Annual Statements Open main menu
  1. Annual Statements
  2. » Companies
  3. » NewtekOne, Inc.
  4. » Quarter Report: 2017 September (Form 10-Q)

NewtekOne, Inc. - Quarter Report: 2017 September (Form 10-Q)

Table of Contents


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

FORM 10-Q

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

For the quarterly period ended September 30, 2017

OR

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

For the transition period from _____to_____
Commission file number: 814-01035
NEWTEK BUSINESS SERVICES CORP.
(Exact name of registrant as specified in its charter)
  
Maryland
 
46-3755188
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
 
1981 Marcus Avenue, Suite 130, Lake Success, New York
 
11042
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (212) 356-9500


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ¨    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company (all as defined in Rule 12b-2 of the Exchange Act).
Large accelerated filer
 
o
Accelerated filer
 
x
 
 
 
 
 
 
Non-accelerated filer
 
o
Smaller reporting company
 
o
 
 
 
 
 
 
 
 
 
Emerging growth company
 
o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial or accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x
As of November 7, 2017 there were 18,004,247 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.
 

Table of Contents

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

Table of Contents


Defined Terms

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

Terms
 
1940 Act
Investment Company Act of 1940, as amended
2016-1 Trust
Newtek Small Business Loan Trust, Series 2016-1
2021 Notes
7% Notes due 2021
2022 Notes
7.5% Notes due 2022
ASC
Accounting Standards Codification, as issued by the FASB
ASU
Accounting Standards Updates, as issued by the FASB
ATM Equity Distribution Agreement
At the Market equity distribution agreement dated March 20, 2017 with JMP Securities, LLC, Compass Point Research & Trading, LLC and Ladenburg Thalman & Co., Inc., each Placement Agents. Amended and restated on September 6, 2017 to include D.A. Davidson as a Placement Agent
BDC
Business Development Company under the 1940 Act
Board
The Company's board of directors
Capital One
Capital One Bank, N.A.
Code
Internal Revenue Code of 1986, as amended
DRIP
Dividend reinvestment plan
EBITDA
Earnings before interest, taxes, depreciation and amortization
Equity Incentive Plan
The Company's 2015 Equity Incentive Plan
Exchange Act
Securities and Exchange Act of 1934, as amended
FASB
Financial Accounting Standards Board
Goldman Facility
Credit and Guaranty Agreement between UPSW and NTS and GS Bank; amended on September 18, to include Premier as a borrower; amended on June 21, 2017 to include BSP and SBL as borrowers
Goldman Sachs
Goldman Sachs Bank
LIBOR
London Interbank Offered Rate
Related Party RLOC
Unsecured revolving line of credit agreement between UPSW, NTS, Premier, BSP and SBL as lenders and Newtek as borrower
PLP
Preferred Lender Program, as authorized by the SBA
RIC
Regulated investment company under the Code
S&P
Standard and Poor's
SBA
United States Small Business Administration
SEC
Securities and Exchange Commission
SMB
Small-and-medium sized businesses
Sterling
Sterling National Bank
Sterling 504 Facility
Loan and Security Agreement between NBCS and Sterling, as lender to fund SBA 504 loans
Sterling Receivable and Inventory Facility
Loan and Security Agreement between NBCS and Sterling, as lender to fund accounts receivable and inventory financing arrangements
Taxable Subsidiaries
Companies formed by Newtek which are taxed as corporations for income tax purposes
Trustee
U.S. Bank, N.A.
U.S. GAAP
Generally accepted accounting principles in the United States
 
 
Portfolio Companies and Subsidiaries
 

Table of Contents

NSBF
Newtek Small Business Finance, LLC, a consolidated subsidiary which operates as a nationally licensed SBA lender under the federal Section 7(a) program with PLP status
UPSW
Universal Processing Services of Wisconsin, LLC dba Newtek Merchant Solutions, a wholly-owned controlled portfolio company which markets credit and debit card processing services, check approval services, processing equipment and software
Premier
Premier Payments LLC, a wholly-owned controlled portfolio company which markets credit and debit card processing services, check approval services, processing equipment and software
NTS
Newtek Technology Solutions, Inc., a wholly-owned controlled portfolio company that provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery and other related services
IPM
International Professional Marketing, Inc., a wholly-owned controlled portfolio company which provides consulting, design and implementation of technology solutions for enterprise and commercial clients
SIDCO
SIDCO, LLC dba Cloud Nine, a wholly-owned controlled portfolio company which provides consulting, design and implementation of technology solutions for enterprise and commercial clients
EWS
Excel WebSolutions, LLC, a controlled portfolio company which provides web design services to SMB's
NBCS
CDS Business Services, Inc. dba Newtek Business Credit Solutions, a wholly-owned controlled portfolio company which provides receivable and inventory financing, management services and managerial assistance to SMBs and originates loans under the SBA 504 loan program
SBL
Small Business Lending, LLC, a wholly-owned controlled portfolio company which provides third-party loan services for SBA and non-SBA loans
BSP
ADR Partners, LLC dba banc-serv Partners, LLC, a wholly-owned controlled portfolio company which provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing
NPS
PMTWorks Payroll, LLC dba Newtek Payroll and Benefits Solutions, a wholly-owned controlled portfolio company which provides payroll management, payment and tax reporting services to SMBs
NIA
Newtek Insurance Agency, LLC, a wholly-owned controlled portfolio company which specializes in the sale of commercial and health/benefits insurance products to the SMB market as well as various personal lines of insurance
TAM
Titanium Asset Management LLC, a wholly-owned controlled portfolio company which provides 24/7 customer service and call center support



Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
 
September 30, 2017
 
December 31, 2016
ASSETS
(Unaudited)
 
(Note 1)
Investments, at fair value
 
 
 
SBA unguaranteed non-affiliate investments (cost of $265,132 and $219,784, respectively; includes $176,934 and $197,927, respectively, related to securitization trusts)
$
257,136

 
$
211,471

SBA guaranteed non-affiliate investments (cost of $21,637 and $10,262, respectively)
24,088

 
11,512

Controlled investments (cost of $58,891 and $41,001, respectively)
136,949

 
121,302

Non-control/non-affiliate investments (cost of $0 and $904, respectively)
—

 
904

Investments in money market funds (cost of $9 and $35, respectively)
9

 
35

Total investments at fair value
418,182

 
345,224

Cash and cash equivalents
3,915

 
2,051

Restricted cash
26,602

 
20,845

Broker receivable
25,003

 
2,402

Due from related parties
2,553

 
3,748

Servicing assets, at fair value
19,092

 
16,246

Other assets
10,980

 
10,934

Total assets
$
506,327

 
$
401,450

LIABILITIES AND NET ASSETS
 
 
 
Liabilities:
 
 
 
Bank notes payable
$
66,146

 
$
5,100

Notes due 2022 (Note 7)
7,915

 
7,853

Notes due 2021 (Note 7)
39,027

 
38,767

Notes payable - Securitization trusts (Note 7)
95,376

 
118,122

Notes payable - related parties
20,541

 
1,400

Due to related parties
812

 
1,227

Deferred tax liabilities
5,240

 
5,983

Accounts payable, accrued expenses and other liabilities
15,658

 
13,904

Total liabilities
250,715

 
192,356

Commitments and contingencies (Note 8)
 
 
 
Net Assets:
 
 
 
Preferred stock (par value $0.02 per share; authorized 1,000 shares, no shares issued and outstanding)
—

 
—

Common stock (par value $0.02 per share; authorized 200,000 shares, 17,730 and 14,624 issued and outstanding, respectively)
355

 
293

Additional paid-in capital
234,955

 
188,472

(Distributions in excess of)/undistributed net investment income
(3,069
)
 
8,092

Net unrealized appreciation, net of deferred taxes
11,347

 
13,008

Net realized gains/(losses)
12,024

 
(771
)
Total net assets
255,612

 
209,094

Total liabilities and net assets
$
506,327

 
$
401,450

Net asset value per common share
$
14.40

 
$
14.30


1
See accompanying notes to unaudited condensed consolidated financial statements.


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 September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Investment income:
 
 
 
 
 
 
 
From non-affiliate investments:
 
 
 
 
 
 
 
Interest income
$
4,363

 
$
2,583

 
$
13,233

 
$
7,404

Servicing income
1,794

 
1,551

 
5,163

 
4,581

Other income
705

 
692

 
2,266

 
1,913

Total investment income from non-affiliate investments
6,862

 
4,826

 
20,662

 
13,898

From controlled investments:
 
 
 
 
 
 
 
Interest income
188

 
92

 
456

 
251

Dividend income
2,551

 
2,933

 
7,326

 
7,719

Other income
—

 
—

 
54

 
—

Total investment income from controlled investments
2,739

 
3,025

 
7,836

 
7,970

Total investment income
9,601

 
7,851

 
28,498

 
21,868

Expenses:
 
 
 
 
 
 
 
Salaries and benefits
4,776

 
3,665

 
14,407

 
10,638

Interest
2,986

 
2,341

 
8,133

 
5,804

Depreciation and amortization
107

 
84

 
292

 
209

Professional fees
605

 
807

 
2,054

 
2,519

Origination and servicing
1,433

 
1,537

 
4,086

 
4,190

Change in fair value of contingent consideration liabilities
(748
)
 
—

 
(748
)
 
—

Other general and administrative costs
1,634

 
1,542

 
5,239

 
6,094

Total expenses
10,793

 
9,976

 
33,463

 
29,454

Net investment loss
(1,192
)
 
(2,125
)
 
(4,965
)
 
(7,586
)
Net realized and unrealized gains (losses):
 
 
 
 
 
 
 
Net realized gain on non-affiliate investments
9,938

 
8,716

 
27,537

 
22,536

Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments
1,151

 
(78
)
 
1,201

 
690

Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
(1,023
)
 
1,418

 
238

 
869

Net unrealized (depreciation) appreciation on controlled investments
(500
)
 
4,638

 
(2,243
)
 
10,362

Change in provision for deferred taxes on unrealized depreciation (appreciation) on investments
335

 
(2,028
)
 
745

 
(4,469
)
Net unrealized depreciation on non-control/non-affiliate investments
—

 
—

 
—

 
(43
)
Net unrealized depreciation on servicing assets
(632
)
 
(500
)
 
(1,601
)
 
(1,341
)
Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash
—

 
(1
)
 
—

 
(2
)
Net realized and unrealized gains
9,269

 
12,165

 
25,877

 
28,602

Net increase in net assets
$
8,077

 
$
10,040

 
$
20,912

 
$
21,016

Net increase in net assets per share
$
0.46

 
$
0.69

 
$
1.22

 
$
1.45

Net investment loss per share
$
(0.07
)
 
$
(0.15
)
 
$
(0.29
)
 
$
(0.52
)
Dividends declared per common share
$
0.44

 
$
0.43

 
$
1.20

 
$
1.13

Weighted average shares outstanding
17,487

 
14,556

 
17,076

 
14,515


2
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)
 
Nine Months Ended September 30, 2017
Increase in net assets:
 
Net investment loss
$
(4,965
)
Net realized gains on investments
27,537

Net change in unrealized depreciation on investments
(59
)
Net change in unrealized depreciation on servicing assets
(1,601
)
Net increase in net assets
20,912

Distributions to common stockholders:
 
Dividends to common stockholders from net investment income
(6,151
)
Distributions to stockholders from net realized gains
(14,686
)
Total distributions to stockholders
(20,837
)
Capital share transactions:
 
Issuance of common stock under dividend reinvestment plan
475

Stock-based compensation expense
904

Issuance of common stock in connection with investment in International Professional Marketing, Inc.
1,000

Purchase of vested stock for employee payroll tax withholding
(644
)
Issuance of common stock, net of offering costs
44,708

Net increase in net assets from capital share transactions
46,443

Total increase in net assets
46,518

Net assets at beginning of period
209,094

Net assets at end of period (includes $3,069 of distributions in excess of net investment income)
$
255,612

Common shares outstanding at end of period
17,750

Capital share activity:
 
Shares issued under dividend reinvestment plan
30

Shares issued in connection with public offerings
3,043

Shares issued in connection with investment in International Professional Marketing, Inc.
61

Purchase of vested stock for employee payroll tax withholding
(38
)
Restricted shares issued under Equity Incentive Plan, net of forfeitures
10

Net increase in capital activity
3,106


3
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Cash flows from operating activities:
 
 
 
Net increase in net assets
$
20,912

 
$
21,016

Adjustments to reconcile net increase in net assets to net cash used in operating activities:
 
 
 
Net unrealized depreciation (appreciation) on controlled investments
2,243

 
(10,362
)
Net unrealized appreciation on non-affiliate investments
(1,438
)
 
(1,516
)
Net unrealized depreciation on servicing assets
1,602

 
1,341

Realized gains on non-affiliate investments
(27,668
)
 
(23,299
)
Realized losses on non-affiliate investments
131

 
763

Loss on lease
249

 
1,335

Amortization of deferred financing costs
1,075

 
921

Change in fair value of contingent consideration liabilities
748

 
—

Deferred income taxes
(745
)
 
4,469

Depreciation and amortization
292

 
209

Purchase of loan from SBA
(3,821
)
 
(2,057
)
Purchase of SBA 7(a) loan portfolio
(175
)
 
—

Funding of controlled investments
(27,000
)
 
(6,175
)
Funding of non-control/non-affiliate investments
(3,255
)
 
(1,020
)
Originations of SBA guaranteed non-affiliate investments
(200,620
)
 
(166,212
)
Principal payments received from controlled investments
12,332

 
1,800

Principal payments received from non-control/non-affiliate investments
3,255

 
910

Return of investment from controlled investment
50

 
—

Proceeds from sale of SBA guaranteed non-affiliate investments
217,016

 
183,452

Originations of SBA unguaranteed non-affiliate investments
(62,185
)
 
(51,567
)
Payments received on SBA non-affiliate investments
20,327

 
15,336

Other, net
1,139

 
527

Changes in operating assets and liabilities:
 
 
 
Net decrease in investments in money market funds
26

 
—

Broker receivable
(22,601
)
 
10,588

Due to/from related parties
780

 
542

Other assets
437

 
470

Accounts payable, accrued expenses and other liabilities
(133
)
 
1,300

Change in restricted cash
(4,585
)
 
(1,923
)
Capitalized servicing assets
(4,447
)
 
(3,919
)
Other, net
(80
)
 
23

Net cash used in operating activities
(76,139
)
 
(23,048
)
Cash flows from investing activities:
 
 
 
Purchase of fixed assets
(345
)
 
(294
)
Cash flows from financing activities:
 
 
 
Net borrowings on bank lines of credit
61,046

 
20,819


4
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Net borrowings on related party line of credit
19,141

 
1,753

Repurchase of common stock under share repurchase plan
—

 
(866
)
Proceeds from common shares sold, net of offering costs
44,708

 
—

Purchase of vested stock for employee payroll tax withholding
(644
)
 
—

Proceeds from Notes due 2021
—

 
40,250

Dividends paid
(20,836
)
 
(22,168
)
Payments on Notes Payable - Securitization Trusts
(23,414
)
 
(16,297
)
Change in restricted cash related to securitization trusts
(1,172
)
 
11

Additions to deferred financing costs
(480
)
 
(1,740
)
Other, net
(1
)
 
(10
)
Net cash provided by financing activities
78,348

 
21,752

Net increase (decrease) in cash and cash equivalents
1,864

 
(1,590
)
Cash and cash equivalents—beginning of period
2,051

 
4,308

Cash and cash equivalents—end of period
$
3,915

 
$
2,718

 
 
 
 
Supplemental disclosure of cash flow activities:
 
 
 
Non-cash operating, investing and financing activities:
 
 
 
Reduction of credits in lieu of cash and notes payable in credits in lieu of cash balances due to delivery of tax credits
$
—

 
$
652

Foreclosed real estate acquired
$
212

 
$
387

Issuance of common shares in connection with investment in International Professional Marketing, Inc.
$
1,000

 
$
—

Issuance of common stock under dividend reinvestment plan
$
477

 
$
588

Fixed assets acquired from tenant improvement allowance
$
—

 
$
1,288

            


5
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents


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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Performing SBA Unguaranteed Investments (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dan Cline Transport Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2030

 
$
1,005.5

 
$
1,005.5

 
$
895.1

 
0.35
%
Lone Star Hardware and Home Decor, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2027

 
72.5

 
72.5

 
62.8

 
0.02
%
Threads of Time LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
137.5

 
137.5

 
136.6

 
0.05
%
Miechella Suzette Decker
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
100.0

 
100.0

 
105.6

 
0.04
%
Harco Metal Products Inc
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
489.0

 
489.0

 
467.3

 
0.18
%
SSN GROUP LLC and Dockside Steel Processing LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
1,250.0

 
1,250.0

 
1,264.9

 
0.49
%
Sashshel Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
212.5

 
212.5

 
224.4

 
0.09
%
Dr Richard Rolle JR, PLLC dba Rolle Oral & Facial Surgery PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
875.0

