset value       N/A       N/A       N/A  
Servicing assets   $ 18,124       Discounted cash flow       Market yields       12.20 %      12.20 %      12.20 % 

(A) In determining the fair value of the Company’s controlled equity investments as of June 30, 2017, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 45.5% and 54.5%, respectively, on a weighted average basis.

F-283


 
 

TABLE OF CONTENTS

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

NOTE 6 — FAIR VALUE MEASUREMENTS:  – (continued)

(B) The Company valued $116,120,000 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.

           
  Fair Value
as of
December 31,
2016
  Valuation
Techniques
  Unobservable
Input
  Weighted
Average
  Range
  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 the fair value of the Company’s controlled equity investments as of 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.

F-284


 
 

TABLE OF CONTENTS

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

NOTE 7 — BORROWINGS:

At June 30, 2017 and December 31, 2016, the Company had borrowings comprised of the following:

           
  June 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     $ 21,045       4.00 %    $ 50,000     $ 5,100       4.50 % 
Capital One line of credit – unguaranteed(1)           19,000       5.00 %                  % 
Notes due 2021     40,250       38,939       7.00 %      40,250       38,767       7.00 % 
Notes due 2022     8,324       7,895       7.50 %      8,324       7,853       7.50 % 
Notes payable – related parties     50,000       15,741       7.13 %      38,000       1,400       7.67 % 
Notes payable – Securitization Trusts     103,487       101,108       4.20 %      120,945       118,122       3.79 % 
Total   $ 302,061     $ 203,728       5.15 %    $ 257,519     $ 171,242       4.75 % 

(1) Total combined commitments of the guaranteed and unguaranteed lines of credit are $100,000,000 and $50,000,000 at June 30, 2017 and December 31, 2016, respectively.

Outstanding borrowings under the Notes due 2022, Notes due 2021 and Notes payable — Securitization Trusts consisted of the following:

           
  June 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     $ 103,487     $ 8,324     $ 40,250     $ 120,945  
Unamortized deferred financing
costs
    (429 )      (1,311 )      (2,379 )      (471 )      (1,483 )      (2,823 ) 
Net carrying amount   $ 7,895     $ 38,939     $ 101,108     $ 7,853     $ 38,767     $ 118,122  

At June 30, 2017 and December 31, 2016, the carrying amount of the Company’s borrowings under the Capital One lines of credit, Notes payable — related parties and Notes payable — Securitization Trusts, approximates fair value due to their variable interest rates.

The fair value of the fixed rate Notes due 2022 and Notes due 2021 is based on the closing public share price on the date of measurement. On June 30, 2017, the closing price of the Notes due 2022 was $26.45 per note, or $8,807,000. On June 30, 2017, the closing price of the Notes due 2021 was $25.48 per note, or $41,023,000. These borrowings are not recorded at fair value on a recurring basis.

Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three months ended June 30, 2017 and 2016 was $2,612,000 and $1,961,000, respectively, and for the six months ended June 30, 2017 and 2016 was $5,137,000 and $3,436,000, respectively.

NOTE 8 — COMMITMENTS AND CONTINGENCIES:

Legal Matters

From time to time, the Company may be involved in litigation arising out of its operations in 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. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, the Company does not expect that any current matters will materially affect its financial condition or results of operations; however, there can be no

F-285


 
 

TABLE OF CONTENTS

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

NOTE 8 — COMMITMENTS AND CONTINGENCIES:  – (continued)

assurance whether any pending legal proceedings will have a material adverse effect on its financial condition or results of operations in any future reporting period.

Guarantees

The Company is a guarantor on a bank line of credit held at CDS Business Services, Inc. d/b/a Newtek Business Credit Solutions (“NBCS”), a controlled portfolio company. Maximum borrowings under the line of credit are $15,000,000 with a maturity date of February 2018. At June 30, 2017, total principal owed by NBCS was $11,311,000. In addition, the Company deposited $750,000 to collateralize the guarantee. On August 27, 2015, NBCS entered into Amendment No. 2 (the “Amendment”) to the Loan and Security Agreement, dated February 28, 2011 (as amended through August 27, 2015, including the Amendment, the “Agreement”), by and between Sterling National Bank (“Sterling”) and NBCS. The Amendment permits NBCS to use a portion of the warehouse line of credit provided by Sterling under the Agreement to fund inventory financing arrangements NBCS may provide to its clients. The Amendment also removed certain restrictions placed upon the Company in connection with its guaranty of the credit facility provided under the Agreement. At June 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.

NBCS also entered into an additional Loan and Security Agreement with Sterling on August 27, 2015 (the “504 Loan Agreement”), pursuant to which Sterling and any future participant lenders agreed to provide NBCS another line of credit to fund SBA 504 loans extended by NBCS (the “504 Facility”). Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. At June 30, 2017, total principal owed by NBCS was $3,695,000. The 504 Loan Agreement specifies certain events of default, pursuant to which all outstanding amounts under the 504 Facility could become immediately due and payable. In addition, the Company has guaranteed NBCS’ obligations under the 504 Loan Agreement, pursuant to a Guaranty dated as of August 27, 2015. At June 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.

On June 23, 2015, UPSW and NTS, each a controlled portfolio company of the Company, entered into a Credit and Guaranty Agreement (the “Agreement”), dated June 23, 2015, with Goldman Sachs Bank USA (“GS Bank”), as Administrative Agent, Collateral Agent and Lead Arranger, pursuant to which GS Bank agreed to extend UPSW and NTS a term loan facility up to an aggregate principal amount of $38,000,000 (the “Facility” and each term loan made thereunder, a “Term Loan”). On September 18, 2015, the Agreement was amended to add Premier Payments LLC (“Premier”) as a borrower.