 
875.0

 
864.0

 
0.34
%
Cagwin Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
325.0

 
325.0

 
336.8

 
0.13
%
Pets A Go Go LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
198.1

 
198.1

 
202.6

 
0.08
%
Rhode Island Tennis Management LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
550.0

 
550.0

 
545.3

 
0.21
%
Nicholson Lumber Co Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/28/2030

 
215.0

 
215.0

 
211.5

 
0.08
%
National Media Services, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2027

 
18.8

 
18.8

 
16.2

 
0.01
%
Rhode Island Tennis Management LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2042

 
383.0

 
383.0

 
379.7

 
0.15
%
Moreno Brother's Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2027

 
15.0

 
15.0

 
12.9

 
0.01
%
Complete Care IT LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027

 
15.0

 
15.0

 
12.9

 
0.01
%
Technologist Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2027

 
434.5

 
434.5

 
411.9

 
0.16
%
Inspirations Food Design, Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/26/2042

 
466.0

 
466.0

 
468.5

 
0.18
%

6
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Rollins Construction & Trucking LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
9/26/2027

 
341.3

 
341.3

 
332.0

 
0.13
%
JPS Arthur Kill Rd Bakery Corp dba Aunt Butches of Brooklyn
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
22.5

 
22.5

 
19.6

 
0.01
%
KB Waterjet Cutting LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
10.2

 
10.2

 
9.3

 
—
%
Magnation Corporation
 
Utilities
 
Term Loan
 
Prime plus 2.75%
 
9/22/2027

 
50.0

 
50.0

 
50.8

 
0.02
%
Sallee Pro-Custom Fabrication Shop LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/21/2027

 
9.0

 
9.0

 
9.2

 
—
%
Excel, RP Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
100.0

 
100.0

 
92.2

 
0.04
%
Denek Contracting Inc and Denek Leasing LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
209.8

 
209.8

 
221.5

 
0.09
%
Max Home Deliveries, Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
80.8

 
80.8

 
73.8

 
0.03
%
CR Park Incorporated dba Define Body and Mind
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
100.0

 
27.5

 
26.8

 
0.01
%
Sound Manufacturing, Inc. & Monster Power Equipment, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
200.0

 
200.0

 
189.1

 
0.07
%
Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
162.5

 
162.5

 
160.7

 
0.06
%
Montessori Community School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
391.5

 
391.5

 
380.8

 
0.15
%
NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
1,027.5

 
1,027.5

 
978.6

 
0.38
%
Imagine By Carleen, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
7.5

 
7.5

 
7.3

 
—
%
Alexander Pierce Corporation
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
625.0

 
625.0

 
621.9

 
0.24
%
Venus Pizza, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/20/2042

 
91.3

 
91.3

 
96.3

 
0.04
%
Insight Diagnostic Technologist Services
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
302.8

 
302.8

 
271.7

 
0.11
%
Commonwealth Diagnostics International, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
1,250.0

 
1,250.0

 
1,271.2

 
0.50
%
Stone's Construction and Remodeling, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027

 
5.3

 
5.3

 
4.5

 
—
%
CIS BIG DOG, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2027

 
61.3

 
61.3

 
61.1

 
0.02
%

7
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Party By Design Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2042

 
1,205.0

 
1,205.0

 
1,188.4

 
0.46
%
Li Family Spokane LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042

 
384.5

 
384.5

 
395.6

 
0.15
%
SD Kickboxing LLC dba CKO Kickboxing Dan Diego
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
40.0

 
40.0

 
36.0

 
0.01
%
Clark Realty LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
62.5

 
62.5

 
57.3

 
0.02
%
Inglis Food Mart Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
22.5

 
22.5

 
22.3

 
0.01
%
Clinton Food Market LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/15/2042

 
262.5

 
262.5

 
262.1

 
0.10
%
Tarleton & Family Landscaping, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
83.8

 
83.8

 
74.7

 
0.03
%
Alaska Motor Home Inc
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027

 
331.5

 
331.5

 
285.7

 
0.11
%
Fox Valley Rentals & Investments, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 3.75%
 
9/13/2027

 
7.5

 
7.5

 
7.5

 
—
%
Nails By Mercede LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2027

 
14.3

 
14.3

 
13.3

 
0.01
%
Town & Country Transportation Co. and Popco, LLC.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042

 
168.8

 
168.8

 
178.2

 
0.07
%
Rajbai Maa Inc. dba Nara Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2042

 
388.1

 
388.1

 
375.6

 
0.15
%
Morgan Lynn Kerstetter dba Catherine School of Dance
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027

 
7.5

 
7.5

 
7.6

 
—
%
Health & Performance Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2027

 
20.4

 
20.4

 
17.6

 
0.01
%
Foxtail, LLC and Tottly New Services Corp
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/8/2042

 
291.3

 
291.3

 
291.8

 
0.11
%
Desert Ribs, LLC and Famous Charlie, LLC and Famous Freddie, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/8/2042

 
1,250.0

 
1,250.0

 
1,177.4

 
0.46
%
Echelon Planning Group, LLC dba Echelon Financial Services
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/8/2027

 
7.5

 
7.5

 
7.3

 
—
%
South Fulton Landscape & Nursery, Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/7/2042

 
100.0

 
100.0

 
105.6

 
0.04
%
Crazy Beatz Productions LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 3.75%
 
9/7/2027

 
5.3

 
5.3

 
5.0

 
—
%

8
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Dreaming Big Learning Center Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/5/2042

 
367.8

 
367.8

 
368.2

 
0.14
%
Big Coop's Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/1/2027

 
100.0

 
100.0

 
93.8

 
0.04
%
Blue Eagel Transport Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2027

 
383.5

 
383.5

 
330.6

 
0.13
%
Evernook Valley Milk LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
8/31/2042

 
642.5

 
642.5

 
639.5

 
0.25
%
Bark Life, Inc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/31/2027

 
22.5

 
22.5

 
19.4

 
0.01
%
The Pink Alli, LLC dba The Alli
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/30/2027

 
18.0

 
18.0

 
16.1

 
0.01
%
Busby Outdoor LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042

 
700.0

 
700.0

 
631.0

 
0.25
%
Busby Outdoor LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2042

 
550.0

 
550.0

 
495.8

 
0.19
%
Lake County Tow LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/25/2042

 
87.5

 
87.5

 
87.0

 
0.03
%
Parlay Disributors LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2027

 
112.5

 
112.5

 
98.5

 
0.04
%
InUSA Ventures Inc dba InUSA Services
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/24/2027

 
25.0

 
25.0

 
21.5

 
0.01
%
Genuine Ventures LLC and Seaweed Ventures LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/24/2030

 
557.8

 
557.8

 
521.4

 
0.20
%
R & R Strength & Conditioning Corp dba Crossfit Light House Point
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/23/2042

 
82.5

 
82.5

 
87.1

 
0.03
%
Delicias de Minas Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/22/2027

 
206.3

 
206.3

 
201.2

 
0.08
%
The Holder Grooup LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2027

 
7.5

 
7.5

 
6.5

 
—
%
L&V Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
18.0

 
18.0

 
18.3

 
0.01
%
M.E. Interiors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
16.5

 
16.5

 
14.2

 
0.01
%
Damiano Global Corp
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/21/2027

 
22.5

 
22.5

 
21.1

 
0.01
%
Tier1Solutions, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/18/2027

 
18.8

 
18.8

 
16.8

 
0.01
%

9
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Tony Herring & Associates, Inc
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
8/17/2027

 
7.5

 
7.5

 
6.5

 
—
%
Chester's World Enterprise LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/16/2027

 
22.5

 
22.5

 
20.3

 
0.01
%
D'Amato & Sons Construction, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/11/2027

 
8.3

 
8.3

 
7.5

 
—
%
HTP LLC dba Hot Tomatoes Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/11/2027

 
11.3

 
11.3

 
10.5

 
—
%
Roundhay Partners LLC and Roundhay Farming LLC
 
Crop Production
 
Term Loan
 
Prime plus 2.75%
 
8/8/2042

 
912.5

 
912.5

 
830.5

 
0.32
%
Splashlight LLC, Splashlight Photographic and Digital Studios, LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
8/7/2027

 
500.0

 
500.0

 
446.8

 
0.17
%
L & J Corporate Services Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/4/2027

 
7.5

 
7.4

 
6.5

 
—
%
Furniture Masters Limited Liability Company
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/3/2027

 
9.0

 
9.0

 
7.8

 
—
%
HMG Strategy LLC,
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/2/2027

 
50.0

 
50.0

 
43.1

 
0.02
%
Hope Health Care, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
10.5

 
10.4

 
9.0

 
—
%
Bowl Mor LLC dba Bowl Mor Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
7.5

 
7.5

 
6.4

 
—
%
Royal Blue Investments, Inc. and Cleland Pharmacy LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
7/31/2042

 
53.0

 
52.9

 
54.7

 
0.02
%
Raffi's Inc dba Atlantic Auto Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/31/2027

 
14.3

 
14.2

 
14.1

 
0.01
%
Sharon G McMillen, MA Psychologist, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2027

 
18.6

 
18.5

 
15.9

 
0.01
%
Work of Heart Inc.dba Little Nest Portraits
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2027

 
50.0

 
21.4

 
18.7

 
0.01
%
HQTRONIC LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/27/2027

 
22.5

 
22.4

 
19.3

 
0.01
%
Oberon IT, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/26/2027

 
218.7

 
217.5

 
198.7

 
0.08
%
Gilles Peress Studio LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/25/2027

 
62.5

 
62.1

 
53.6

 
0.02
%
Ocean Trans LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027

 
37.5

 
37.3

 
32.1

 
0.01
%

10
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Obok LLC
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/21/2027

 
12.0

 
11.9

 
11.1

 
—
%
Lil Tots' Learning Center LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/21/2042

 
47.5

 
47.4

 
47.2

 
0.02
%
Nova Solutions, Inc.
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/19/2027

 
25.0

 
24.9

 
24.3

 
0.01
%
Webb Eye Associates, PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/19/2027

 
73.8

 
73.3

 
69.5

 
0.03
%
Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 3.75%
 
7/19/2027

 
7.5

 
7.5

 
7.6

 
—
%
Aitheras Aviation Group, LLC, Aitheras Aviation Group, LLC
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/18/2027

 
825.0

 
819.9

 
711.5

 
0.28
%
Wildflour Bakery & Cafe, LLC
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/17/2027

 
22.5

 
22.4

 
22.7

 
0.01
%
Florida Home and Kitchen LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/14/2027

 
12.0

 
11.9

 
10.3

 
—
%
Koep Companies dba Pipestone True value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/14/2042

 
326.5

 
326.1

 
318.4

 
0.12
%
Rocks Auto Exchange LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/13/2027

 
15.0

 
14.9

 
12.9

 
0.01
%
McCord Holdings, Inc. dba Fast Signs 176101
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2027

 
18.7

 
18.6

 
16.4

 
0.01
%
Thrifty Market Inc dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/6/2027

 
102.5

 
101.9

 
92.1

 
0.04
%
New Chicago Wholesale Bakery Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
15.0

 
14.8

 
14.2

 
0.01
%
The Country House Restaurant, LLC and Pelton Real Estate, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
50.0

 
49.9

 
51.4

 
0.02
%
Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
76.3

 
75.4

 
76.6

 
0.03
%
Bone Bar & Grill LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
73.5

 
73.4

 
75.0

 
0.03
%
J. T. O'Neill Company, L.L.C
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
15.0

 
14.8

 
12.8

 
0.01
%
Hamilton & Associates Real Estate and Investments Firm LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/30/2042

 
54.0

 
53.9

 
54.5

 
0.02
%
J&M Civil Construction Services LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
100.0

 
98.8

 
85.1

 
0.03
%
BQRS, Inc. DBA Gresham Meineke Car Care Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
62.5

 
61.8

 
54.3

 
0.02
%

11
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
JWH Designs, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
106.3

 
105.0

 
90.4

 
0.04
%
Safeguard Construction Company, Inc.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
76.3

 
75.4

 
64.9

 
0.03
%
Veola's Day Spa and Wellness Center Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2027

 
9.1

 
9.0

 
8.1

 
—
%
Steigelbauer Associates Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
309.0

 
305.4

 
310.4

 
0.12
%
Best Bees Company
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
22.5

 
22.2

 
19.2

 
0.01
%
Greensboro Plastic Surgical Associates, PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2042

 
578.0

 
576.9

 
572.0

 
0.22
%
Ocean Trans LLC and Dehal Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
602.5

 
595.5

 
512.9

 
0.20
%
HG Ventures, Inc. dba Diamond Head Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2030

 
1,006.7

 
1,000.4

 
870.4

 
0.34
%
Malhame & Company Publishers & Importers Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
90.0

 
89.1

 
76.9

 
0.03
%
Intellixion LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
3.7

 
3.7

 
3.2

 
—
%
Oakhill Farms, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2030

 
100.0

 
99.2

 
101.0

 
0.04
%
ElKareh Brothers Investment, LLC (OC) Best Choice Meats Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
448.7

 
443.5

 
450.8

 
0.18
%
Miguel Fernando Borda PA dba BGR Dental
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2027

 
50.0

 
49.4

 
44.2

 
0.02
%
Foxhop Fitness, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027

 
91.3

 
91.3

 
79.4

 
0.03
%
Akal Express Inc. dba Truck Trailer Service Stop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/28/2042

 
60.0

 
59.8

 
61.9

 
0.02
%
Old Dominion Transportation Group, Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/28/2027

 
1,133.9

 
1,121.1

 
987.3

 
0.39
%
Citibin, Inc.
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027

 
125.0

 
123.5

 
106.4

 
0.04
%
Auxiliary Systems Inc.,Sharrick Company, LLC & KMN, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/27/2030

 
245.3

 
243.3

 
241.9

 
0.09
%
WB Cleaners Inc. DBA $2.75 Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2027

 
22.5

 
22.2

 
21.9

 
0.01
%
Four Seasons Laser Center Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2042

 
216.3

 
216.3

 
215.8

 
0.08
%

12
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Ains Holding Company, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2027

 
1,175.0

 
1,161.7

 
1,023.7

 
0.40
%
Rustic LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042

 
18.8

 
18.7

 
16.8

 
0.01
%
Vella Construction Enterprises, Inc. dba Vella Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
6/23/2027

 
22.5

 
22.2

 
19.2

 
0.01
%
Northern Industries, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/23/2042

 
57.8

 
57.6

 
60.8

 
0.02
%
Birches Group, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2027

 
50.0

 
49.4

 
42.6

 
0.02
%
Tarver-Henley Inc. and Tar-Hen LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/21/2042

 
320.0

 
319.2

 
316.6

 
0.12
%
704 Meat Center Inc. dba El Mercado and La Plaza Mercado
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/20/2042

 
175.0

 
174.5

 
180.4

 
0.07
%
Sanabi Investment ,,LLC dba Oscar's Moving and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/20/2027

 
124.0

 
122.6

 
111.2

 
0.04
%
Scarlet Spartan Inc.dba FastSigns of Brighton
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2027

 
55.0

 
55.0

 
48.5

 
0.02
%
Don G. Timpton DDS & Associates PA and Indsaad Properties,LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2042

 
400.0

 
399.0

 
383.4

 
0.15
%
JAM Media Solutions, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2027

 
62.5

 
61.8

 
53.2

 
0.02
%
All Regional Recyclers of Wood LLC dba ARROW,Superior Carting, LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2042

 
314.0

 
313.3

 
309.2

 
0.12
%
Tele Tax Express Inc., El Rancho Paiso, LLC and Nestor Romero
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
92.5

 
92.3

 
94.9

 
0.04
%
Susan Hughes dba Aloha Junction B and B
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
62.5

 
61.9

 
65.3

 
0.03
%
ESA 365 Corp and Lucathor Realty LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
22.5

 
22.4

 
22.7

 
0.01
%
Hull's Kitchen, LLC and HK Too, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/14/2042

 
96.3

 
96.2

 
100.8

 
0.04
%
Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/12/2027

 
118.8

 
117.4

 
110.2

 
0.04
%
Refoleen Inc dba Spice and Tea Exchange
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/8/2027

 
3.5

 
3.5

 
3.0

 
—
%
Earth First Recycling, LLC and 191 Clark Road, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/5/2027

 
354.5

 
352.3

 
351.6

 
0.14
%

13
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Skydive California, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2027

 
55.0

 
54.5

 
55.4

 
0.02
%
SCW, LLC dba Arthur Murray Dance Studio
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2042

 
146.0

 
145.6

 
145.6

 
0.06
%
Speaker City, Inc.and Speaker Town, LLC dba Rollin Thunder
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/1/2042

 
45.6

 
45.5

 
46.3

 
0.02
%
Sage Oil LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
22.5

 
22.1

 
19.0

 
0.01
%
Impact Grounds Maintenance and Design, Inc.dba Impact Landscaping
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042

 
79.4

 
79.2

 
82.1

 
0.03
%
Ricnet III, Inc. dba Edible Arrangements
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
15.0

 
14.6

 
12.8

 
0.01
%
Funtime, LLC and Universal Entertainment Group LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/31/2027

 
66.2

 
65.1

 
57.0

 
0.02
%
Haroon Baig,Inc.dba US1 Petrol
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2042

 
264.0

 
263.0

 
277.5

 
0.11
%
Eagle Wood Works LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027

 
12.0

 
11.8

 
10.8

 
—
%
Hurricane Group, Inc.
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
5/26/2027

 
75.0

 
73.7

 
63.5

 
0.02
%
Mitchell Auto Repair, LLC and and C&M Mitchell, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
193.2

 
193.0

 
197.3

 
0.08
%
Swantown Inn & Spa LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
116.0

 
28.4

 
30.0

 
0.01
%
Chet Lemon Enterprises LLC dba All American Sports
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
792.5

 
789.4

 
833.0

 
0.33
%
Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
213.3

 
209.5

 
197.3

 
0.08
%
Beyond Waves A Unique Salon LLC and Lori Ann Carlson
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
15.0

 
14.7

 
12.8

 
0.01
%
Jung Design Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
9.0

 
8.8

 
7.6

 
—
%
Locavore LLC dba Paloma Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/25/2027

 
50.0

 
49.1

 
43.9

 
0.02
%
Abdul Naushad MD PC dba Advanced Pain Centers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/25/2042

 
393.8

 
392.2

 
403.0

 
0.16
%
Shaffer Automotive Repair, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/24/2030

 
135.8

 
134.1

 
125.5

 
0.05
%
Juliador Resources LLC DBA Cue Hair Salon and Skin Care
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2027

 
22.5

 
22.1

 
19.0

 
0.01
%

14
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Innovim, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2027

 
337.5

 
331.5

 
285.5

 
0.11
%
Southeast Recycling, LLC and Southeast Land Holdings LLC dba 67 Motor
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
181.4

 
180.7

 
188.8

 
0.07
%
Gill Express Inc. and Gill Express 2 LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
338.7

 
337.4

 
333.6

 
0.13
%
Prestige Construction of Florida, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/23/2042

 
336.4

 
335.1

 
326.1

 
0.13
%
Enfield Tractor & Equipment Co.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
296.3

 
291.2

 
278.7

 
0.11
%
PS Camping, Inc. dba Prospectors RV Resort
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2042

 
257.7

 
256.7

 
269.3

 
0.11
%
GEM2K, LLC dba Precision Precast Group
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
162.5

 
159.6

 
143.2

 
0.06
%
Hayden Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
262.5

 
257.9

 
237.8

 
0.09
%
Tres K Deli,Grocery,Fruit and Meat Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
8.3

 
8.1

 
7.5

 
—
%
Iron Men Home Repair, Inc. and Ironmen House Lifting Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/19/2042

 
582.5

 
580.2

 
585.6

 
0.23
%
J Harris Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/19/2027

 
19.5

 
19.2

 
18.2

 
0.01
%
New Image Building Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2027

 
150.8

 
148.1

 
132.4

 
0.05
%
Bay Car Wash LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042

 
120.7

 
120.3

 
121.7

 
0.05
%
Mr. B's Bicycles & Mopeds, Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/18/2042

 
146.7

 
146.2

 
146.7

 
0.06
%
Waterford Plumbing Co, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2027

 
50.0

 
49.1

 
43.1

 
0.02
%
Computech Computers Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/17/2027

 
50.0

 
49.1

 
42.3

 
0.02
%
Arco Electrical Contractors Inc. dba Arco Construction Group
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027

 
360.0

 
353.6

 
325.1

 
0.13
%
5 Stars Learning Center Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/16/2042

 
61.8

 
61.5

 
61.9

 
0.02
%
Batter & Company,LLC dba Batter Co. Dessert Collection
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/16/2027

 
53.8

 
52.8

 
46.5

 
0.02
%
Band Sawn Lumber,LLC and Nathan Ryan Adams
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/15/2042

 
113.8

 
113.3

 
111.6

 
0.04
%

15
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Keys Armored Express, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
40.0

 
39.3

 
35.3

 
0.01
%
Sanderson Distribution Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
10.5

 
10.3

 
8.9

 
—
%
SG Linke LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
5/12/2027

 
108.3

 
108.3

 
106.3

 
0.04
%
B G F Bobby Q's Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027

 
7.5

 
7.4

 
7.2

 
—
%
Estelle Finkel Educational Associates,LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
5/11/2027

 
118.7

 
117.8

 
101.5

 
0.04
%
Labmates,LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/10/2027

 
100.0

 
98.2

 
93.9

 
0.04
%
NHS, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
88.5

 
86.9

 
78.2

 
0.03
%
NHS, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/9/2042

 
21.9

 
21.8

 
20.5

 
0.01
%
Innovation Transport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
86.3

 
84.7

 
80.0

 
0.03
%
1872 Rosecrans, LLC dba Goodbar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/9/2027

 
62.5

 
62.2

 
54.0

 
0.02
%
Arclay ,LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/5/2030

 
145.9

 
144.1

 
132.8

 
0.05
%
Benchmark Building, Inc.
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/5/2027

 
22.5

 
22.1

 
19.0

 
0.01
%
Cable Management LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
5/3/2027

 
59.6

 
58.5

 
54.9

 
0.02
%
Fine Arts Center of Easley, Inc. dba Midtown Music
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
5/2/2042

 
116.3

 
116.1

 
122.5

 
0.05
%
Zahmel Restaurant Suppliers Corp dba Cash & Carry
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/28/2027

 
88.8

 
86.6

 
75.6

 
0.03
%
Love and Glory Learning Center, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/28/2042

 
78.0

 
77.6

 
77.1

 
0.03
%
Georgia Productions Services LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
4/28/2027

 
91.2

 
89.1

 
81.8

 
0.03
%
JMA Inc. dba Primecut and Mezzo; Primecut at Marquee
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042

 
222.5

 
221.3

 
233.6

 
0.09
%
Sneads Ferry Foods, Inc. dba DQ Grill & Chill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042

 
618.3

 
330.0

 
348.2

 
0.14
%

16
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Asheville's Fun Depot, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2027

 
87.5

 
85.4

 
86.8

 
0.03
%
Carl Joseph Johnston dba Viking Transport
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/26/2027

 
53.3

 
31.8

 
30.1

 
0.01
%
Resident Research, LLC
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2027

 
100.0

 
97.6

 
84.1

 
0.03
%
Getting Even LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/21/2027

 
7.5

 
7.3

 
6.6

 
—
%
Ralph's Hair Salon, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2042

 
50.0

 
49.7

 
50.6

 
0.02
%
M.E. Interiors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/20/2027

 
139.2

 
135.9

 
117.0

 
0.05
%
MJ and M Home Improvements LLC DBA House Doctors
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2027

 
20.5

 
20.0

 
17.6

 
0.01
%
Condron Brothers LLC DBA Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/19/2027

 
116.0

 
116.0

 
105.0

 
0.04
%
Affordable Auto Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/17/2027

 
12.8

 
12.4

 
11.6

 
—
%
Carpeteria (Markarian) Co.
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/13/2027

 
132.8

 
129.7

 
128.6

 
0.05
%
Bloomer Machine & Fab, Inc and Dale Stertz Properties
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/13/2042

 
205.5

 
204.4

 
210.6

 
0.08
%
Butternuts Beer and Ale LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/12/2027

 
73.7

 
72.0

 
73.2

 
0.03
%
Citizens Lanes, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
619.4

 
616.1

 
648.1

 
0.25
%
The Altitude Group, LLC and Core Home Security, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
50.0

 
48.6

 
41.4

 
0.02
%
Golden Hen Inc. dba Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
64.8

 
62.9

 
54.4

 
0.02
%
Shelter Harbor Inn, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
207.5

 
206.4

 
217.1

 
0.08
%
Landmark Ventures USA, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
187.5

 
182.1

 
155.4

 
0.06
%
MIT LLC
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
87.5

 
87.0

 
91.6

 
0.04
%

17
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Applied Integrated Technologies, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2027

 
125.0

 
121.4

 
103.7

 
0.04
%
Bear Trail Lodge LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/31/2042

 
552.5

 
549.6

 
571.2

 
0.22
%
KWG Industries LLC dba Peterson & Marsh Metal Industries
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2027

 
30.0

 
29.1

 
28.4

 
0.01
%
Sea Smoke Barbeque, Corp and Danwen LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
236.5

 
233.6

 
235.0

 
0.09
%
Signature Rooms, Inc dba Gallery Furniture
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
495.8

 
493.1

 
514.8

 
0.20
%
Schafer Fisheries Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2042

 
258.6

 
251.5

 
257.2

 
0.10
%
Douglas K. Soderblom . dba Loma Linda Optometry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2027

 
100.0

 
97.1

 
87.3

 
0.03
%
Discount Price, LLC dba Robert's Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042

 
206.3

 
205.2

 
208.2

 
0.08
%
First Sail Group Inc. and Omen Board Industires LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2027

 
20.0

 
19.4

 
17.8

 
0.01
%
Gauri Hospitality Group LLC dba Microtel Inns & Suites by Wyndham
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/29/2042

 
1,056.3

 
1,050.6

 
1,096.2

 
0.43
%
H and H Hotshot Services, Inc. dba AA Hotshot & Logistics
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2030

 
97.5

 
95.6

 
82.5

 
0.03
%
New England Country Day School, Inc. and Thomas D. Walker
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/28/2042

 
362.8

 
362.6

 
364.1

 
0.14
%
American Pharmaceutical Innovation Company, LLC
 
Chemical Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2027

 
30.0

 
29.1

 
25.0

 
0.01
%
Heil & Hornik LLC dba Elysium Tennis
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
928.6

 
923.6

 
921.1

 
0.36
%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
582.9

 
137.2

 
144.3

 
0.06
%
Ericon Inc. dba Quik Pik
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/24/2027

 
62.5

 
60.7

 
58.3

 
0.02
%
Robert Dixon PA dba Law Offices of Robert Dixon
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2042

 
435.5

 
424.2

 
443.0

 
0.17
%
Denton Bio Fuels LLC and American Bio Source LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
59.3

 
57.5

 
52.3

 
0.02
%
Color Graphic Press, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
120.0

 
116.5

 
118.0

 
0.05
%

18
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
JBK Truck Trailer and Bus Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/23/2042

 
88.8

 
78.8

 
79.5

 
0.03
%
Executive Fitness & Nutrition Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/23/2027

 
20.3

 
19.7

 
19.2

 
0.01
%
Baton Rouge Cargo Services Inc. and 6507 Westport, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/22/2042

 
643.0

 
639.6

 
656.4

 
0.26
%
Vehicle Safety supply LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/21/2027

 
22.5

 
21.8

 
18.7

 
0.01
%
J Sivilis LLC dba Pet Wants
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/17/2027

 
12.3

 
12.0

 
10.5

 
—
%
Reservoir International LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027

 
100.0

 
97.1

 
89.8

 
0.04
%
The Purple Cow House of Pancake Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2042

 
162.5

 
160.9

 
169.2

 
0.07
%
Texcor, Inc.dba Texas Corral,Texas Coral Restaurants II, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/16/2027

 
300.0

 
291.4

 
295.2

 
0.12
%
Alive Design, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027

 
22.5

 
22.0

 
18.8

 
0.01
%
1MTX LLC and Sunrise Transportation and Logistics, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/13/2027

 
702.8

 
683.0

 
583.0

 
0.23
%
Dwayne Bernard Tate
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/10/2027

 
10.5

 
10.2

 
9.3

 
—
%
Elegant Occasions, LLC dba E Productions
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/10/2042

 
588.2

 
586.1

 
587.5

 
0.23
%
Anthony LLC dba Star of Woodward Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/9/2042

 
115.0

 
114.5

 
120.4

 
0.05
%
E & P Holdings 1 LLC and Evans & Paul Unlimited Corp.
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/9/2027

 
125.0

 
121.4

 
106.1

 
0.04
%
Allegro Assisted Living Of Texas
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
3/6/2027

 
96.0

 
93.2

 
94.4

 
0.04
%
Robbie E. Bakery and Cafe LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/3/2027

 
62.5

 
60.7

 
51.8

 
0.02
%
Podium Auto Sales Inc and RRS Property, LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/3/2042

 
90.7

 
90.3

 
89.8

 
0.04
%
SSI Refrigerated Express Inc. and Robert M Stallone dba SSI Express
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027

 
235.5

 
227.3

 
194.1

 
0.08
%
Weeping Willow Kennels, Inc and Aileen N Black
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042

 
140.0

 
139.1

 
141.5

 
0.06
%
Getting Even LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2027

 
96.3

 
92.9

 
82.7

 
0.03
%

19
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Total Document Solutions Inc and,TDS Services, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/27/2030

 
312.5

 
305.1

 
279.9

 
0.11
%
Teracore Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
163.7

 
158.0

 
134.9

 
0.05
%
John Finn Associates LLC, Greenslate LLC, Finn Technology, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
675.0

 
651.3

 
623.5

 
0.24
%
McNally Enterprises Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2027

 
65.0

 
62.7

 
55.8

 
0.02
%
B & J Bicycle Shop Inc.
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027

 
15.0

 
14.5

 
14.7

 
0.01
%
3W Enterprises LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/24/2042

 
81.8

 
81.2

 
81.5

 
0.03
%
TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/24/2027

 
106.3

 
103.7

 
96.4

 
0.04
%
Victorian Restaurant and Tavern, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/22/2042

 
107.5

 
106.8

 
104.7

 
0.04
%
DER Services, LLC dba A.K.A. Sports
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
2/17/2042

 
40.0

 
39.8

 
41.8

 
0.02
%
Bike Slug, LLC, Bike Slug Holdings Inc. and Seven Rivers Group ,LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/17/2027

 
19.5

 
18.8

 
16.1

 
0.01
%
Ameritube, LLC and Ravone Properties, LLC
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/14/2042

 
185.0

 
183.8

 
193.4

 
0.08
%
R&S Barnes Enterprises, Inc. dba Massage Envy Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2027

 
93.8

 
90.5

 
78.2

 
0.03
%
Baton Rouge Cargo Services Inc. and 2808 Court Street, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
247.5

 
245.8

 
252.3

 
0.10
%
Sushiya Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/10/2027

 
18.8

 
18.1

 
16.0

 
0.01
%
Select Propane & Fuel Inc. and Select Fuel & Convenience LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2030

 
1,250.0

 
1,222.6

 
1,121.1

 
0.44
%
Maximo Canot dba Wash and Dry Laundrymat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
137.5

 
136.7

 
140.7

 
0.06
%
Marvic Enterprises Inc dba Jordan's Liquor
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/10/2042

 
219.0

 
217.6

 
221.8

 
0.09
%
Harrison Logging Company LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
2/9/2027

 
106.3

 
102.5

 
92.6

 
0.04
%
8 Minute Oil Change Auto Repair & Tire Center and Jumir L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
2/7/2042

 
327.5

 
325.5

 
319.9

 
0.13
%
Christopher Borgia
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2027

 
12.9

 
12.5

 
10.8

 
—
%

20
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Splashlight LLC, Splashlight Photographic & Digital Studios LLC
 
Management of Companies and Enterprises
 
Term Loan
 
Prime plus 2.75%
 
2/2/2027

 
750.0

 
723.8

 
641.9

 
0.25
%
DBMS Consulting, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/1/2042

 
185.0

 
183.8

 
180.6

 
0.07
%
Brandco, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/31/2027

 
43.7

 
41.9

 
35.8

 
0.01
%
Chidlren's House Learning, Inc and Tarps Investment Group
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2042

 
321.3

 
319.1

 
319.5

 
0.12
%
Grand Center Inn L.P. dba Grand Center Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
1/31/2027

 
15.0

 
14.4

 
14.6

 
0.01
%
AP6 LLC and Amishp LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042

 
127.5

 
107.8

 
113.4

 
0.04
%
Fave Realty, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042

 
54.5

 
54.1

 
54.8

 
0.02
%
ZMKNY Tires Inc dba Houston International Tires
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
107.5

 
106.8

 
112.3

 
0.04
%
House of Bread & Coffee Corp dba Casa Do Pao
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
176.0

 
135.7

 
131.9

 
0.05
%
SRC Publishing LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2027

 
22.5

 
21.6

 
18.4

 
0.01
%
Return to Excellence Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/27/2027

 
17.7

 
17.0

 
17.2

 
0.01
%
Sideways Sports Lounge and Jonathan E. McGrew and Patricia C. McGrew
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2027

 
18.0

 
17.3

 
14.7

 
0.01
%
Fox Valley Rentals & Investments LLC and Brian M Tomaszewski
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/20/2042

 
42.5

 
42.2

 
42.0

 
0.02
%
Rhone Wolf Vineyard LLC, Goldline Brands Inc. and Myka Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/19/2030

 
250.4

 
243.4

 
224.5

 
0.09
%
Jolibe LLC and Jolibe Atelier LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/18/2027

 
10.5

 
10.1

 
8.9

 
—
%
Eickmann Management Group LLC dba Jimmy Johns of Dundee
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/17/2027

 
93.7

 
93.0

 
91.3

 
0.04
%
Ramjay Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/13/2027

 
435.0

 
420.4

 
381.1

 
0.15
%
Fullbro Trust dba Menemsha Blues
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
1/13/2027

 
22.5

 
21.6

 
21.9

 
0.01
%

21
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Echelon Enterprises, Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
1/10/2027