On June 21, 2017, UPSW, NTS, Premier, Small Business Lending, LLC (“SBL”) and ADR Partners, LLC d/b/a banc-serv Partners, LLC (“BSP”) (together, the “Borrowers”), each a controlled portfolio company of the Company entered into an Amended and Restated Credit and Guaranty Agreement (the “Amended Agreement”) pursuant to which GS Bank agreed to increase the aggregate principal amount of the Facility to $50,000,000. The Company, together with The Whitestone Group, LLC, Wilshire Holdings I, Inc., Newtek Business Services Holdco 1, Inc. and Banc-Serv Acquisition, Inc., each wholly-owned subsidiaries, whether directly or indirectly, of the Company, and certain subsidiaries party to the Amended Agreement have agreed to guarantee the repayment of the Facility and are parties to the Amended Agreement as “Guarantors” thereunder.

At June 30, 2017, $40,000,000 was outstanding under this Facility. At June 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.

F-286


 
 

TABLE OF CONTENTS

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

NOTE 9 — FINANCIAL HIGHLIGHTS:

The financial highlights for the Company are as follows:

   
Per share data(1)   Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Net asset value at beginning of period   $ 14.30     $ 14.06  
Net investment loss     (0.22 )      (0.38 ) 
Net realized gain on investments     1.04       0.95  
Net unrealized appreciation (depreciation) on investments     (0.03 )      0.41  
Net unrealized depreciation on servicing assets     (0.06 )      (0.06 ) 
Change in provision for deferred taxes     0.02       (0.17 ) 
Dividends to common stockholders from net investment income     (0.36 )       
Distributions to common stockholders from capital gains     (0.40 )      (0.70 ) 
Stock-based compensation expense     0.04        
Other(5)     0.03        
Net asset value at end of period   $ 14.36     $ 14.11  
Per share market value at end of period   $ 16.29     $ 12.72  
Total return based on market value(3)     7.23 %      (3.49 )% 
Total return based on average net asset value(2)(3)(4)     11.47 %      10.67 % 
Shares outstanding at end of period (in thousands)     17,432       14,484  
Ratios/Supplemental Data:
                 
Net assets at end of period   $ 250,244     $ 204,428  
Ratio of expenses to average net assets(2)     19.74 %      19.08 % 
Ratio of net investment loss to average net assets     (3.29 )%      (2.67 )% 
Portfolio turnover     52.63 %      52.65 % 
Average debt outstanding   $ 187,485     $ 143,667  
Average debt outstanding per share   $ 10.76     $ 9.92  
Asset coverage ratio     223 %      231 % 

(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 amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.

NOTE 10 — STOCK BASED COMPENSATION:

Stock Plan

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 measured the grant date fair value based upon the market price of its common 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.

F-287


 
 

TABLE OF CONTENTS

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

NOTE 10 — STOCK BASED COMPENSATION:  – (continued)

The Company’s Board approves the issuance of shares of restricted stock to employees and directors pursuant to the Company’s 2015 Equity Incentive Plan (the “Equity Incentive Plan”). These shares generally vest over a one or two year period from the grant date. 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 June 30, 2017.

 
Restricted Stock authorized under the plan(1)     1,500,000  
Less net restricted stock granted during:
        
Year ended December 31, 2016     (120,933 ) 
Six months ended June 30, 2017     (2,598 ) 
Restricted stock available for issuance as of June 30, 2017     1,376,469  

(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 and six months ended June 30, 2017 the Company recognized total stock-based compensation expense of $367,000 and $752,000, respectively. No stock-based compensation expense was recognized for the three or six months ended June 30, 2016.

As of June 30, 2017, there was $376,000 of total unrecognized compensation expense related to unvested restricted shares. This compensation expense is expected to be recognized over a remaining weighted-average period of approximately 1.06 years as of June 30, 2017.

NOTE 11 — COMMON STOCK:

The following table summarizes the total shares issued and proceeds received net of underwriting and offering costs in public offerings of the Company’s common stock since conversion to a BDC:

       
  Six months
ended
June 30,
2017
  Years ended December 31,
  2016   2015   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 2017 the Company priced a public offering of 2,250,000 shares of its common stock at a public offering price of $15.25 per share. The Company also sold an additional 337,500 shares of its common stock at a public offering price of $15.25 per share pursuant to the underwriter’s full exercise of the over-allotment option.

ATM Program

In March 2017, the Company entered into an ATM equity distribution agreement with JMP Securities LLC, Compass Point Research & Trading, LLC, and Ladenburg Thalmann & Co. (each a “Placement Agent” and collectively, the “Placement Agents”). The equity distribution agreement provides that the Company may offer and sell up to 2,900,000 shares of common stock from time to time through the Placement Agents. During the six months ended June 30, 2017, the Company sold 140,000 shares of its common stock at a

F-288


 
 

TABLE OF CONTENTS

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

NOTE 11 — COMMON STOCK:  – (continued)

weighted average price of $17.56 per share. Proceeds, net of offering costs and expenses were $2,409,000. The Company may offer up to an additional 2,760,000 shares of common stock under the ATM.

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

Investment in IPM

In connection with its investment in International Professional Marketing Inc., the Company issued 60,490 restricted common shares valued at $1,000,000.

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 six months ended June 30, 2016, 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 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 six months ended June 30, 2017 and 2016:

       
  Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Net increase in net assets   $ 6,930     $ 5,372     $ 12,835     $ 10,976  
Weighted average shares outstanding     17,345       14,481       16,867       14,495  
Net increase in net assets per common share   $ 0.40     $ 0.37     $ 0.76     $ 0.76  

F-289


 
 

TABLE OF CONTENTS

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

NOTE 13 — DIVIDENDS AND DISTRIBUTIONS:

The Company’s dividends and distributions are recorded on the declaration date. The following table summarizes the Company’s dividend declarations and distributions during the six months ended June 30, 2017 and 2016.