 
50.0

 
48.0

 
48.6

 
0.02
%
Fort Smith Wings Inc. dba Wing Stop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
19.5

 
18.6

 
16.6

 
0.01
%
Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2041

 
419.9

 
417.1

 
412.2

 
0.16
%
Joshua L. Baker
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026

 
15.7

 
15.0

 
12.8

 
0.01
%
Jacliff Investments Inc. dba International health Technologies
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026

 
125.0

 
119.1

 
101.6

 
0.04
%
New Image Building Services, Inc.dba The Maids Servicing Oakland
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2026

 
43.8

 
41.7

 
37.0

 
0.01
%
Chestnut Street Associates, LLC and Metropolitan Solutions, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/19/2041

 
275.0

 
272.3

 
261.6

 
0.10
%
Means Enterprises LLC dba FastFrame Frisco
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/16/2026

 
22.5

 
21.4

 
18.6

 
0.01
%
Soon Im. Chin dba Stan C-Store
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
212.5

 
210.4

 
217.6

 
0.09
%
Sempco, Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
42.0

 
41.6

 
43.7

 
0.02
%
Allied Welding Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
750.0

 
744.7

 
731.9

 
0.29
%
Ericon, Inc. dba Quik Pik
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
332.2

 
329.5

 
328.3

 
0.13
%
White Hawk Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026

 
1,097.7

 
1,047.7

 
893.6

 
0.35
%
Elita 7, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
712.5

 
705.5

 
718.9

 
0.28
%
New Chicago Wholesale Bakery, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041

 
452.7

 
448.3

 
442.6

 
0.17
%
Techni-Pro Institute LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026

 
190.0

 
181.0

 
159.2

 
0.06
%
Trison Enterprises Inc.dba Lee's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
407.5

 
403.5

 
407.7

 
0.16
%
Cardinal Homes Inc. and Bret A Berneche
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
121.3

 
120.0

 
125.9

 
0.05
%
HMG Strategy, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026

 
50.0

 
47.6

 
40.6

 
0.02
%
D and E Hardware Co. and D and E Pump Sales and Service
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
528.6

 
523.4

 
520.2

 
0.20
%

22
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Cardinal Homes Inc,.Alouette Holdings Inc.
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026

 
1,071.3

 
1,020.5

 
1,032.9

 
0.40
%
AGG Management Team LLC dba Chevron
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041

 
287.5

 
284.7

 
299.3

 
0.12
%
Wayfarer Bicycle LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
92.5

 
91.6

 
89.1

 
0.03
%
Success Advertising Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
466.5

 
461.9

 
478.5

 
0.19
%
Roast Beef Levittown LLC dba Arby's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/13/2026

 
465.0

 
447.7

 
453.1

 
0.18
%
Queen Express LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041

 
187.5

 
185.6

 
192.5

 
0.08
%
Recycling Revolution,LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/9/2041

 
92.2

 
91.3

 
90.7

 
0.04
%
Myndshft Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026

 
775.0

 
738.3

 
657.7

 
0.26
%
Mack Team Enterprises Inc.dba The UPS Store #6815
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026

 
20.4

 
19.4

 
17.4

 
0.01
%
^New Life Hospital LLC
 
Hospitals
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041

 
1,195.5

 
1,184.9

 
1,245.8

 
0.49
%
Imagine By Carleen Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041

 
52.5

 
52.0

 
52.1

 
0.02
%
Hanson's Greeks LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2026

 
11.3

 
10.7

 
10.8

 
—
%
Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/7/2029

 
71.2

 
68.9

 
65.1

 
0.03
%
T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/7/2026

 
100.0

 
95.7

 
89.5

 
0.04
%
Lan Doctors, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2026

 
237.5

 
226.2

 
222.1

 
0.09
%
Lilo Holdings LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/5/2026

 
15.9

 
15.1

 
13.7

 
0.01
%
^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2041

 
352.5

 
349.6

 
360.6

 
0.14
%
^Ericon, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/1/2041

 
726.0

 
720.2

 
721.4

 
0.28
%
Noso Development LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/1/2026

 
75.0

 
71.4

 
60.9

 
0.02
%

23
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Quick Ship, LLC
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
10.5

 
9.9

 
8.5

 
—
%
^Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence,LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2041

 
67.5

 
66.7

 
70.2

 
0.03
%
Sharaz Shah DBA Thomas Jewelers
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
8.1

 
7.7

 
6.5

 
—
%
Choe Trading Group, Inc.dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
22.5

 
21.3

 
20.9

 
0.01
%
Studio Find It Georgia, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
7.5

 
7.1

 
6.2

 
—
%
RD Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
213.8

 
202.3

 
174.8

 
0.07
%
Imaginarium Foods LLC,
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042

 
376.7

 
370.5

 
376.2

 
0.15
%
B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026

 
22.5

 
21.3

 
19.0

 
0.01
%
^Usman Jalil, LLC dba Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/29/2041

 
233.2

 
230.7

 
223.6

 
0.09
%
Honor Mansion, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026

 
87.5

 
82.8

 
83.8

 
0.03
%
Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026

 
1,125.0

 
1,064.6

 
908.0

 
0.36
%
Merchant Coterie, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
125.0

 
118.3

 
100.9

 
0.04
%
CRK Mens, LLC dba Spiff for Men
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
106.3

 
100.7

 
87.8

 
0.03
%
WPN Recycling Company LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
22.5

 
21.3

 
21.5

 
0.01
%
Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026

 
60.0

 
56.8

 
49.1

 
0.02
%
Rognes Corp dba RTS
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
389.2

 
366.9

 
335.5

 
0.13
%
Bouquet Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041

 
125.0

 
123.6

 
124.6

 
0.05
%
^J.B.K Truck Trailer and Bus Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041

 
435.0

 
430.1

 
428.7

 
0.17
%
6E Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
175.0

 
163.8

 
150.9

 
0.06
%

24
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Broms Asset Management LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026

 
125.0

 
118.3

 
100.9

 
0.04
%
Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/21/2026

 
100.0

 
94.6

 
95.8

 
0.04
%
Catherine Christine Morin dba Purr-Fect Pets
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2026

 
18.7

 
17.7

 
15.1

 
0.01
%
Stratmar Systems Inc dba Stratmar Retail Services
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2026

 
68.5

 
64.8

 
65.6

 
0.03
%
Hoosier Health Plus, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2026

 
125.0

 
118.3

 
111.4

 
0.04
%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2041

 
446.0

 
440.9

 
451.4

 
0.18
%
Hackensack Steel Corporation and Luzerne Ironworks Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
239.2

 
226.3

 
228.9

 
0.09
%
^Panther Ironworks and Rigging Solutions LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
151.3

 
143.1

 
131.2

 
0.05
%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026

 
188.7

 
178.6

 
176.9

 
0.07
%
MIK LLC dba Firehouse Subs
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
200.0

 
192.9

 
166.8

 
0.07
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
43.7

 
41.4

 
38.6

 
0.02
%
^Dyer Properties, LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041

 
240.3

 
237.5

 
234.5

 
0.09
%
^Big Apple Entertainment Partners LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026

 
175.0

 
165.6

 
141.2

 
0.06
%
^Bovill Creative,LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041

 
281.2

 
278.2

 
292.5

 
0.11
%
Surgarloaf Concepts LLC dba Fat Biscuit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/8/2026

 
168.8

 
165.0

 
167.0

 
0.07
%
^Fine Line Interiors, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/4/2041

 
87.5

 
82.4

 
86.7

 
0.03
%
131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/3/2041

 
127.5

 
125.1

 
127.8

 
0.05
%
^Veracruz Shabo, LLC; Waterfalls Quick Lube LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/1/2041

 
118.7

 
117.9

 
120.3

 
0.05
%
Glocecol LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/1/2026

 
75.0

 
70.9

 
71.8

 
0.03
%

25
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Middlesex Auto Sales Corp
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041

 
125.0

 
123.5

 
126.3

 
0.05
%
^Moolchan Enterprises LLC dba Staying Green
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026

 
18.1

 
17.1

 
16.1

 
0.01
%
^Bloomquist Communications Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026

 
60.0

 
56.4

 
48.1

 
0.02
%
^Woodstock Enterprises Corp dba True Scent Candle Co.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041

 
88.8

 
87.7

 
85.4

 
0.03
%
^Patina Investment, Inc and Ram & Sons, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/27/2041

 
175.0

 
172.8

 
181.6

 
0.07
%
Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2029

 
225.0

 
218.3

 
212.7

 
0.08
%
^FibAire Communications, LLC
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
10/27/2026

 
107.5

 
101.0

 
92.7

 
0.04
%
^Bonita Stone LLC and Castone Creations Inc
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2041

 
264.4

 
261.0

 
259.9

 
0.10
%
^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc.
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/25/2026

 
131.2

 
123.4

 
124.9

 
0.05
%
Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
10/24/2026

 
425.0

 
399.5

 
398.7

 
0.16
%
Eco Vehicle Systems LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/21/2026

 
955.5

 
898.9

 
900.9

 
0.35
%
Worldwide Estate, Inc. dba Washington Heights Manor
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/21/2041

 
225.0

 
221.7

 
233.1

 
0.09
%
^Gold Wind Logistics LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/20/2041

 
175.0

 
173.4

 
182.3

 
0.07
%
^Speaker City, Inc. dba Rollin Thunder
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2041

 
125.0

 
123.4

 
125.6

 
0.05
%
^Maine Service Corp
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026

 
206.3

 
192.5

 
180.6

 
0.07
%
^Justin Partlow
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026

 
19.5

 
18.3

 
15.6

 
0.01
%
^Reliable Recovery Services LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/7/2026

 
112.5

 
105.7

 
96.3

 
0.04
%
^Ailky Corporation
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026

 
250.0

 
235.0

 
206.0

 
0.08
%
^Wyspen Corporation dba Charlestown Ace
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026

 
36.0

 
33.8

 
28.9

 
0.01
%
^MegaPhase, LLC
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026

 
150.0

 
139.9

 
135.1

 
0.05
%

26
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Seaway LLC and Reklaw LLC dba Allure Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041

 
137.5

 
135.4

 
142.3

 
0.06
%
^JJA Transportation Management Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026

 
52.5

 
49.0

 
41.7

 
0.02
%
^Adelwerth Bus Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041

 
242.8

 
239.3

 
237.0

 
0.09
%
Adelwerth Bus Corporation, Transportation Leasing Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029

 
654.0

 
624.3

 
601.6

 
0.24
%
Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2029

 
671.5

 
640.3

 
600.1

 
0.23
%
^Las Casuelas Del Este Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/29/2041

 
800.0

 
791.6

 
814.7

 
0.32
%
^Thunderdome Racing Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/29/2026

 
19.0

 
17.8

 
17.6

 
0.01
%
^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
850.0

 
836.9

 
879.5

 
0.34
%
^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
405.8

 
400.1

 
382.5

 
0.15
%
^Beadon Inc
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
22.5

 
21.0

 
21.0

 
0.01
%
^CNC Precision Machine, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041

 
1,250.0

 
1,235.9

 
1,236.2

 
0.48
%
^CD Game Exchange Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
22.5

 
21.0

 
17.9

 
0.01
%
Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026

 
648.0

 
608.3

 
559.8

 
0.22
%
^Kyle M Walker DDS,PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
217.8

 
204.7

 
180.1

 
0.07
%
Reynolds Fence & Guardrail Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
629.6

 
587.1

 
560.5

 
0.22
%
^Luna Nueva LLC dba Bio Builders
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
15.0

 
14.0

 
12.4

 
—
%
^Luv 2 Play Nor Cal, LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026

 
52.5

 
49.0

 
43.8

 
0.02
%
^Sarah S Olelewe MD Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041

 
292.4

 
288.5

 
289.4

 
0.11
%
^TPFC,LLC dbaThe Picture Frame Company
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041

 
58.8

 
57.9

 
58.1

 
0.02
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026

 
9.0

 
8.4

 
8.3

 
—
%

27
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^PeopleBest Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026

 
15.0

 
14.0

 
11.9

 
—
%
^Mr. Mulch, Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2041

 
405.7

 
399.5

 
375.3

 
0.15
%
^B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/23/2026

 
87.5

 
81.6

 
72.7

 
0.03
%
^InformationTelevision Network Inc
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
9/22/2041

 
836.8

 
825.5

 
858.5

 
0.34
%
^GRA Financial Services Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/22/2026

 
12.0

 
11.2

 
9.5

 
—
%
^Wrecking Crew Media LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/21/2026

 
50.0

 
46.6

 
39.7

 
0.02
%
^Cuppiecakes LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2041

 
22.5

 
22.2

 
22.2

 
0.01
%
^Benoit's Towing and Recovery LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026

 
12.0

 
11.2

 
9.7

 
—
%
^Consulting Solutions Inc. and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026

 
22.5

 
21.0

 
19.8

 
0.01
%
^Brittany Burns LLC dba Dreams Come True
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2026

 
12.9

 
12.0

 
12.2

 
—
%
^Eyncon LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/16/2041

 
50.0

 
49.2

 
49.9

 
0.02
%
^Tresa S.Parris dba Wagging Tails Grooming
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/16/2026

 
8.0

 
7.6

 
6.5

 
—
%
^The Merrin Group LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2026

 
175.0

 
163.2

 
157.0

 
0.06
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026

 
145.5

 
135.9

 
126.7

 
0.05
%
^Atlantic Alarm Systems and Services LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026

 
15.4

 
14.4

 
12.7

 
—
%
^Metropet Dog Center, Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2041

 
109.2

 
107.6

 
109.3

 
0.04
%
^Marquis Cattle Company
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
9/13/2026

 
50.0

 
47.1

 
47.6

 
0.02
%
^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2041

 
82.5

 
81.2

 
79.6

 
0.03
%
^Artisan Infrastructure Holdings, LLC
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2026

 
125.0

 
116.6

 
99.3

 
0.04
%

28
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^SRA Mechanicial Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/6/2041

 
43.8

 
43.1

 
45.1

 
0.02
%
^Sandia Enterprises Inc dba Massage Envy Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/6/2026

 
62.5

 
58.3

 
49.7

 
0.02
%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2026

 
125.0

 
115.9

 
101.5

 
0.04
%
^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2026

 
586.7

 
543.4

 
487.2

 
0.19
%
^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
649.6

 
638.7

 
595.9

 
0.23
%
^Clark Realty LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
237.5

 
233.5

 
224.8

 
0.09
%
^Raem Corporation dba Dryclean Express
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041

 
72.5

 
71.3

 
74.0

 
0.03
%
^Warren Dale Warrington dba Custom Paint and Body
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2041

 
101.2

 
99.5

 
101.8

 
0.04
%
^TAGR Inc dba Miami Grill 137and John Nakis
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/26/2026

 
106.8

 
98.9

 
86.6

 
0.03
%
^Albert Basse Associates Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
62.5

 
57.9

 
58.4

 
0.02
%
^Avery Management Inc. dba Whetstone Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
10.6

 
9.9

 
8.4

 
—
%
^Dean Technology Inc
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/25/2041

 
387.1

 
380.6

 
397.1

 
0.16
%
^Rosmel Pools Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
22.5

 
20.8

 
18.2

 
0.01
%
^Tabadesa Associates Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
22.5

 
20.8

 
17.8

 
0.01
%
^TR Companies LLC dba True Value Rental and Liberty Rental 4 U
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026

 
90.0

 
83.4

 
71.1

 
0.03
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2041

 
500.0

 
492.0

 
513.3

 
0.20
%
^Tim's Tire & Automotive Center, LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/16/2026

 
816.6

 
768.3

 
697.1

 
0.27
%
^Luv 2 Play Temecula, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/15/2026

 
60.0

 
55.6

 
47.4

 
0.02
%
Bear Creek Entertainment LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/12/2041

 
437.5

 
390.8

 
387.5

 
0.15
%
^2 Cool Beans LLC dba Menchies's Frozen Yogurt
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/11/2026

 
82.5

 
76.4

 
65.1

 
0.03
%

29
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Grayson O Company
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/10/2041

 
625.0

 
614.5

 
641.0

 
0.25
%
^Charal Investments LLC dba Orange Theory Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/10/2026

 
87.5

 
81.0

 
69.1

 
0.03
%
^PCNKC Inc dba Plato's Closet
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/10/2026

 
18.7

 
3.0

 
2.9

 
—
%
^Paul Belanger dba Paul Belanger Landscaping
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/9/2026

 
15.0

 
13.9

 
11.8

 
—
%
^Nicolette Reiser dba Comfort & Balance
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
75.0

 
73.6

 
75.2

 
0.03
%
^USA General Investment LLC dba Braniff Paint and Body Shop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2026

 
22.5

 
20.7

 
18.2

 
0.01
%
^The Hungry Rhino LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
76.2

 
74.9

 
74.9

 
0.03
%
^303 Tower Drive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
400.3

 
392.9

 
404.0

 
0.16
%
^Little Tree Huggers Child Care LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041

 
140.0

 
137.4

 
144.2

 
0.06
%
^676 Club LP dba The Green Door Tavern/The Drifter
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
670.0

 
657.7

 
682.3

 
0.27
%
^KJCKD Inc dba Camelot Print & Copy Centers/Copy A Second
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
587.0

 
576.2

 
579.4

 
0.23
%
^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
300.0

 
275.9

 
235.1

 
0.09
%
^MacIver Corporation dba Division Camera
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
1,250.0

 
1,149.6

 
1,086.0

 
0.42
%
^J And G Group Services LLC and United Vending of Florida Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026

 
31.5

 
29.6

 
26.5

 
0.01
%
^Intrepid Trinity LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
62.5

 
61.4

 
62.5

 
0.02
%
^Apple Tree NC Inc dba Williams Farm & Garden Center
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041

 
337.0

 
330.8

 
327.9

 
0.13
%
^Kidtastic LLC dba The Little Gym of Audubon
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
53.8

 
52.2

 
44.5

 
0.02
%
^GF Libations Inc dba Minuteman Press
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2041

 
40.5

 
38.8

 
34.6

 
0.01
%
^EPEC Juice LLC dba Jamba Juice
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
82.5

 
76.8

 
65.5

 
0.03
%
^Pinco Pizza LLC dba Jet's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
72.9

 
68.0

 
67.2

 
0.03
%

30
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Peckett's Inc
 
Crop Production
 
Term Loan
 
Prime plus 2.75%
 
7/27/2041

 
225.0

 
219.6

 
230.7

 
0.09
%
^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026

 
125.0

 
115.0

 
98.0

 
0.04
%
^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
7/26/2026

 
91.0

 
83.6

 
76.4

 
0.03
%
^Gino Italian American Deli and Meat Market Inc
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/25/2041

 
536.8

 
530.2

 
527.9

 
0.21
%
^My Sainath Inc dba Motel 6
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/22/2041

 
305.4

 
299.8

 
309.1

 
0.12
%
^Robert G Larson State Farm Insurance
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/22/2026

 
22.5

 
20.7

 
17.6

 
0.01
%
^J and D Resources LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2026

 
130.5

 
120.0

 
103.4

 
0.04
%
^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/18/2026

 
15.8

 
14.5

 
12.3

 
—
%
Franklin Firm LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/15/2041

 
173.3

 
170.6

 
171.7

 
0.07
%
^Billingsworks LLC dba Spoon Shine Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2026

 
9.7

 
8.9

 
9.0

 
—
%
^Be Beautiful LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/14/2041

 
66.5

 
65.3

 
67.3

 
0.03
%
^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026

 
46.2

 
42.5

 
36.2

 
0.01
%
^Jacob Rugs LLC dba Rugs Outlet
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026

 
65.6

 
60.4

 
61.0

 
0.02
%
^RM Hawkins LLC dba Pure Water Tech West
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026

 
50.0

 
46.0

 
44.2

 
0.02
%
^Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026

 
14.3

 
13.1

 
11.5

 
—
%
Nevey's LLC dba Stark Food III
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041

 
293.9

 
289.1

 
299.1

 
0.12
%
^Soregard Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041

 
278.8

 
273.2

 
262.0

 
0.10
%
^P L H Pharmaco Inc dba Farmacia San Jose
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
175.0

 
159.8

 
158.4

 
0.06
%
^Martin Inventory Management LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
105.8

 
96.6

 
97.6

 
0.04
%
^Desert Tacos LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
98.8

 
92.6

 
87.3

 
0.03
%

31
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^VMA Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026

 
22.5

 
20.5

 
17.5

 
0.01
%
^Corning Lumber Company Inc and Frank R Close and Son Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/30/2029

 
195.5

 
183.8

 
187.5

 
0.07
%
^Castone Creations Inc
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026

 
87.5

 
79.9

 
71.3

 
0.03
%
^WGI, LLC dba Williams Grant Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
131.2

 
128.6

 
129.5

 
0.05
%
^KWG Industries, LLC dba Peterson & Marsh Metal Industries
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
304.5

 
299.0

 
305.7

 
0.12
%
^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026

 
140.0

 
127.8

 
112.0

 
0.04
%
^Ninsa LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041

 
112.5

 
110.3

 
115.8

 
0.05
%
^E & P Holdings 1 LLC and Evans & Paul LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026

 
125.0

 
114.3

 
101.0

 
0.04
%
^MaidPro Marin dba MaidPro
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026

 
17.6

 
16.0

 
13.6

 
0.01
%
^All Printing Solutions, Inc. dba Pryntcomm
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
6/27/2041

 
545.6

 
535.4

 
517.5

 
0.20
%
^Edge Pest Control LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2026

 
750.0

 
684.9

 
583.2

 
0.23
%
^Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026

 
50.0

 
45.7

 
38.9

 
0.02
%
^El Basha Inc dba RPM West San Fernando Valley
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026

 
22.5

 
17.8

 
15.1

 
0.01
%
^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041

 
101.2

 
99.2

 
104.2

 
0.04
%
^Yellow Cab Company of Kissimmee Inc
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041

 
56.8

 
55.7

 
53.5

 
0.02
%
Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
494.8

 
488.4

 
478.5

 
0.19
%
^Visual Advantage LLC dba Signs Now Perryberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
91.2

 
89.4

 
89.2

 
0.03
%
^Long Island Comedy LLC dba Governors and New York Comedy, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041

 
187.5

 
183.8

 
185.5

 
0.07
%
^SNS of Central Alabama, LLC dba Steak N Shake dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/21/2026

 
57.5

 
52.5

 
47.9

 
0.02
%

32
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Evergreen Investment & Property Management LLC ,Universal Kidney Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/20/2041

 
1,250.0

 
1,229.1

 
1,269.8

 
0.50
%
^Italian Heritage Tile and Stone Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/20/2026

 
62.5

 
57.1

 
48.6

 
0.02
%
^Bagelicious, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026

 
54.5

 
49.8

 
42.7

 
0.02
%
^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026

 
225.0

 
206.1

 
208.3

 
0.08
%
^NKJ Lusby Donuts LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
22.5

 
20.5

 
17.5

 
0.01
%
^Winegirl Wines LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
11.3

 
10.3

 
10.4

 
—
%
^Blue Eagle Transport Inc, Greeneagle Transport Inc and Golden Eagle Transport
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026

 
583.0

 
524.9

 
447.0

 
0.17
%
^Jai-Alexia Consulting, Inc.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026

 
11.8

 
10.8

 
9.2

 
—
%
^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares
 
Social Assistance
 
Term Loan
 
Prime plus 2%
 
6/15/2041

 
515.2

 
503.9

 
487.6

 
0.19
%
^Strag Industries LLC dba Meineke Car Care Center 841
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026

 
15.0

 
13.7

 
12.7

 
—
%
^Luv 2 Play AZ LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026

 
62.5

 
57.1

 
56.0

 
0.02
%
^Refoleen Inc dba Spice and Tea Exchange
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026

 
85.0

 
79.1

 
67.3

 
0.03
%
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2026

 
84.0

 
76.7

 
65.3

 
0.03
%
^ScimTech Industries Inc dba Archer Aerospace
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026

 
12.0

 
11.0

 
9.3

 
—
%
^Larry H. Patterson and Rainbow Movers, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026

 
22.5

 
20.5

 
17.6

 
0.01
%
^Solvit Inc and Solvit North Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/3/2026

 
250.0

 
229.5

 
206.0

 
0.08
%
^AP5 LLC dba Krauser's Food Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/2/2041

 
242.5

 
237.7

 
240.5

 
0.09
%
^ATI Jet Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026

 
518.8

 
470.4

 
421.1

 
0.16
%
^Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026

 
50.0

 
45.3

 
45.8

 
0.02
%
Angelo Faia dba AVF Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/27/2041

 
100.0

 
97.4

 
97.8

 
0.04
%

33
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Premier Athletic Center of Ohio, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/27/2026

 
87.5

 
79.3

 
80.2

 
0.03
%
^Mersada Holdings LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026

 
337.5

 
306.0

 
309.3

 
0.12
%
^Jack Frost Firewood Inc. and David Dubinsky
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2041

 
206.2

 
201.8

 
201.3

 
0.08
%
^Southwest Division Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026

 
8.3

 
7.5

 
6.8

 
—
%
^PennyLion LLC dba Creamistry
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
81.0

 
74.4

 
65.3

 
0.03
%
^International Kitchen Supply LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
186.7

 
169.3

 
152.9

 
0.06
%
^Groth Lumber Co. Inc. dba True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026

 
22.5

 
20.4

 
20.6

 
0.01
%
^Island Life Graphics Inc dba FASTSIGNS #576
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026

 
22.5

 
20.4

 
17.7

 
0.01
%
^Powerspec Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026

 
87.5

 
79.4

 
67.6

 
0.03
%
^Horseshoe Barbecue, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029

 
15.0

 
12.8

 
13.1

 
0.01
%
^Elderfriend Inc dba Granny Nannies dba GN Live Scan
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
12.7

 
11.6

 
9.8

 
—
%
^National Air Cargo Holdings Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
1,250.0

 
1,133.4

 
1,123.0

 
0.44
%
^Pro Auto Repair LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
7.5

 
6.7

 
6.6

 
—
%
^HBA LLC dba Palmetto Twist-Vista
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026

 
22.5

 
17.7

 
15.5

 
0.01
%
^J&A Laundromat Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026

 
67.5

 
61.2

 
53.7

 
0.02
%
^Dedicated Incorporated
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2041

 
46.5

 
45.5

 
46.2

 
0.02
%
^J Harris Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026

 
60.0

 
39.2

 
35.7

 
0.01
%
^FJN Catering Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2041

 
262.5

 
257.3

 
268.3

 
0.10
%
^LED Lighting Enterprises LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026

 
22.5

 
20.4

 
17.9

 
0.01
%
^Studio Find It Georgia Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026

 
22.5

 
20.4

 
18.0

 
0.01
%

34
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Luv 2 Play OC Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/12/2026

 
62.5

 
60.8

 
51.8

 
0.02
%
^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/12/2041

 
132.5

 
129.7

 
129.9

 
0.05
%
^The Delon Group LLC dba I Love Juice Bar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/12/2026

 
55.0

 
19.8

 
16.9

 
0.01
%
^Sabir Inc. dba Bear Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2041

 
123.8

 
121.3

 
124.8

 
0.05
%
^Gator D'Lites LLC dba D'Lites Emporium
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/5/2026

 
22.5

 
20.4

 
17.4

 
0.01
%
^Warner Home Comfort, LLC dba Smith Piping
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
82.5

 
80.6

 
80.9

 
0.03
%
^Keller, Fishback & Jackson LLP
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
131.7

 
117.6

 
118.9

 
0.05
%
^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
22.5

 
20.3

 
17.2

 
0.01
%
^Euro Car Miami LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
62.5

 
56.3

 
56.9

 
0.02
%
^Hard Exercise Works Winter Park LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
40.8

 
36.7

 
31.2

 
0.01
%
^Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
7.5

 
6.8

 
5.8

 
—
%
^La Nopalera Mexicano 2, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
125.5

 
84.7

 
85.6

 
0.03
%
^May-Craft Fiberglass Products Inc
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
247.5

 
241.8

 
254.0

 
0.10
%
^Alpha Omega Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
175.7

 
171.9

 
180.6

 
0.07
%
^Empowerschool LLC and Empower Autism Academy, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041

 
151.9

 
148.4

 
155.9

 
0.06
%
^Scoler LLC dba Gold's Gym
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026

 
262.5

 
236.3

 
211.8

 
0.08
%
^Inner Beauty Salon and Suite LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
65.0

 
63.5

 
66.1

 
0.03
%
^Atlantic Restaurant Associates LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
262.5

 
256.5

 
264.4

 
0.10
%
^Costume World Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
1,250.0

 
1,225.3

 
1,287.0

 
0.50
%

35
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Pecos Inn LLC dba Econo Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041

 
677.5

 
659.9

 
679.8

 
0.27
%
^North American Manufacturing Company
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/28/2026

 
160.0

 
144.0

 
145.6

 
0.06
%
^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/28/2026

 
9.0

 
8.1

 
6.9

 
—
%
^Knowledge First Inc dba Magic Years of Learning
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026

 
80.0

 
72.1

 
68.7

 
0.03
%
^Green Country Filter Manufacturing LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026

 
84.2

 
76.6

 
67.1

 
0.03
%
^Accent Comfort Services, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/26/2026

 
90.0

 
81.0

 
69.0

 
0.03
%
^Homecare Casa Rhoda 123 Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
4/26/2041

 
675.0

 
657.8

 
645.8

 
0.25
%
^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041

 
250.0

 
244.3

 
235.7

 
0.09
%
^McIntosh Trail Management Services Organization Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041

 
425.0

 
415.3

 
436.2

 
0.17
%
^Jande Graphics LLC dba FastSigns #103201
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026

 
56.0

 
50.4

 
42.9

 
0.02
%
^AAA Mill Direct, Inc. dba Carpet Mill Outlets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026

 
7.9

 
7.1

 
7.2

 
—
%
^Miguel Fernando Borda, P.A. dba BGR Dental
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/15/2026

 
22.5

 
20.3

 
17.9

 
0.01
%
^LE & JS dba Laredo Mercado Y Carniceria
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/13/2026

 
19.9

 
18.5

 
15.8

 
0.01
%
^Sushiya Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/12/2026

 
87.5

 
78.8

 
70.1

 
0.03
%
^Sierra Foothill Cremation & Funeral Service, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/7/2026

 
53.0

 
47.8

 
40.7

 
0.02
%
^Waterfalls Quick Lube LLC and Veracruz Shabo LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041

 
271.3

 
268.2

 
274.0

 
0.11
%
^KNS Early Learning Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041

 
51.0

 
49.9

 
49.7

 
0.02
%
^Vehicle Safety Supply LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
22.5

 
20.1

 
18.4

 
0.01
%
^Men of Steel Enterprises LLC and Vogelbacher Properties LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
393.5

 
383.9

 
384.3

 
0.15
%
^Gill Express Inc and Blue Speed LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
518.0

 
505.4

 
524.2

 
0.21
%

36
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Dana A. Farley dba Independent Cabinets
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
67.5

 
65.9

 
70.2

 
0.03
%
^Christian Soderquist dba Soderquist Plumbing and Heating LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041

 
56.8

 
55.4

 
59.0

 
0.02
%
^Duke's Cleaners Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
47.0

 
42.0

 
40.7

 
0.02
%
^Cameo Carter, MD A Professional Corporation dba The Garden Pediatric Group
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
75.0

 
67.0

 
61.4

 
0.02
%
^Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant and Marvin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026

 
66.8

 
56.0

 
51.3

 
0.02
%
^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
22.5

 
20.4

 
20.8

 
0.01
%
^MTS Car Service LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
10.5

 
9.4

 
8.6

 
—
%
^NOSO Development, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
187.5

 
167.5

 
153.5

 
0.06
%
^Wyldewood Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
986.7

 
974.2

 
987.2

 
0.39
%
^Tom Sawyer Country Restaurant LLC and AM 3208 LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041

 
257.5

 
252.0

 
266.1

 
0.10
%
^Beale Street Blues Company-West Palm Beach, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026

 
93.7

 
83.8

 
78.2

 
0.03
%
^Barrocas Gym LLC dba Snap Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
22.5

 
17.8

 
17.2

 
0.01
%
^Lust for Life Footwear, LLC
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
375.0

 
335.1

 
307.0

 
0.12
%
^Vinmar Inc. dba Locanda Portofino
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026

 
81.3

 
72.6

 
66.5

 
0.03
%
^Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2%
 
3/29/2041

 
525.0

 
495.2

 
500.5

 
0.20
%
^Marathon Engineering Corporation
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2041

 
45.0

 
43.9

 
46.1

 
0.02
%
^ReNew Interior Surface Cleaning LLC dba Randy's Carpet Care and Upholstry
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026

 
12.4

 
11.1

 
11.2

 
—
%
^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026

 
50.0

 
44.7

 
42.5

 
0.02
%
^Revolution Physical Therapy LLC dba Apex Network Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
22.5

 
20.4

 
19.0

 
0.01
%
^RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
56.3

 
50.3

 
46.1

 
0.02
%

37
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026

 
125.0

 
111.7

 
106.7

 
0.04
%
^ActKnowledge, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
125.0

 
111.7

 
113.9

 
0.04
%
^International Construction Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
50.0

 
48.9

 
50.4

 
0.02
%
^Lowgap Grocery & Grill LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
167.5

 
163.4

 
174.2

 
0.07
%
^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026

 
50.0

 
44.8

 
45.0

 
0.02
%
^Acton Hardware LLC and Mark Allgood & Jamie Allgood
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041

 
498.6

 
486.8

 
496.1

 
0.19
%
^Magnation Corporation and Misha Family Trust
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/22/2041

 
101.3

 
99.1

 
105.6

 
0.04
%
^growth.period LLC and Potomac Recruiting LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
156.3

 
139.6

 
127.9

 
0.05
%
^Precious Care LLC and Precious Care Management LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
557.5

 
498.9

 
459.2

 
0.18
%
^Media Capital Partners, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026

 
22.5

 
20.5

 
18.8

 
0.01
%
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
80.7

 
78.8

 
83.5

 
0.03
%
^ERT Group Inc and Curt's Tools Inspection Inc
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041