           
Date Declared   Record Date   Payment Date   Amount
Per Share
  Cash
Distribution
  DRIP
Shares
Issued
  DRIP
Shares
Value
June 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  
June 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  

During the six months ended June 30, 2017, an additional 5,934 shares valued at $99,000 were issued related to dividends from unvested restricted stock awards.

NOTE 14 — SUPPLEMENTAL FINANCIAL DATA:

Summarized Financial Information of Our Unconsolidated Subsidiaries

The Company holds a controlling interest, as defined by the 1940 Act, as amended, in portfolio companies that are not consolidated in the Company’s condensed consolidated financial statements. Below is a brief description of a portfolio company that is required to have supplemental disclosure incorporated in our financial statements in accordance with Regulation S-X section 4-08(g), along with summarized financial information as of June 30, 2017 and 2016.

Universal Processing Services of Wisconsin, LLC

UPSW markets credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other non-cash forms of payment.

The summarized financial information of our unconsolidated subsidiary is as follows:

   
Balance Sheets – Universal Processing Services of Wisconsin, LLC   As of
June 30,
2017
  As of
December 31,
2016
Current assets   $ 9,506     $ 11,522  
Noncurrent assets     17,106       4,907  
Total assets   $ 26,612     $ 16,429  
Current liabilities     2,975       5,619  
Noncurrent liabilities     30,499       16,432  
Total liabilities   $ 33,474     $ 22,051  
Total deficit   $ (6,862 )    $ (5,622 ) 

       
Statements of Income – Universal Processing Services
of Wisconsin, LLC
  Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Revenue   $ 28,724     $ 26,012     $ 55,760     $ 50,482  
Expenses     26,615       24,001       51,634       46,857  
Income from operations   $ 2,109     $ 2,011     $ 4,126     $ 3,625  
Interest (expense) income, net     (386 )      (363 )      (787 )      (664 ) 
Net income   $ 1,723     $ 1,648     $ 3,339     $ 2,961  

F-290


 
 

TABLE OF CONTENTS

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

NOTE 14 — SUPPLEMENTAL FINANCIAL DATA:  – (continued)

The Company recorded the following related to its investment in UPSW:

       
  Three Months
Ended
June 30,
2017
  Three Months
Ended
June 30,
2016
  Six Months
Ended
June 30,
2017
  Six Months
Ended
June 30,
2016
Dividend income   $ 1,750     $ 1,500     $ 3,500     $ 2,800  
Unrealized appreciation   $     $ 900     $ 1,000     $ 3,700  

NOTE 15 — SUBSEQUENT EVENTS:

Effective as of July 3, 2017, the Company eliminated the position of Chief Information Officer (“CIO”), and consolidated the CIO function within the Company’s Information Technology Department in Lake Success, NY. As a result of the foregoing elimination and consolidation, Nilesh Joshi, CIO, left the Company effective July 3, 2017. In addition, the Company created the position of Director of Information Technology and retained Jesse H. Davis in this position.

F-291


 
 

TABLE OF CONTENTS

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

         
Portfolio Company/Type of Investment(1)   Amount of
Interest, Fees
or Dividends
Credited in
Income
  Fair Value at
December 31, 2016
  Gross
Additions(2)
  Gross
Reductions(3)
  Fair Value at
June 30, 2017
Control Investments
                                            
Advanced Cyber Security Systems, LLC
                                   
50% Membership Interest   $     $     $     $     $  
Term Loan                              
Automated Merchant Services, Inc.
                                            
100% Common Stock                              
CDS Business Services, Inc.
                                            
100% Common Stock           750       2,750             3,500  
Line of Credit     218       2,690       11,030       (5,100 )      8,620  
Newtek Technology Solutions, Inc.
                                            
100% Common Stock           20,109             (2,609 )      17,500  
Fortress Data Management, LLC
                                            
100% Membership Interest                              
Newtek Insurance Agency, LLC
                                            
100% Membership Interest           2,500                   2,500  
PMTWorks Payroll, LLC
                                            
100% Membership Interest           860             (860 )       
Term Loans           1,185             (1,185 )       
Secure CyberGateway Services, LLC
                                            
66.7% Membership Interest                              
Term Loan                              
Premier Payments LLC
                                            
100% Membership Interest     825       21,000                   21,000  
Small Business Lending, LLC
                                            
100% Membership Interest     100       3,300             (800 )      2,500  
banc-serv Partners, LLC
                                            
100% Membership Interest           5,400                   5,400  
International Professional Marketing, Inc.
                                   
100% Common Stock     350             11,120             11,120  
Line of Credit     4             1,000       (750 )      250  
SIDCO, LLC
                                            
100% Membership Interest                              
Excel WebSolutions LLC(4)
                                            
Term Loans     40       904             (289 )      615  
50% Membership Interest                              
Titanium Asset Management, LLC
                                            
100% Membership Interest                              
Term Loans     6       508             (508 )       

F-292


 
 

TABLE OF CONTENTS

         
Portfolio Company/Type of Investment(1)   Amount of
Interest, Fees
or Dividends
Credited in
Income
  Fair Value at
December 31, 2016
  Gross
Additions(2)
  Gross
Reductions(3)
  Fair Value at
June 30, 2017
Summit Systems and Designs, LLC
                                            
100% Membership Interest     54                          
Universal Processing Services of Wisconsin, LLC
                                            
100% Membership Interest     3,500       63,000       1,000             64,000  
Total Control Investments   $ 5,097     $ 122,206     $ 26,900     $ (12,101 )    $ 137,005  

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 shown in the Company's Consolidated Schedule of Investments.
(2) 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.
(3) 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.
(4) Prior to January 2017, EWS was a non-control/non-affiliate investment. Refer to Note 4.