 
1,250.0

 
1,229.9

 
1,272.0

 
0.50
%
^Kekoa Enterprises Inc dba Signarama Sandy
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
49.5

 
44.2

 
40.5

 
0.02
%
^Mariam Diner Inc dba Country Kitchen Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026

 
52.5

 
46.9

 
43.0

 
0.02
%
^Brian T Rice dba BD Logging
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
3/17/2026

 
15.8

 
14.1

 
13.5

 
0.01
%
^Auto and Property Insurance Solutions
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
16.4

 
14.5

 
13.2

 
0.01
%
^Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
21.8

 
19.4

 
19.2

 
0.01
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
55.0

 
49.2

 
50.2

 
0.02
%
^Evergreen Pallet LLC and Evergreen Recycle LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
1,039.2

 
931.4

 
886.2

 
0.35
%

38
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^K Soles Corp dba Max Collections
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026

 
22.5

 
20.1

 
18.4

 
0.01
%
^R & D Enterprises Inc dba My Pool Man
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2026

 
50.0

 
44.7

 
40.9

 
0.02
%
^Mustafa Inc and Raouf Properties LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/14/2041

 
75.0

 
73.2

 
77.4

 
0.03
%
^HEWZ, LLC dba Hard Exercise Works
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/14/2026

 
22.5

 
20.1

 
18.4

 
0.01
%
^Country Paint and Hardware Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
87.4

 
78.1

 
72.6

 
0.03
%
^Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
105.0

 
95.0

 
93.8

 
0.04
%
^Dupre Capital LLC dba Fastsigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
58.4

 
52.2

 
47.8

 
0.02
%
^Magill Truck Line LLC and Jeff J. Ralls
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/11/2029

 
210.8

 
195.3

 
187.6

 
0.07
%
^Accuair Control Systems LLC dba Accuair Suspension
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
150.0

 
134.0

 
124.7

 
0.05
%
^ABCs & 123s Infant and Child Care Center LP
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026

 
11.2

 
10.1

 
9.2

 
—
%
^State Painting & Decorating Co., Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/10/2026

 
103.8

 
92.7

 
84.9

 
0.03
%
^B.P.T.M. of NV LLC and Agentis Bros., LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/9/2041

 
525.0

 
512.2

 
532.4

 
0.21
%
^Step Up Academy of the Arts LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
8.0

 
7.2

 
6.6

 
—
%
^A & A Auto Care LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
12.1

 
10.9

 
10.9

 
—
%
^Faith Summit Supply Inc dba Summit Supply and Summit True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026

 
22.5

 
20.1

 
19.3

 
0.01
%
^Swerve Salon LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2026

 
79.0

 
70.6

 
64.7

 
0.03
%
^J & W Hardwood Flooring Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/7/2026

 
7.5

 
6.7

 
6.1

 
—
%
^Labmates LLC and POV Holdings LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/4/2041

 
109.3

 
106.6

 
113.6

 
0.04
%
^Hueston and Company CPA LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/4/2026

 
8.3

 
7.3

 
6.8

 
—
%
^Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/3/2026

 
50.0

 
45.0

 
45.3

 
0.02
%

39
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Miles of Smiles Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/2/2026

 
93.5

 
85.1

 
79.1

 
0.03
%
^Living Essentials HVAC Corp
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
15.0

 
13.3

 
12.3

 
—
%
^Consulting Solutions, Inc. and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
11.2

 
10.0

 
10.1

 
—
%
^Powerpits CS1, LLC dba Pita Pit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
18.8

 
16.6

 
15.8

 
0.01
%
^Drug Detection Laboratories, Inc. and Minh Tran
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
19.8

 
17.5

 
16.3

 
0.01
%
^Doxa Deo Inc dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026

 
105.0

 
97.3

 
91.2

 
0.04
%
^The River Beas, LLC dba Subway and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041

 
135.9

 
132.7

 
140.4

 
0.05
%
^Blackstones Hairdressing LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
52.0

 
46.5

 
42.9

 
0.02
%
^Aaradhya LLC dba Market Square Laundry
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026

 
80.0

 
70.9

 
65.0

 
0.03
%
^R-No-Landscaping LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026

 
8.3

 
7.3

 
6.8

 
—
%
^BER Enterprise 332 Inc dba Edible Arrangements
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026

 
22.5

 
20.0

 
18.4

 
0.01
%
^R & K Contracting Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/18/2026

 
15.8

 
14.1

 
14.1

 
0.01
%
^Pacific Coast Medical Group LLC dba Celebrity Laser Spa and Advanced
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/17/2026

 
245.0

 
217.3

 
221.6

 
0.09
%
^B for Blonde, LLC dba Blo Blow Dry Bar
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026

 
62.0

 
55.7

 
51.1

 
0.02
%
^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2029

 
310.3

 
286.3

 
277.9

 
0.11
%
^Ei3 Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026

 
326.9

 
289.9

 
295.7

 
0.12
%
^Jersey Shore Marina & Boat Sales, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/12/2041

 
625.0

 
609.7

 
650.0

 
0.25
%
^Base USA, Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
2/2/2026

 
50.0

 
44.4

 
45.3

 
0.02
%
^Zouk Ltd dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026

 
22.5

 
19.8

 
20.2

 
0.01
%

40
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Tammy Lavertue
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
11.3

 
9.9

 
9.9

 
—
%
^SuzyQue's LLC dba SuzyQue's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
22.5

 
19.8

 
20.2

 
0.01
%
^Wildflour Bakery & Cafe LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026

 
62.5

 
55.0

 
55.5

 
0.02
%
^New Image Building Services, Inc. dba The Maids serving Oakland
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026

 
83.1

 
73.2

 
69.3

 
0.03
%
^Oak Tree Storage LLC
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026

 
78.8

 
69.3

 
64.3

 
0.03
%
^Gendron Funeral and Cremation Services, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2041

 
112.5

 
108.0

 
115.1

 
0.05
%
^Dolarian Realty LLC and OV's Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2041

 
67.8

 
66.0

 
70.4

 
0.03
%
#CIRCULAR!
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
112.5

 
98.3

 
92.4

 
0.04
%
^MCF Forte LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025

 
18.8

 
16.4

 
15.1

 
0.01
%
^Panditos LLC dba White Lotus Home
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
15.9

 
13.9

 
12.7

 
—
%
^Bright Dialysis LLC and Ft Pierce Kidney Care LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025

 
1,250.0

 
1,092.1

 
1,002.2

 
0.39
%
^V2 Tango LLC dba Palette 22
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025

 
250.0

 
218.4

 
204.3

 
0.08
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
102.5

 
99.5

 
103.9

 
0.04
%
^Optima Health Care Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025

 
62.5

 
54.6

 
55.7

 
0.02
%
^800 on the Trax LLC and Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040

 
240.0

 
234.1

 
243.4

 
0.10
%
^Joyce Outdoor Advertising Chicago LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040

 
300.0

 
293.1

 
303.6

 
0.12
%
^The LAX Shop Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2025

 
125.0

 
85.4

 
87.1

 
0.03
%
^Premier Athletic Center of Ohio Inc. and Gates Investments
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2028

 
882.0

 
804.8

 
829.2

 
0.32
%
#CIRCULAR!
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025

 
18.0

 
15.7

 
14.9

 
0.01
%

41
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
#CIRCULAR!
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
1,025.0

 
994.8

 
1,060.0

 
0.41
%
#CIRCULAR!
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
175.0

 
152.9

 
140.0

 
0.05
%
#CIRCULAR!
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
73.0

 
65.4

 
61.1

 
0.02
%
#CIRCULAR!
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
36.0

 
30.4

 
28.2

 
0.01
%
^Accent Tag and Label Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
665.8

 
644.4

 
671.7

 
0.26
%
^Labmates LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040

 
162.5

 
157.7

 
168.0

 
0.07
%
^Abbondanza Market LLC dba Hampton Falls Village Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025

 
73.7

 
58.8

 
55.0

 
0.02
%
^Mustafa Inc dba Adiba Grocery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
103.8

 
91.2

 
92.9

 
0.04
%
^Learning Skills LLC and Christopher Shrope
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
10.8

 
9.4

 
8.6

 
—
%
^New York Home Health Care Equipment, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
875.0

 
767.0

 
775.6

 
0.30
%
^Moments to Remember USA LLC dba Retain Loyalty
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
75.0

 
65.6

 
64.2

 
0.03
%
^Swalm Sreet LLC and New York Home Health Care Equipment LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2040

 
375.0

 
365.3

 
385.8

 
0.15
%
^Abitino's JFK LLC dba Abitino's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2022

 
125.0

 
102.0

 
96.2

 
0.04
%
^JAG Unit 1, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025

 
250.0

 
218.4

 
200.0

 
0.08
%
^SDA Holdings LLC and Les Cheveux Salon Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2040

 
428.8

 
418.2

 
431.3

 
0.17
%
^Evans & Paul LLC and E&P Holdings I LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2025

 
125.0

 
109.2

 
102.3

 
0.04
%
^Basista Family Limited Partnership and UPE, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2040

 
342.5

 
332.4

 
345.5

 
0.14
%
^DC Enterprises Ltd. dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2025

 
22.5

 
19.7

 
19.5

 
0.01
%
^Tri-State Remodeling & Investments, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
15.9

 
13.9

 
13.9

 
0.01
%
^AGR Foodmart Inc dba Nashua Road Mobil
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025

 
22.5

 
19.7

 
19.4

 
0.01
%

42
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Alexandra Afentoulides dba Vi's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2040

 
46.3

 
44.9

 
47.8

 
0.02
%
#CIRCULAR!
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2025

 
7.5

 
6.6

 
6.7

 
—
%
#CIRCULAR!
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/9/2025

 
100.0

 
87.4

 
82.0

 
0.03
%
#CIRCULAR!
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/8/2025

 
108.7

 
95.0

 
89.4

 
0.03
%
#CIRCULAR!
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2025

 
56.3

 
30.9

 
28.3

 
0.01
%
^Food & Fuel Company LLC dba Lowery Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
122.5

 
118.9

 
126.7

 
0.05
%
^Blue Ox Trucking Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2025

 
12.3

 
4.7

 
4.7

 
—
%
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
502.5

 
488.4

 
512.4

 
0.20
%
#CIRCULAR!
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040

 
293.0

 
284.4

 
298.8

 
0.12
%
^Tariq, LLC dba 76 Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/2/2040

 
375.0

 
363.9

 
382.2

 
0.15
%
^401 JJS, Corp and G. Randazzo's Trattoria Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2040

 
52.7

 
51.5

 
53.5

 
0.02
%
^Delta Aggregate, LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
100.0

 
90.8

 
92.6

 
0.04
%
^Block and Grinder LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
200.0

 
55.3

 
56.4

 
0.02
%
^Hurshell Leon Dutton dba High Jump Party Rentals
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
17.6

 
15.2

 
15.4

 
0.01
%
^Japp Business Inc dba Pick and Eat and Japp Drink Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
125.0

 
108.9

 
103.3

 
0.04
%
^Smokeyard Inc dba Smokeyard BBQ and Chop Shop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025

 
125.0

 
108.4

 
100.7

 
0.04
%
^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
22.5

 
19.5

 
17.9

 
0.01
%
^DWeb Studio, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
11.3

 
9.8

 
8.9

 
—
%
#CIRCULAR!
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025

 
100.0

 
62.7

 
57.4

 
0.02
%
^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/23/2040

 
750.0

 
738.3

 
782.8

 
0.31
%

43
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Play and Learn Child Care and School Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/23/2025

 
11.1

 
9.6

 
9.8

 
—
%
^Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025

 
89.0

 
78.2

 
72.6

 
0.03
%
^Haven Hospitality Group Inc. dba Haven Gastropub
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025

 
132.5

 
114.9

 
106.5

 
0.04
%
^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2040

 
244.4

 
237.1

 
238.0

 
0.09
%
^S.B.B. Enterprises Inc dba Williamston Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/19/2040

 
108.8

 
105.1

 
105.8

 
0.04
%
^Key Pix Productions Inc. dba Air Bud Entertainment
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2040

 
839.8

 
813.6

 
867.0

 
0.34
%
^RDT Enterprises, L.L.C.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/12/2025

 
22.5

 
19.5

 
19.2

 
0.01
%
^E.S.F.P. LLC dba Volusia Van and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/11/2025

 
91.3

 
77.2

 
71.8

 
0.03
%
^Green Life Lawnscapes LLC dba Green Life Lawn Care
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/6/2025

 
127.3

 
110.3

 
111.1

 
0.04
%
^Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025

 
306.2

 
265.5

 
266.6

 
0.10
%
^Bisson Transportation Inc dba I & R Associates and Document Secutiry
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2025

 
22.5

 
19.3

 
19.0

 
0.01
%
^L.M. Jury Enterprises, Inc dba Midwest Monograms
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
77.0

 
66.2

 
61.5

 
0.02
%
^Top Cat Ready Mix, LLC, Ples Investments LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025

 
711.3

 
611.6

 
574.7

 
0.22
%
^Financial Network Recovery
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
40.0

 
34.4

 
31.5

 
0.01
%
^Windsor Direct Distribution LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025

 
14.2

 
12.3

 
11.2

 
—
%
^Tannehill Enterprises Inc dba Hobbytown USA Folsom
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025

 
87.4

 
75.1

 
68.8

 
0.03
%
^ADMO Inc dba Mid States Equipment
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2025

 
22.5

 
19.3

 
18.0

 
0.01
%
^Recycling Consultants, Inc. and Prairie State Salvage and Recycling Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
767.5

 
679.9

 
651.9

 
0.26
%
^Bat Bridge Investments Inc dba Kalologie 360 Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
85.5

 
74.4

 
68.1

 
0.03
%
^Binky's Vapes LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
22.5

 
19.2

 
17.6

 
0.01
%

44
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^SCJEN Management Inc dba Bowl of Heaven
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
71.2

 
61.4

 
56.2

 
0.02
%
^Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
125.0

 
106.6

 
97.5

 
0.04
%
^Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/30/2028

 
66.5

 
59.7

 
60.1

 
0.02
%
^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2040

 
143.0

 
138.1

 
146.9

 
0.06
%
^R.H. Hummer Jr., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025

 
375.0

 
335.1

 
332.6

 
0.13
%
^Greensward of Marco Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
87.5

 
84.5

 
87.5

 
0.03
%
^RIM Investments LLC and RIM Architects LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040

 
399.0

 
385.3

 
397.8

 
0.16
%
^The Grasso Companies LLC and Grasso Pavement Maintenance LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2025

 
518.7

 
438.2

 
446.2

 
0.17
%
^South Towne Dental Center, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
50.0

 
42.7

 
43.5

 
0.02
%
^Sandlot Ventures LLC and Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
442.5

 
430.0

 
439.6

 
0.17
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
962.5

 
929.5

 
949.4

 
0.37
%
^Prestigious LifeCare for Seniors LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025

 
9.8

 
8.4

 
8.1

 
—
%
^Daniel W. Stark dba Mountain Valley Lodge and RV Park
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040

 
13.5

 
13.0

 
13.9

 
0.01
%
^J.R. Wheeler Corporation dba Structurz Exhibits and Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2025

 
21.0

 
18.0

 
18.3

 
0.01
%
^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
625.0

 
603.5

 
628.6

 
0.25
%
^Hagerstown Muffler, Inc. and JMS Muffler, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040

 
327.5

 
316.3

 
336.8

 
0.13
%
^Rutledge Enterprises Inc dba BLC Property Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/23/2040

 
62.5

 
59.9

 
62.4

 
0.02
%
^Finish Strong Inc dba FASTSIGNS St Peters
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
50.0

 
42.7

 
39.0

 
0.02
%
^J3K LLC dba Ronan True Value Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
152.5

 
130.1

 
119.0

 
0.05
%
^Nova Solutions Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
320.0

 
309.0

 
322.1

 
0.13
%

45
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Pine Belt Wood Products LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040

 
163.7

 
158.1

 
156.6

 
0.06
%
^IIoka Inc dba New Cloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
665.0

 
570.1

 
521.4

 
0.20
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025

 
50.0

 
42.7

 
40.5

 
0.02
%
^MiJoy Inc dba Imo's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
8.2

 
7.0

 
6.4

 
—
%
^Vanderhoof LLC dba Soxfords
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025

 
15.9

 
13.6

 
12.4

 
—
%
^Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/17/2025

 
125.0

 
106.6

 
97.5

 
0.04
%
^Import Car Connection Inc dba Car Connection
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/16/2040

 
407.5

 
393.5

 
416.2

 
0.16
%
^FirstVitals Health and Wellness Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/15/2025

 
150.0

 
128.0

 
117.0

 
0.05
%
^Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025

 
62.5

 
53.7

 
54.5

 
0.02
%
^Veliu LLC dba FASTSIGNS #15901
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/10/2025

 
50.0

 
43.2

 
40.3

 
0.02
%
^B and A Friction Materials Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/9/2025

 
102.5

 
85.2

 
77.9

 
0.03
%
^Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/8/2040

 
140.0

 
135.2

 
144.0

 
0.06
%
^AIG Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
363.8

 
351.3

 
356.0

 
0.14
%
^Empower Autism Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040

 
685.0

 
661.5

 
704.4

 
0.28
%
^Higher Grounds Community Coffeehouse, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025

 
8.3

 
7.0

 
6.6

 
—
%
^Delray Scrap Recycling LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
22.5

 
18.8

 
17.2

 
0.01
%
^The Camera House Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025

 
1,250.0

 
1,057.8

 
1,022.6

 
0.40
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
81.2

 
68.8

 
66.1

 
0.03
%
^Elite Institute LLC dba Huntington Learning Center
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
15.0

 
12.9

 
11.8

 
—
%
^J and K Fitness L.L.C. dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041

 
93.7

 
91.5

 
96.2

 
0.04
%

46
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Zephyr Seven Series LLC dba 18/8 Fine Men's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025

 
81.3

 
71.3

 
66.2

 
0.03
%
^B and J Catering Inc dba Culinary Solutions
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/27/2040

 
547.5

 
532.9

 
546.2

 
0.21
%
^3000 CSI Property LLC and Consulting Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040

 
137.5

 
132.6

 
140.0

 
0.05
%
^God Be Glorified Inc dba GBG Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025

 
53.0

 
44.9

 
41.0

 
0.02
%
^GDP Gourmet LLC dba Joe and John's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2040

 
145.0

 
139.8

 
145.0

 
0.06
%
^Gold Jet Corp.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025

 
68.3

 
61.0

 
58.6

 
0.02
%
^SKJ Inc dba Subway
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/13/2025

 
84.8

 
71.7

 
66.2

 
0.03
%
^LP Industries Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
125.0

 
105.2

 
103.1

 
0.04
%
^Pauley Tree and Lawn Care Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2025

 
65.8

 
56.1

 
53.4

 
0.02
%
^Beale Street Blues Company-West Palm Beach LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
66.3

 
55.6

 
52.2

 
0.02
%
^Forever & Always of Naples Inc dba Island Animal Hospital
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025

 
107.5

 
82.9

 
80.2

 
0.03
%
^Smart Artists Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025

 
22.5

 
18.9

 
17.3

 
0.01
%
^Pooh's Corner Realty LLC and Pooh's Corner Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/23/2040

 
103.8

 
100.3

 
106.4

 
0.04
%
^Free Ion Advisors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2025

 
64.3

 
53.9

 
49.3

 
0.02
%
^Murrayville Donuts, Inc dba Dunkin' Donuts
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040

 
344.5

 
335.4

 
343.5

 
0.13
%
^Union 2 LLC dba The Standard
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025

 
91.5

 
82.9

 
80.2

 
0.03
%
^BJ's Tavern LLC and BJ's Cabana Bar Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
212.5

 
204.2

 
212.6

 
0.08
%
^Jonathan E Nichols and Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
75.0

 
62.4

 
61.9

 
0.02
%
^Thrifty Market, Inc. dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030

 
262.5

 
237.8

 
228.2

 
0.09
%
^Danny V, LLC dba Hugo's Taproom
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
54.0

 
45.7

 
46.1

 
0.02
%

47
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
281.7

 
234.5

 
221.3

 
0.09
%
^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
337.5

 
280.9

 
260.0

 
0.10
%
^Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2030

 
291.9

 
264.9

 
257.8

 
0.10
%
^Myclean Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
15.9

 
13.2

 
12.1

 
—
%
^E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
22.5

 
18.7

 
17.2

 
0.01
%
^SofRep, Inc dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
66.3

 
55.1

 
50.4

 
0.02
%
^TJU-DGT Inc dba The Lorenz Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029

 
20.6

 
18.5

 
19.1

 
0.01
%
^Jihan Inc dba ARCO AM/PM and Diana Inc dba Diana's Recycling
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
380.0

 
365.1

 
378.2

 
0.15
%
^CEM Autobody LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
135.5

 
130.2

 
133.9

 
0.05
%
^Wolf Enviro Interests, LLC and Enviromax Services Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040

 
246.5

 
237.2

 
237.4

 
0.09
%
^Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.465%
 
6/25/2040

 
1,207.5

 
1,172.3

 
1,204.2

 
0.47
%
^Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
22.5

 
18.7

 
17.9

 
0.01
%
^Amboy Group, LLC dba Tommy's Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
454.0

 
387.4

 
394.2

 
0.15
%
^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/23/2040

 
551.7

 
530.1

 
564.2

 
0.22
%
^RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
22.5

 
18.6

 
17.0

 
0.01
%
^Real Help LLC dba Real Help Decorative Concrete
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025

 
53.1

 
44.2

 
44.7

 
0.02
%
^PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
14.9

 
12.4

 
11.3

 
—
%
^KRN Logistics, LLC and Newsome Trucking, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
543.5

 
455.7

 
438.7

 
0.17
%
^Inverted Healthcare Staffing of Florida LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
61.3

 
51.0

 
46.6

 
0.02
%
^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/17/2025

 
437.5

 
378.7

 
383.3

 
0.15
%
^AM PM Properties, LLC and AM PM Willington, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040

 
87.1

 
83.4

 
88.1

 
0.03
%

48
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
130.5

 
108.6

 
99.2

 
0.04
%
^Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
338.8

 
133.3

 
130.4

 
0.05
%
^Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025

 
125.0

 
99.0

 
90.5

 
0.04
%
^Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
290.2

 
278.9

 
296.8

 
0.12
%
^Eldredge Tavern LLC dba Gonyea's Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040

 
56.3

 
54.0

 
57.5

 
0.02
%
^Nicor LLC dba Fibrenew Sacramento
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/5/2022

 
13.8

 
10.1

 
9.2

 
—
%
^Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
16.0

 
13.1

 
11.9

 
—
%
^ViAr Visual Communications, Inc. dba Fastsigns 281701
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
62.0

 
51.6

 
48.0

 
0.02
%
^Video Vault & Tanning LLC and Mosaic Salon LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/4/2040

 
90.5

 
87.1

 
92.7

 
0.04
%
^Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025

 
125.0

 
104.0

 
95.7

 
0.04
%
^XCESSIVE THROTTLE, INC dba Jake's Roadhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025

 
8.2

 
6.8

 
6.2

 
—
%
^God is Good LLC dba BurgerFi
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
67.2

 
11.7

 
11.9

 
—
%
^Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
9.0

 
7.4

 
7.0

 
—
%
^Pen Tex Inc dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
22.0

 
18.2

 
16.6

 
0.01
%
^Douglas Posey and Sally Watkinson dba Audrey's Farmhouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2040

 
174.1

 
167.0

 
175.2

 
0.07
%
^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/15/2025

 
717.2

 
594.5

 
553.0

 
0.22
%
^15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040

 
257.1

 
246.6

 
250.3

 
0.10
%
^Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
65.0

 
53.6

 
49.3

 
0.02
%
^George S Cochran DDS Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025

 
130.0

 
107.9

 
98.8

 
0.04
%
^South Park Properties LLC and Midlothian Hardware LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040

 
170.5

 
162.4

 
172.9

 
0.07
%

49
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Matthew Taylor and Landon Farm LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040

 
100.0

 
96.6

 
95.1

 
0.04
%
^Cares Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/1/2040

 
81.9

 
77.7

 
82.7

 
0.03
%
^Orchid Enterprises Inc dba Assisting Hands of Sussex County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2025

 
15.0

 
12.3

 
11.2

 
—
%
^Ragazza Restaurant Group, Inc. dba Bambolina
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.5

 
18.2

 
17.2

 
0.01
%
^Diamond Solutions LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.5

 
17.6

 
16.0

 
0.01
%
^Giacchino Maritime Consultants Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/17/2025

 
22.5

 
18.4

 
16.8

 
0.01
%
^Sound Coaching Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
4/14/2025

 
44.4

 
36.3

 
33.2

 
0.01
%
^Faramarz Nikourazm dba Car Clinic Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/3/2040

 
73.8

 
70.4

 
72.9

 
0.03
%
^Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
758.3

 
707.0

 
751.3

 
0.29
%
^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
807.8

 
130.3

 
134.1

 
0.05
%
^HAVANA CENTRAL NJ1, LLC dba Havana Central
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
250.0

 
218.9

 
225.1

 
0.09
%
^Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
428.7

 
409.8

 
434.7

 
0.17
%
^Copper Beech Financial Group LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
125.0

 
101.4

 
102.4

 
0.04
%
^Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
90.0

 
79.2

 
81.5

 
0.03
%
^Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
301.8

 
288.4

 
312.6

 
0.12
%
^Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
106.5

 
86.4

 
87.6

 
0.03
%
^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
1,238.3

 
1,004.5

 
993.7

 
0.39
%
^Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
1,040.2

 
990.4

 
1,050.6

 
0.41
%
^Geo Los Angeles LLC dba Geo Film Group
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2025

 
130.0

 
105.5

 
106.8

 
0.04
%
^Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2040

 
54.0

 
51.6

 
55.8

 
0.02
%

50
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025

 
22.5

 
18.3

 
18.1

 
0.01
%
^Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/25/2040

 
810.0

 
774.2

 
838.2

 
0.33
%
^Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2025

 
12.0

 
9.7

 
9.6

 
—
%
^Shelton Incorporated dba Mrs. Winners
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
112.5

 
107.5

 
116.5

 
0.05
%
^Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
42.9

 
41.1

 
44.0

 
0.02
%
^R & R Security and Investigations Inc dba Pardners Lake Buchanan
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2040

 
85.4

 
81.7

 
88.5

 
0.03
%
^MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040

 
160.7

 
153.6

 
164.3

 
0.06
%
^Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
91.2

 
87.2

 
93.6

 
0.04
%
^BND Sebastian Limited Liability Company and Sebastian Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
172.5

 
164.9

 
177.7

 
0.07
%
^Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040

 
191.8

 
183.3

 
196.0

 
0.08
%
^Luigi's on Main LLC and Luigi's Main Street Pizza Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/4/2025

 
11.3

 
9.1

 
9.4

 
—
%
^Baystate Firearms and Training, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
63.4

 
50.8

 
50.4

 
0.02
%
^Kingseal LLC dba Desoto Health and Rehab Center
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
2/26/2040

 
1,250.0

 
1,192.7

 
1,292.8

 
0.51
%
^Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025

 
66.2

 
53.1

 
54.7

 
0.02
%
^Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025

 
12.4

 
10.0

 
9.9

 
—
%
^Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/19/2040

 
61.7

 
59.0

 
63.0

 
0.02
%
^Triangle Trash LLC dba Bin There Dump That
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025

 
74.4

 
59.7

 
60.2

 
0.02
%
^Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/31/2018

 
171.5

 
163.8

 
162.1

 
0.06
%
^740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040

 
492.5

 
469.9

 
509.4

 
0.20
%

51
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040

 
66.2

 
63.3

 
67.9

 
0.03
%
^DuCharme Realty LLC and DuCharme Enterprises LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040

 
225.1

 
214.8

 
228.8

 
0.09
%
^Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
80.0

 
64.3

 
64.0

 
0.03
%
^Limameno LLC dba Sal's Italian Ristorante
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
83.3

 
66.3

 
66.1

 
0.03
%
^Palmabak Inc dba Mami Nora's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025

 
21.5

 
13.3

 
13.7

 
0.01
%
^Jung Design Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/20/2022

 
8.4

 
5.7

 
5.6

 
—
%
^Grand Blanc Lanes, Inc. and H, H and H, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039

 
133.0

 
126.9

 
137.1

 
0.05
%
^Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
106.3

 
86.2

 
88.6

 
0.03
%
^Evans and Paul LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
223.7

 
176.7

 
180.8

 
0.07
%
^FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2039

 
245.5

 
234.8

 
249.5

 
0.10
%
^First Prevention and Dialysis Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024

 
273.3

 
228.1

 
232.2

 
0.09
%
^Bowlerama Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039

 
1,202.5

 
1,145.0

 
1,240.3

 
0.49
%
^The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
530.3

 
504.1

 
534.8

 
0.21
%
^401 JJS Corporation and G. Randazzo Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
473.5

 
454.9

 
490.3

 
0.19
%
^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
500.0

 
475.4

 
515.0

 
0.20
%
^Atlantis of Daytona LLC and Ocean Club Sportswear Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039

 
240.0

 
197.2

 
213.6

 
0.08
%
^Beale Street Blues Company-West Palm Beach, LLC dba Lafayette Music Hall
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024

 
187.5

 
148.1

 
148.3

 
0.06
%
^MM and M Management Inc dba Pizza Artista
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025

 
46.3

 
37.6

 
37.4

 
0.01
%
^The Jewelers Inc. dba The Jewelers of Las Vegas
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024

 
1,250.0

 
987.5

 
978.5

 
0.38
%

52
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^B.S. Ventures LLC dba Dink's Market
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039

 
53.8

 
51.1

 
55.4

 
0.02
%
^B & W Towing, LLC and Boychucks Fuel LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039

 
164.5

 
156.7

 
167.2

 
0.07
%
^All American Games, LLC and Sportslink - The Game, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/10/2024

 
400.0

 
315.8

 
317.0

 
0.12
%
^Kemmer LLC and Apples Tree Top Liquors LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039

 
138.4

 
131.6

 
139.9

 
0.05
%
^The Red Pill Management, Inc. dba UFC Gym Matthews
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024

 
54.3

 
43.2

 
43.2

 
0.02
%
^Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039

 
148.7

 
141.7

 
151.5

 
0.06
%
^DeRidder Chiropractic LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
13.2

 
10.3

 
10.6

 
—
%
^Modern Manhattan LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
220.0

 
172.1

 
170.8

 
0.07
%
^Legacy Estate Planning Inc dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
42.0

 
32.9

 
32.5

 
0.01
%
^J&D Resources, LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024

 
767.9

 
594.9

 
591.1

 
0.23
%
^DC Real LLC and DC Enterprises LTD dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/20/2039

 
119.4

 
113.8

 
122.6

 
0.05
%
^MLM Enterprises LLC and Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024

 
70.5

 
55.2

 
56.0

 
0.02
%
^JEJE Realty LLC and La Familia Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2039

 
205.8

 
172.3

 
185.0

 
0.07
%
^Joey O's LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024

 
13.1

 
0.7

 
0.7

 
—
%
^Heartland American Properties LLC and Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2039

 
479.0

 
453.8

 
488.4

 
0.19
%
^Golden Transaction Corporation dba Bleh Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/30/2039

 
156.7

 
148.4

 
160.2

 
0.06
%
^Seelan Inc dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039

 
90.5

 
85.7

 
91.7

 
0.04
%
^Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039

 
89.0

 
84.5

 
89.8

 
0.04
%
^One Hour Jewelry Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024

 
20.6

 
15.9

 
15.7

 
0.01
%
^DNT Storage and Properties LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
101.7

 
96.4

 
104.1

 
0.04
%

53
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024

 
187.5

 
145.3

 
145.4

 
0.06
%
^Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039

 
1,250.0

 
1,198.8

 
1,298.6

 
0.51
%
^Smith Spinal Care Center P.C. and James C. Smith
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2039

 
60.0

 
56.8

 
61.1

 
0.02
%
^Doctors Express Management of Central Texas LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024

 
105.0

 
72.0

 
73.6

 
0.03
%
^Michael Rey Jr. and Lynn J. Williams and GIG Petcare
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/3/2039

 
126.9

 
117.7

 
126.9

 
0.05
%
^Sumad LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024

 
92.5

 
41.2

 
42.3

 
0.02
%
^Roccos LLC and Sullo Pantalone Inc dba Rocco's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
255.8

 
241.8

 
258.0

 
0.10
%
^Keller Holdings LLC and David H Keller III and Carie C Keller
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039

 
100.0

 
94.6

 
102.3

 
0.04
%
^Orange County Insurance Brokerage Inc dba Beaty Insurance Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
325.1

 
308.9

 
334.4

 
0.13
%
^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039

 
513.3

 
489.6

 
530.0

 
0.21
%
^Keys Phase One LLC dba The Grand Guesthouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
736.2

 
696.2

 
749.8

 
0.29
%
^Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039

 
57.5

 
54.4

 
58.9

 
0.02
%
^Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/26/2024

 
22.5

 
17.3

 
17.2

 
0.01
%
^6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
452.5

 
432.6

 
457.1

 
0.18
%
^North Columbia LLC and Loop Liquor and Convenience Store LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039

 
159.2

 
150.7

 
162.2

 
0.06
%
^R A Johnson Inc dba Rick Johnson Auto and Tire
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/23/2039

 
301.2

 
284.9

 
308.4

 
0.12
%
^Andrene's LLC dba Andrene's Caribbean Soul Food Carry Out
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/23/2024

 
37.7

 
25.6

 
25.3

 
0.01
%
^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2039

 
145.5

 
137.8

 
149.2

 
0.06
%
^Modern Leather Goods Repair Shop Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024

 
58.8

 
44.6

 
44.1

 
0.02
%
^RDT Enterprises LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027

 
162.7

 
136.9

 
141.8

 
0.06
%
^Tavern Properties LLC and Wildwood Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039

 
425.0

 
404.5

 
435.0

 
0.17
%

54
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024

 
272.5

 
211.9

 
212.5

 
0.08
%
^KW Zion, LLC and Key West Gallery Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/12/2039

 
1,250.0

 
1,182.1

 
1,272.7

 
0.50
%
^Indy East Smiles Youth Dentistry LLC dba Prime Smile East
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2024