F-293


 
 

TABLE OF CONTENTS

  

$300,000,000
 

[GRAPHIC MISSING]

Common Stock
Preferred Stock
Subscription Rights
Warrants
Debt Securities

NEWTEK BUSINESS SERVICES CORP.


 
 
 
 
 

PROSPECTUS
           , 2017

 

 


 
 

TABLE OF CONTENTS

PART C — OTHER INFORMATION

ITEM 25. FINANCIAL STATEMENTS AND EXHIBITS

1. Financial Statements

The following financial statements of Newtek Business Services Corp. are included in Part A “Information Required to be in the Prospectus” of the Registration Statement.

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS

Table of Contents

 
  PAGE
NO.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 
Report of Independent Registered Public Accounting Firm     F-2  
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting     F-3  
Consolidated Statements of Assets and Liabilities as of December 31, 2016 and 2015     F-4  
Consolidated Statements of Operations for the years ended December 31, 2016 and 2015
and the periods November 12, 2014 to December 31, 2014 and January 1, 2014 to November 11, 2014
    F-5  
Consolidated Statements of Changes in Net Assets/Stockholders' Equity for the years ended December 31, 2016 and 2015, the period from November 12, 2014 to December 31, 2014 and the period from January 1, 2014 to November 11, 2014     F-7  
Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015 and the periods from November 12, 2014 to December 31, 2014 and January 1, 2014 to November 11, 2014     F-9  
Consolidated Schedules of Investments as of December 31, 2016 and 2015     F-12  
Notes to Consolidated Financial Statements     F-103  
Universal Processing Services of Wisconsin, LLC Financial Statements
 
Independent Auditor’s Report     F-147  
Financial Statements
        
Balance Sheet     F-148  
Statement of Income     F-149  
Statement of Changes in Member’s Deficit     F-150  
Statement of Cash Flows     F-151  
Notes to Financial Statements     F-152  

C-1


 
 

C-2


 
 

TABLE OF CONTENTS

2. Exhibits

 
Exhibit
Number
  Description
a.   Amended and Restated Articles of Incorporation of Newtek (Incorporated by reference to Exhibit A to Newtek’s Pre-Effective Amendment No. 3 to its Registration Statement on Form N-2, No. 333-191499, filed November 3, 2014).
b.   Bylaws of Newtek (Incorporated by reference to Exhibit 2 to Newtek’s Registration Statement on Form N-14, No. 333-195998, filed September 24, 2014).
c.   Not applicable.
d.1   Form of Common Stock Certificate (Incorporated by reference to Exhibit 5 to Newtek’s Registration Statement on Form N-14, No. 333-195998, filed September 24, 2014).
d.2   Base Indenture, dated as of September 23, 2015, between Newtek, as issuer, and U.S. Bank National Association, as trustee (Incorporated by reference to Exhibit D.2 to Newtek’s Post-Effective Amendment No. 1 to its Registration Statement on Form N-2, No. 333-204915, filed September 23, 2015).
d.3   First Supplemental Indenture, dated as of September 23, 2015, between Newtek, as issuer, and U.S. Bank National Association, as trustee (Incorporated by reference to Exhibit D.3 to Newtek’s Post-Effective Amendment No. 1 to its Registration Statement on Form N-2, No. 333-204915, filed September 23, 2015).
d.4   Form of Global Note with respect to the 7.5% Notes due 2022 (Included as Exhibit A of Exhibit D.3) (Incorporated by reference to Exhibit D.4 to Newtek’s Post-Effective Amendment No. 1 to its Registration Statement on Form N-2, No. 333-204915, filed September 23, 2015).
d.5   Second Supplemental Indenture, dated as of April 22, 2016, between Newtek, as issuer, and U.S. Bank National Association, as trustee (Incorporated by reference to Exhibit D.6 to Post-Effective Amendment No. 3 to its Registration Statement on Form N-2, No. 333-204915, filed April 22, 2016).
d.6   Form of Global Note with respect to the 7.00% Notes due 2021 (Included as Exhibit A of Exhibit D.5) (Incorporated by reference to Exhibit D.7 to Post-Effective Amendment No. 3 to its Registration Statement on Form N-2, No. 333-204915, filed April 22, 2016).
d.7   Statement of Eligibility of Trustee on Form T-1 (Incorporated by reference to Exhibit d.7 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
e.   Form of Dividend Reinvestment Plan (Incorporated by reference to Exhibit E to Newtek’s Pre-Effective Amendment No. 3 to its Registration Statement on Form N-2, No. 333-191499, filed November 3, 2014).
f.1   Lease and Master Services Agreement dated March 15, 2007 between CrystalTech Web Hosting, Inc. and i/o Data Centers (Incorporated by reference to Exhibit 10.4 to Newtek’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed May 15, 2007).
  f.2.1   Guaranty of Payment and Performance, dated as of April 30, 2010, between Newtek Business Services, Inc. and Capital One Bank, N.A. (Incorporated by reference herein to Exhibit 10.16.2 to Newtek’s Current Report on Form 8-K, filed May 5, 2010).
  f.3.1   Loan and Security Agreement, dated as of December 15, 2010, between Newtek Small Business Finance, Inc. and Capital One Bank, N.A. (Incorporated by reference herein to Exhibit 10.18.1 to Newtek’s Current Report on Form 8-K, filed December 20, 2010, as amended on March 2, 2011).
  f.3.2   Guaranty Agreement, dated as of December 15, 2010, between Newtek Business Services, Inc. and Capital One Bank, N.A. (Incorporated by reference herein to Exhibit 10.18.2 to Newtek’s Current Report on Form 8-K, filed December 20, 2010, as amended on March 2, 2011).

C-3


 
 

TABLE OF CONTENTS

 
Exhibit
Number
  Description
f.3.3   Amended and Restated Loan and Security Agreement, dated as of June 16, 2011, by and between Newtek Small Business Finance, Inc. and Capital One, N.A. (Incorporated by reference herein to Exhibit 10.8.3 to Newtek’s Current Report on Form 8-K, filed June 21, 2011).
f.3.4   Amended and Restated Guaranty of Payment and Performance, dated as of June 16, 2011, by and between Newtek Business Services, Inc., and Capital One, N.A. (Incorporated by reference herein to Exhibit 10.8.4 to Newtek’s Current Report on Form 8-K, filed June 21, 2011).
f.3.5   Amendment to Loan Documents, dated October 6, 2011, by and among Newtek Small Business Finance, Inc., Capital One Bank, N.A. and each of the guarantors listed on the signature pages thereto (Incorporated by reference herein to Exhibit 10.8.5 to Newtek’s Current Report on Form 8-K, filed October 11, 2011).
f.3.6   Amended and Restated Loan and Security Agreement, dated as of July 16, 2013, by and between Newtek Small Business Finance, Inc. and Capital One, National Association (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed July 19, 2013).
f.3.7   Guaranty and Security Agreement Letter Amendment, dated as of July 16, 2013, by and between Capital One, National Association and Newtek Business Services, Inc. (Incorporated by reference herein to Exhibit 10.2 to Newtek’s Current Report on Form 8-K, filed July 19, 2013).
f.3.8   Amended and Restated Loan and Security Agreement, dated as of October 29, 2014, by and between Newtek Small Business Finance, Inc. and Capital One, National Association (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed October 30, 2014).
f.3.9   Guaranty and Security Agreement Letter Agreement, dated as of October 29, 2014, by and between Capital One, National Association and Newtek Business Services, Inc. (Incorporated by reference herein to Exhibit 10.2 to Newtek’s Current Report on Form 8-K, filed October 30, 2014).
f.3.10   First Amendment, dated as of June 18, 2015, to the Amended and Restated Loan and Security Agreement dated as of October 29, 2014, by and between Newtek Small Business Finance, LLC (successor-in-interest by merger to Newtek Small Business Finance, Inc.), Capital One, National Association and Newtek Business Services Corp. (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed June 24, 2015).
f.3.11   Amended and Restated Guaranty of Payment and Performance, dated as of June 18, 2015, by Newtek Business Services Corp. (successor-in-interest to Newtek Business Services, Inc.) in favor of Capital One, National Association (Incorporated by reference herein to Exhibit 10.2 to Newtek’s Current Report on Form 8-K, filed June 24, 2015).
f.3.12   Fourth Amended and Restated Loan and Security Agreement, dated as of May 11, 2017, by and among Newtek Small Business Finance, LLC, Capital One, National Association and UBS Bank USA as Lenders, and Capital One, National Association as Administrative Agent, Sole Bookrunner and Sole Lead Arranger (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed May 16, 2017) .
f.3.13   Second Amended and Restated Guaranty of Payment and Performance, dated as of May 11, 2017, delivered by Newtek Business Services Corp. in favor of Capital One, National Association, in its capacity as administrative agent, and the Lenders under the Fourth Amended and Restated Loan and Security Agreement (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed May 16, 2017).
f.4.1   Newtek Small Business Loan Trust Class A Notes, dated December 22, 2010 (Incorporated by reference herein to Exhibit 10.19.1 to Newtek’s Current Report on Form 8-K, filed December 23, 2010).

C-4


 
 

TABLE OF CONTENTS

 
Exhibit
Number
  Description
f.4.2   Amended Newtek Small Business Loan Trust Class A Notes, dated December 29, 2011 (Incorporated by reference herein to Exhibit 10.19.2 to Newtek’s Current Report on Form 8-K, filed January 5, 2012).
f.4.3   Additional Newtek Small Business Loan Trust Class A Notes, dated December 29, 2011 (Incorporated by reference herein to Exhibit 10.19.3 to Newtek’s Current Report on Form 8-K, filed January 5, 2012).
f.5.1   Loan and Security Agreement, dated as of February 28, 2011, by and between CDS Business Services, Inc. and Sterling National Bank (Incorporated by reference herein to Exhibit 10.10.1 to Newtek’s Current Report on Form 8-K, filed March 3, 2011).
f.5.2   Guaranty, dated as of February 28, 2011, by and between Newtek Business Services, Inc. and Sterling National Bank (Incorporated by reference herein to Exhibit 10.10.2 to Newtek’s Current Report on Form 8-K, filed March 3, 2011).
f.5.3   Amendment No. 1, dated December 5, 2012, to Loan and Security Agreement, dated as of February 28, 2011, by and between CDS Business Services, Inc. and Sterling National Bank (Incorporated by reference herein to Exhibit 10.9.3 to Newtek’s Current Report on Form 8-K, filed December 11, 2012).
f.5.4   Amendment No. 2, dated August 27, 2015, to Loan and Security Agreement, dated as of February 28, 2011, by and between CDS Business Services, Inc. and Sterling National Bank (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K filed September 1, 2015).
f.5.5   Loan and Security Agreement, dated as of August 27, 2015, by and between CDS Business Services, Inc., as borrower, Sterling National Bank, as administrative agent and collateral agent, and Newtek, as a guarantor (Incorporated by reference herein to Exhibit 10.2 to Newtek’s Current Report on Form 8-K filed September 1, 2015).
f.5.6   Guaranty, dated as of August 27, 2015, by and between Newtek and Sterling National Bank (Incorporated by reference herein to Exhibit 10.3 to Newtek’s Current Report on Form 8-K filed September 1, 2015).
f.5.7   Amendment No. 2 to the Loan and Security Agreement, dated as of August 27, 2015, by and between CDS Business Services, Inc. and Sterling National Bank (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed December 9, 2015).
f.5.8   Amended and Restated Loan and Security Agreement, dated as of December 1, 2015, by and between CDS Business Services, Inc., Sterling National Bank and BankUnited, N.A. (Incorporated by reference herein to Exhibit 10.2 to Newtek’s Current Report on Form 8-K, filed December 9, 2015).
f.5.9   Guaranty, dated as of December 1, 2015, by and between Newtek and Sterling National Bank (Incorporated by reference herein to Exhibit 10.3 to Newtek’s Current Report on Form 8-K, filed December 9, 2015).
f.6     Credit Agreement by and between Newtek Business Services, Inc. and Capital One, National Association, dated as of June 26, 2014 (Incorporated by reference to Exhibit 10.1 to Newtek’s Current Report on Form 8-K filed July 1, 2014).
f.7     Credit and Guaranty Agreement, dated as of June 23, 2015, by and between Universal Processing Services of Wisconsin LLC, CrystalTech Web Hosting, Inc., as borrowers, Goldman Sachs Bank USA, as Administrative Agent, Collateral Agent and Lead Arranger, various lenders, and Newtek, Newtek Business Services Holdco 1, Inc. and certain subsidiaries of Newtek Business Services Holdco 1, Inc., as guarantors (Incorporated by reference herein to Exhibit 10.1 to Newtek’s Current Report on Form 8-K, filed June 25, 2015).

C-5


 
 

TABLE OF CONTENTS

 
Exhibit
Number
  Description
f.8     Amended and Restated Credit and Guaranty Agreement, dated June 21, 2017, by and among Universal Processing Services of Wisconsin LLC, CrystalTech Web Hosting, Inc., Small Business Lending, LLC, ADR Partners, LLC, Premier Payments LLC, Newtek Business Services Corp., Wilshire Holdings I, Inc., The Whitestone Group, LLC, Newtek Business Services Holdco 1, Inc., Banc-Serv Acquisition, Inc., certain subsidiaries of Newtek Business Services Holdco 1, Inc. and Banc-Serv Acquisition, Inc., including Newtek LSP Holdco, LLC, CRY Sales, LLC and UPSWI Sales, LLC, the Lenders party thereto from time to time, Goldman Sachs Bank USA, as Administrative Agent and Collateral Agent, and Goldman Sachs Specialty Lending Group, L.P., as Lead Arranger (incorporated by reference to Exhibit 10.1 to Newtek’s Current Report on Form 8-k, filed June 21, 2017).
g.      Not Applicable.
h.1     Form of Equity Underwriting Agreement (Incorporated by reference to Exhibit h.1 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
h.2     Form of Debt Underwriting Agreement (Incorporated by reference to Exhibit h.2 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
h.3     Form of Equity Distribution Agreement (Incorporated by reference to Exhibit h.3 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
h.4     Underwriting Agreement, dated as of January 25, 2017, by and among Newtek and Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., and UBS Securities LLC (Incorporated by reference to Exhibit h.4 to Newtek’s Post-Effective Amendment No. 1 to its Registration Statement on Form N-2, No. 333-212436, filed January 30, 2017).
h.5   Equity Distribution Agreement, dated as of March 20, 2017, by and among Newtek, JMP Securities LLC, Compass Point Research & Trading, LLC, and Ladenburg Thalmann & Co. Inc. (Incorporated by reference to Exhibit h.5 to Newtek’s Post-Effective Amendment No. 2 to its Registration Statement on Form N-2, No. 333-212436, filed March 21, 2017)
i.   Newtek 2014 Stock Incentive Plan (Incorporated by reference herein to Exhibit 8.6 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-14, No. 333-195998, filed September 24, 2014).
j.1   Form of Custodian Agreement (Incorporated by reference to Exhibit J to Newtek’s Pre-Effective Amendment No. 3 to its Registration Statement on Form N-2, No. 333-191499, filed November 3, 2014).
j.2   Amended and Restated Form of Custodian Agreement (Incorporated by reference to Exhibit 99.1 to Newtek’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, filed November 5, 2015).
k.1   Employment Agreement with Barry Sloane, dated March 15, 2017, (Incorporated by reference to Exhibit 10.1 to Newtek’s Current Report on Form 8-K filed April 28, 2017).
k.2   Employment Agreement with Jennifer C. Eddelson, dated March 15, 2017 (Incorporated by reference to Exhibit 10.2 to Newtek’s Current Report on Form 8-K filed April 28, 2017).
k.3   Employment Agreement with Michael A. Schwartz, dated March 15, 2017, (Incorporated by reference to Exhibit 10.3 to Newtek’s Current Report on Form 8-K filed April 28, 2017).
l.1.   Opinion of Eversheds Sutherland (US) LLP (Incorporated by reference to Exhibit l to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).

C-6


 
 

TABLE OF CONTENTS

 
Exhibit
Number
  Description
l.2   Opinion of Sutherland Asbill & Brennan LLP related to the issuance of 2,587,500 shares of Newtek’s common stock (Incorporated by reference to Exhibit l.2 of Newtek’s Post-Effective Amendment No. 1 to its Registration Statement on Form N-2, No 333-212436, filed January 30, 2017).
l.3   Opinion of Eversheds Sutherland (US) LLP related to issuance and sale, from time to time, of up to 2,900,000 shares of Newtek’s common stock (Incorporated by reference to Exhibit l.3 to Newtek’s Post-Effective Amendment No. 2 to its Registration Statement on Form N-2, No. 333-212436, filed March 21, 2017).
m.    Not applicable.
n.1   Consent of Sutherland Asbill & Brennan LLP (Incorporated by reference to Exhibit l to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
n.2   Consent of Independent Registered Public Accounting Firm (Incorporated by reference to Exhibit n.2 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
n.3   Consent of Independent Registered Public Accounting Firm (Incorporated by reference to Exhibit n.3 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
n.4   Consent of Independent Auditor (Incorporated by reference to Exhibit n.4 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
n.5   Report of RSM US LLP Regarding the Senior Securities Table (Incorporated by reference to Exhibit n.5 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
n.6   Report of CohnReznick LLP Regarding the Senior Securities Table (Incorporated by reference to Exhibit n.5 to Newtek’s Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2, No. 333-191499, filed November 3, 2014).
 n.7   Report of Independent Registered Public Accounting Firm.*
 n.8   Consent of Independent Registered Public Accounting Firm.*
 n.9   Consent of Independent Auditor.
o.   Not applicable.
p.   Not applicable.
q.   Not applicable.
r.   Code of Ethics (Incorporated by reference to Exhibit R to Newtek’s Registration Statement on Form N-2, No. 333-191499, filed November 3, 2014).
99.1   Code of Business Conduct and Ethics of Registrant (Incorporated by reference to Exhibit 99.1 to Newtek’s Registration Statement on Form N-2, No. 333-191499, filed November 3, 2014).
99.2   Form of Prospectus Supplement for Common Stock Offerings (Incorporated by reference to Exhibit 99.2 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
99.3   Form of Prospectus Supplement for Preferred Stock Offerings (Incorporated by reference to Exhibit 99.3 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
99.4   Form of Prospectus Supplement for At-the-Market Offerings (Incorporated by reference to Exhibit 99.4 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).

C-7


 
 

TABLE OF CONTENTS

 
Exhibit
Number
  Description
99.5   Form of Prospectus Supplement for Rights Offerings (Incorporated by reference to Exhibit 99.5 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
99.6   Form of Prospectus Supplement for Warrants (Incorporated by reference to Exhibit 99.6 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
99.7   Form of Prospectus Supplement for Retail Note Offerings (Incorporated by reference to Exhibit 99.7 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).
99.8   Form of Prospectus Supplement for Institutional Note Offering (Incorporated by reference to Exhibit 99.8 to Newtek’s Pre-Effective Amendment No. 2 to its Registration Statement on Form N-2, No 333-212436, filed August 25, 2016).

* Filed herewith.

C-8


 
 

TABLE OF CONTENTS

ITEM 26. MARKETING ARRANGEMENTS

The information contained under the heading “Underwriting” on this Registration Statement is incorporated herein by reference.

ITEM 27. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION

 
SEC registration fee   $ 30,210
FINRA filing fee   $ 13,479
Nasdaq Global Market   $ 30,000 ** 
Printing and postage   $ 150,000 ** 
Legal fees and expenses   $ 250,000 ** 
Accounting fees and expenses   $ 250,000 ** 
Total   $ 723,689  

* This amount has been offset against filing fees associated with unsold securities registered under a previous registration statement.
** Estimated for filing purposes.

ITEM 28. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL

See “Management,” “Certain Relationships and Transactions,” “Portfolio Companies” and “Control Persons and Principal Stockholders” in the Prospectus contained herein.

ITEM 29. NUMBER OF HOLDERS OF SECURITIES

The following table sets forth the number of record holders of the Registrant’s common stock at August 21, 2017:

 
Title of Class   Number of
Record Holders
Common Stock, par value $0.02 per share     138  

ITEM 30. INDEMNIFICATION

Directors and Officers

Reference is made to Section 2-418 of the Maryland General Corporation Law, Article VII of the Registrant’s charter and Article XI of the Registrant’s bylaws.

Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material to the cause of action. The Registrant’s charter contains such a provision which eliminates directors’ and officers’ liability to the maximum extent permitted by Maryland law, subject to the requirements of the Investment Company Act of 1940, as amended (the “1940 Act”).

The Registrant’s charter authorizes the Registrant, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as the Registrant’s director or officer and at the Registrant’s request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee benefit plan or other enterprise as a director, officer, partner or trustee, from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in any such capacity and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding. The Registrant’s bylaws obligate the Registrant, to the maximum extent permitted by Maryland law and subject to the requirements of the 1940 Act, to indemnify any present or former director or officer or any individual who, while serving as the Registrant’s director or officer and at the Registrant’s request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee

C-9


 
 

TABLE OF CONTENTS

benefit plan or other enterprise as a director, officer, partner or trustee and who is made, or threatened to be made, a party to the proceeding by reason of his or her service in that capacity from and against any claim or liability to which that person may become subject or which that person may incur by reason of his or her service in any such capacity and to pay or reimburse his or her reasonable expenses in advance of final disposition of a proceeding. The charter and bylaws also permit the Registrant to indemnify and advance expenses to any person who served a predecessor of the Registrant in any of the capacities described above and any of the Registrant’s employees or agents or any employees or agents of the Registrant’s predecessor. In accordance with the 1940 Act, the Registrant will not indemnify any person for any liability to which such person would be subject by reason of such person’s willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.

Maryland law requires a corporation (unless its charter provides otherwise, which the Registrant’s charter does not) to indemnify a director or officer who has been successful in the defense of any proceeding to which he or she is made, or threatened to be made, a party by reason of his or her service in that capacity. Maryland law permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made, or threatened to be made, a party by reason of their service in those or other capacities unless it is established that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (1) was committed in bad faith or (2) was the result of active and deliberate dishonesty, (b) the director or officer actually received an improper personal benefit in money, property or services or (c) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, under Maryland law, a Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that a personal benefit was improperly received unless, in either case, a court orders indemnification, and then only for expenses. In addition, Maryland law permits a corporation to advance reasonable expenses to a director or officer in advance of final disposition of a proceeding upon the corporation’s receipt of (a) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation and (b) a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the standard of conduct was not met.

ITEM 31. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER

Not applicable.

ITEM 32. LOCATION OF ACCOUNTS AND RECORDS

All accounts, books, and other documents required to be maintained by Section 31(a) of the 1940 Act, and the rules thereunder are maintained at the offices of:

(1) the Registrant, Newtek Business Services Corp., 1981 Marcus Avenue, Suite 130, Lake Success, NY 11042;
(2) the Transfer Agent, American Stock Transfer and Trust Company, 6201 15th Avenue, Brooklyn, NY 11219; and
(3) the Custodian, U.S. Bank National Association, 615 East Michigan Street, Milwaukee, Wisconsin 53202

ITEM 33. MANAGEMENT SERVICES

Not applicable.

C-10


 
 

TABLE OF CONTENTS

ITEM 34. UNDERTAKINGS

(1) Registrant undertakes to suspend the offering of the shares covered hereby until it amends its prospectus contained herein if (a) subsequent to the effective date of this Registration Statement, its net asset value declines more than 10% from its net asset value as of the effective date of this Registration Statement, or (b) its net asset value increases to an amount greater than its net proceeds as stated in the prospectus contained herein.
(2) Not applicable.
(3) Registrant undertakes in the event that the securities being registered are to be offered to existing stockholders pursuant to warrants or rights, and any securities not taken by shareholders are to be reoffered to the public, to supplement the prospectus, after the expiration of the subscription period, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by underwriters, and the terms of any subsequent underwriting thereof. Registrant further undertakes that if any public offering by the underwriters of the securities being registered is to be made on terms differing from those set forth on the cover page of the prospectus, the Registrant shall file a post-effective amendment to set forth the terms of such offering.
(4) The Registrant hereby undertakes:
(a) To file, during any period in which offers or sales are being made, a post-effective amendment to the registration statement:
(i) to include any prospectus required by Section 10(a)(3)of the 1933 Act;
(ii) to reflect in the prospectus any facts or events after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement; and
(iii) to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
(b) That, for the purpose of determining any liability under the 1933 Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of those securities at that time shall be deemed to be the initial bona fide offering thereof; and
(c) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering; and
(d) That, for the purpose of determining liability under the 1933 Act to any purchaser, if the Registrant is subject to Rule 430C: Each prospectus filed pursuant to Rule 497(b), (c), (d) or (e) under the 1933 Act as part of a registration statement relating to an offering, other than prospectuses filed in reliance on Rule 430A under the 1933 Act, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness; Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

C-11


 
 

TABLE OF CONTENTS

(e) That, for the purpose of determining liability of the Registrant under the 1933 Act to any purchaser in the initial distribution of securities, the undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to the purchaser:
(i) any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 497 under the 1933 Act;
(ii) the portion of any advertisement pursuant to Rule 482 under the 1933 Act relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and
(iii) any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.
(f) To file a post-effective amendment to the registration statement, and to suspend any offers or sales pursuant the registration statement until such post-effective amendment has been declared effective under the 1933 Act, in the event the shares of the Registrant is trading below its net asset value and either (i) Registrant receives, or has been advised by its independent registered accounting firm that it will receive, an audit report reflecting substantial doubt regarding the Registrant’s ability to continue as a going concern or (ii) Registrant has concluded that a material adverse change has occurred in its financial position or results of operations that has caused the financial statements and other disclosures on the basis of which the offering would be made to be materially misleading.
(5) Not Applicable.
(6) Not Applicable.
(7) The Registrant undertakes to file a post-effective amendment to the registration statement during any period in which offers or sales of the Registrant’s securities are being made at a price below the net asset value per share of the Registrant’s common stock as of the date of the commencement of such offering and such offering will result in greater than 15% dilution to the net asset value per share of the Registrant’s common stock.

C-12


 
 

TABLE OF CONTENTS

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this Registration Statement on Form N-2 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, in the State of New York, on August 23, 2017.

NEWTEK BUSINESS SERVICES CORP.

BY: /s/ Barry Sloane

Barry Sloane
Chief Executive Officer, President and Chairman of the Board of Directors

Pursuant to the requirements of the Securities Act of 1933, as amended, Amendment No. 4 to this Registration Statement on Form N-2 has been signed by the following persons in the capacities and on the dates indicated.

   
Signature   Title   Date
/s/ Barry Sloane

Barry Sloane
  Chief Executive Officer, President and Chairman of the Board of Directors (Principal Executive Officer)   August 23, 2017
/s/ Jennifer Eddelson

Jennifer Eddelson
  Executive Vice President and Chief Accounting Officer (Principal Financial and Accounting Officer)   August 23, 2017
/s/ Richard J. Salute*

Richard J. Salute
  Director   August 23, 2017
/s/ Gregory L. Zink*

Gregory L. Zink
  Director   August 23, 2017
/s/ Salvatore F. Mulia*

Salvatore F. Mulia
  Director   August 23, 2017
/s/ Peter Downs*

Peter Downs
  Director   August 23, 2017

  

*   Signed by Barry Sloane pursuant to a power of attorney signed by each individual and filed with post-effective amendment No. 3 to this registration statement on June 6, 2017.

C-13