 
630.2

 
484.0

 
478.5

 
0.19
%
^B&P Diners LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024

 
80.0

 
61.4

 
60.6

 
0.02
%
^Feel The World Inc dba Xero Shoes and Invisible Shoes
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/5/2024

 
51.9

 
39.9

 
39.6

 
0.02
%
^Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
8/28/2039

 
911.2

 
859.0

 
929.9

 
0.36
%
^Lamjam LLC (EPC) Goldsmith Lambros Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
133.8

 
102.7

 
105.5

 
0.04
%
^Orange County Cleaning Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024

 
41.2

 
24.3

 
24.0

 
0.01
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024

 
121.0

 
92.0

 
92.7

 
0.04
%
^Atlas Auto Body Inc dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039

 
51.6

 
48.7

 
52.0

 
0.02
%
^Katie Senior Care LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024

 
124.3

 
94.5

 
93.3

 
0.04
%
^Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
145.2

 
137.6

 
149.0

 
0.06
%
^S&P Holdings of Daytona LLC S&P Corporation of Daytona Beach
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039

 
433.5

 
388.3

 
420.3

 
0.16
%
^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/8/2039

 
188.4

 
177.0

 
191.6

 
0.07
%
^Almost Home Property LLC and Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039

 
715.8

 
677.8

 
731.8

 
0.29
%
^AGV Enterprises LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
54.8

 
41.3

 
41.0

 
0.02
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024

 
379.1

 
296.7

 
298.8

 
0.12
%
^575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2039

 
22.5

 
20.6

 
22.3

 
0.01
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/24/2039

 
150.0

 
141.3

 
152.9

 
0.06
%
^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039

 
100.0

 
96.3

 
103.4

 
0.04
%
^AMG Holding, LLC and Stetson Automotive, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
208.0

 
195.6

 
211.6

 
0.08
%

55
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Highway Striping Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
53.1

 
39.6

 
39.6

 
0.02
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
100.0

 
74.5

 
76.5

 
0.03
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
629.8

 
594.0

 
628.4

 
0.25
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039

 
875.3

 
824.3

 
891.5

 
0.35
%
^FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2039

 
321.8

 
302.7

 
324.9

 
0.13
%
^Zinger Hardware and General Merchant Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/26/2024

 
110.5

 
82.4

 
83.5

 
0.03
%
^JPM Investments LLC and Carolina Family Foot Care P.A.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2039

 
136.1

 
132.6

 
142.6

 
0.06
%
^Nikobella Properties LLC and JPO Inc dba Village Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2039

 
476.3

 
449.3

 
482.8

 
0.19
%
^Big Sky Plaza LLC and Strickland, Incorporated dba Livingston True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/20/2039

 
233.4

 
219.5

 
235.6

 
0.09
%
^510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/19/2024

 
332.0

 
256.2

 
262.9

 
0.10
%
^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
920.3

 
865.5

 
936.2

 
0.37
%
^Hotels of North Georgia LLC dba Comfort Inn and Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039

 
837.5

 
787.6

 
852.0

 
0.33
%
^Global Educational Delivery Services LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2024

 
60.0

 
45.3

 
46.5

 
0.02
%
^Rainbow Dry Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2024

 
122.5

 
91.4

 
91.5

 
0.04
%
^NVR Corporation dba Discount Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/11/2039

 
68.3

 
62.1

 
67.2

 
0.03
%
^Sico & Walsh Insurance Agency Inc and The AMS Trust
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/6/2039

 
250.0

 
88.4

 
95.6

 
0.04
%
^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024

 
22.5

 
16.8

 
16.7

 
0.01
%
^Long Island Barber + Beauty LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2039

 
55.5

 
52.2

 
55.9

 
0.02
%
^CJR LLC and PowerWash Plus, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
53.0

 
39.1

 
39.9

 
0.02
%
^Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024

 
22.5

 
16.6

 
17.0

 
0.01
%

56
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
128.1

 
96.5

 
95.5

 
0.04
%
^EGM Food Services Inc dba Gold Star Chili
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024

 
19.2

 
14.2

 
14.2

 
0.01
%
^R. A. Johnson, Inc. dba Rick Johnson Auto & Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/29/2039

 
943.8

 
522.0

 
564.6

 
0.22
%
^Jonesboro Health Food Center LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/27/2024

 
60.0

 
44.3

 
43.8

 
0.02
%
^Bay State Funeral Services, LLC and Riley Funeral Home Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/21/2039

 
134.9

 
127.0

 
137.4

 
0.05
%
^Hae M. and Jin S. Park dba Buford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039

 
166.5

 
155.6

 
166.0

 
0.06
%
^Moochie's LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2024

 
100.5

 
75.1

 
74.6

 
0.03
%
^The River Beas LLC and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039

 
90.3

 
85.3

 
91.5

 
0.04
%
^AS Boyals LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039

 
117.5

 
102.0

 
110.4

 
0.04
%
^Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039

 
20.8

 
19.5

 
21.1

 
0.01
%
^Gerami Realty, LC Sherrill Universal City Corral, LP
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027

 
78.7

 
64.0

 
66.5

 
0.03
%
^Island Wide Realty LLC and Long Island Partners, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/22/2039

 
103.8

 
97.3

 
105.3

 
0.04
%
^Wilshire Media Systems Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024

 
186.2

 
136.2

 
135.5

 
0.05
%
^1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/9/2039

 
137.5

 
127.9

 
137.7

 
0.05
%
^Little People's Village II LLC and Iliopoulos Realty LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
92.1

 
86.7

 
93.9

 
0.04
%
^Dantanna's Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024

 
164.3

 
121.2

 
124.0

 
0.05
%
^Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
449.0

 
419.9

 
456.5

 
0.18
%
^RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028

 
141.2

 
119.0

 
125.0

 
0.05
%
^Little People's Village II LLC and Iliopoulos Realty LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
101.5

 
95.6

 
103.5

 
0.04
%
^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024

 
750.0

 
542.5

 
556.8

 
0.22
%
^Kemmer, LLC and Pitts Package Store, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039

 
117.5

 
110.1

 
118.8

 
0.05
%

57
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Lake Area Autosound LLC and Ryan H. Whittington
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039

 
125.0

 
118.6

 
128.9

 
0.05
%
^Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2039

 
427.5

 
402.7

 
437.5

 
0.17
%
^Hascher Gabelstapler Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/26/2024

 
143.2

 
107.7

 
110.6

 
0.04
%
^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039

 
145.0

 
135.8

 
147.2

 
0.06
%
^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
497.5

 
74.9

 
81.5

 
0.03
%
^Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039

 
110.8

 
103.7

 
113.0

 
0.04
%
^Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024

 
41.3

 
21.5

 
22.1

 
0.01
%
^SE Properties 39 Old Route 146, LLC SmartEarly Clifton Park LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
408.0

 
382.7

 
416.7

 
0.16
%
^Tortilla King Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039

 
216.9

 
203.7

 
220.5

 
0.09
%
^Tortilla King, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029

 
1,033.1

 
888.4

 
929.4

 
0.36
%
^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039

 
223.5

 
209.0

 
227.6

 
0.09
%
^Avayaan2 LLC dba Island Cove
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/7/2039

 
157.5

 
147.3

 
160.0

 
0.06
%
^Onofrio's Fresh Cut Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/6/2024

 
75.0

 
54.2

 
55.8

 
0.02
%
^R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
417.5

 
389.8

 
423.1

 
0.17
%
^Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
350.6

 
251.0

 
257.5

 
0.10
%
^Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
214.2

 
200.3

 
217.1

 
0.08
%
^952 Boston Post Road Realty, LLC and HNA LLC dba Styles International
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039

 
211.0

 
197.0

 
213.6

 
0.08
%
^Choe Trade Group Inc dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024

 
159.3

 
114.0

 
117.5

 
0.05
%
^96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/12/2039

 
141.2

 
132.4

 
144.2

 
0.06
%
^JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024

 
280.0

 
200.4

 
204.4

 
0.08
%

58
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Awesome Pets II Inc dba Mellisa's Pet Depot
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
83.2

 
60.3

 
61.5

 
0.02
%
^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2039

 
99.1

 
92.9

 
100.9

 
0.04
%
^Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039

 
129.4

 
120.5

 
131.1

 
0.05
%
^JDR Industries Inc dba CST-The Composites Store, JetCat USA
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/21/2024

 
140.3

 
99.3

 
101.6

 
0.04
%
^Icore Enterprises Inc dba Air Flow Filters Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024

 
21.8

 
15.4

 
15.9

 
0.01
%
^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027

 
712.5

 
587.9

 
614.6

 
0.24
%
^Nutmeg North Associates LLC; Steeltech Building Products Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/31/2038

 
897.8

 
853.3

 
924.3

 
0.36
%
^Shane M. Howell and Buck Hardware and Garden Center, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/27/2038

 
322.5

 
300.4

 
325.2

 
0.13
%
^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2023

 
656.2

 
481.1

 
495.0

 
0.19
%
^KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028

 
190.0

 
158.1

 
165.7

 
0.06
%
^Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
88.9

 
82.6

 
89.9

 
0.04
%
^Mosley Auto Group LLC dba America's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038

 
221.5

 
206.0

 
223.9

 
0.09
%
^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038

 
555.2

 
516.3

 
559.6

 
0.22
%
^Lefont Theaters Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/19/2023

 
14.4

 
10.1

 
10.3

 
—
%
^TAK Properties LLC and Kinderland Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/18/2038

 
405.0

 
377.1

 
409.0

 
0.16
%
^TOL LLC dba Wild Birds Unlimited
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2023

 
18.0

 
13.0

 
13.3

 
0.01
%
^920 CHR Realty LLC and V. Garofalo Carting Inc
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/10/2038

 
418.1

 
388.8

 
423.0

 
0.17
%
^DKB Transport Corp
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038

 
138.8

 
129.0

 
140.4

 
0.05
%
^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2038

 
104.2

 
96.9

 
104.7

 
0.04
%

59
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Spectrum Development LLC and Solvit Inc & Solvit North, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023

 
387.3

 
276.2

 
282.5

 
0.11
%
^BVIP Limousine Service LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038

 
76.5

 
71.0

 
77.1

 
0.03
%
^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/27/2023

 
67.2

 
46.6

 
47.4

 
0.02
%
^Wallace Holdings LLC and GFA International Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.5%
 
11/25/2023

 
125.0

 
86.3

 
87.2

 
0.03
%
^AcuCall LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023

 
15.8

 
10.9

 
11.0

 
—
%
^Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2023

 
45.0

 
31.8

 
32.4

 
0.01
%
^Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023

 
75.0

 
52.0

 
52.9

 
0.02
%
^Howell Gun Works LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/14/2023

 
8.3

 
4.6

 
4.7

 
—
%
^Polpo Realty, LLC and Polpo Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/6/2038

 
62.5

 
57.8

 
62.9

 
0.02
%
^Twinsburg Hospitality Group LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
945.0

 
878.8

 
952.4

 
0.37
%
^Mid-Land Sheet Metal Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
137.5

 
127.6

 
138.6

 
0.05
%
^Master CNC Inc & Master Properties LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
596.6

 
552.6

 
597.6

 
0.23
%
^Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023

 
42.7

 
30.1

 
31.0

 
0.01
%
^1 North Restaurant Corp dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038

 
212.5

 
196.8

 
213.9

 
0.08
%
^New Image Building Services Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023

 
331.2

 
227.0

 
231.5

 
0.09
%
^Greenbrier Technical Services, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023

 
240.1

 
150.0

 
154.3

 
0.06
%
^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/24/2038

 
246.3

 
228.1

 
247.0

 
0.10
%
^Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/18/2023

 
87.5

 
60.0

 
61.2

 
0.02
%
^First Steps Real Estate Company, LLC and First Steps Preschool
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
97.6

 
90.2

 
97.5

 
0.04
%

60
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Lenoir Business Partners LLC (EPC) LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
322.7

 
273.2

 
296.6

 
0.12
%
^Top Properties LLC and LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
120.0

 
111.4

 
121.1

 
0.05
%
^Onofrios Enterprises LLC and Onofrios Fresh Cut, Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
312.5

 
289.9

 
314.6

 
0.12
%
^Discount Wheel and Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
223.8

 
206.7

 
223.9

 
0.09
%
^Cencon Properties LLC and Central Connecticut Warehousing Company, Inc
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038

 
344.5

 
318.7

 
346.5

 
0.14
%
^Gabrielle Realty, LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
757.6

 
699.8

 
757.9

 
0.30
%
^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038

 
335.1

 
309.5

 
335.6

 
0.13
%
^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Home
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
100.0

 
92.4

 
100.4

 
0.04
%
^Eastside Soccer Dome, Inc .
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
463.7

 
428.3

 
465.7

 
0.18
%
^HJ & Edward Enterprises, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023

 
262.5

 
183.7

 
188.3

 
0.07
%
^Southeast Chicago Soccer, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038

 
51.3

 
47.3

 
51.5

 
0.02
%
^Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038

 
89.2

 
83.5

 
90.3

 
0.04
%
^Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023

 
14.2

 
8.5

 
8.6

 
—
%
^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023

 
46.2

 
31.5

 
32.1

 
0.01
%
^Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2038

 
268.4

 
248.3

 
269.2

 
0.11
%
^Westville Seafood LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038

 
112.3

 
103.7

 
112.4

 
0.04
%
^Maynard Enterprises Inc dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023

 
16.0

 
11.0

 
11.2

 
—
%
^Grafio Inc dba Omega Learning Center-Acworth
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2023

 
156.2

 
112.4

 
114.5

 
0.04
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028

 
54.8

 
44.9

 
46.8

 
0.02
%
^The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023

 
421.3

 
295.0

 
300.3

 
0.12
%

61
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Prospect Kids Academy Inc
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
124.3

 
114.8

 
124.6

 
0.05
%
^Alma J. and William R. Walton (EPC) and Almas Child Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038

 
39.5

 
36.5

 
39.7

 
0.02
%
^B for Brunette dba Blo
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023

 
53.4

 
36.6

 
37.2

 
0.01
%
^Schmaltz Holdings, LLC and Schmaltz Operations, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/4/2038

 
224.2

 
205.8

 
223.0

 
0.09
%
^Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
130.2

 
87.3

 
89.7

 
0.04
%
^IlOKA Inc dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
687.5

 
460.7

 
470.0

 
0.18
%
^ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
906.3

 
410.9

 
422.2

 
0.17
%
^Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023

 
43.3

 
29.0

 
29.8

 
0.01
%
^Ramard Inc and Advanced Health Sciences Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023

 
187.5

 
125.7

 
127.4

 
0.05
%
^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/26/2023

 
85.8

 
54.3

 
55.8

 
0.02
%
^JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023

 
19.5

 
12.9

 
13.1

 
0.01
%
^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/14/2038

 
445.0

 
320.9

 
347.1

 
0.14
%
^Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023

 
22.5

 
15.1

 
15.4

 
0.01
%
^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/26/2038

 
190.0

 
174.8

 
189.3

 
0.07
%
^Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2023

 
11.2

 
7.7

 
7.9

 
—
%
^Angkor Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
93.0

 
85.7

 
93.1

 
0.04
%
^Harbor Ventilation Inc and Estes Investment, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038

 
92.1

 
3.8

 
4.1

 
—
%
^Tri County Heating and Cooling Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2023

 
87.8

 
58.1

 
59.7

 
0.02
%
^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023

 
53.7

 
35.6

 
36.1

 
0.01
%
^Maxiflex LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2023

 
153.5

 
100.0

 
102.7

 
0.04
%

62
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
97.5

 
89.5

 
97.2

 
0.04
%
^JRA Holdings LLC (EPC) Jasper County Cleaners Inc dba Superior Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038

 
121.0

 
109.6

 
119.1

 
0.05
%
^2161 Highway 6 Trail, LLC and R. H. Hummer JR., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026

 
1,250.0

 
722.4

 
751.3

 
0.29
%
^Blakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028

 
875.0

 
705.0

 
739.2

 
0.29
%
^KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/14/2023

 
343.8

 
225.0

 
228.4

 
0.09
%
^Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038

 
932.8

 
835.3

 
907.4

 
0.35
%
^Willowbrook Properties LLC Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
186.3

 
171.1

 
185.5

 
0.07
%
^Absolute Desire LLC and Mark H. Szierer Sophisticated Smile
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038

 
188.3

 
173.0

 
186.9

 
0.07
%
^RXSB, Inc dba Medicine Shoppe
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/30/2023

 
186.3

 
120.5

 
122.1

 
0.05
%
^Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/28/2023

 
63.5

 
41.6

 
42.5

 
0.02
%
^Ryan D. Thornton and Thornton & Associates LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023

 
68.7

 
32.2

 
32.6

 
0.01
%
^PowerWash Plus, Inc. and CJR, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2038

 
550.0

 
503.8

 
545.2

 
0.21
%
^Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023

 
100.0

 
63.5

 
64.4

 
0.03
%
^Brothers International Desserts
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2023

 
230.0

 
146.9

 
150.2

 
0.06
%
^Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023

 
78.7

 
50.9

 
51.9

 
0.02
%
^1258 Hartford TPKE, LLC and Phelps and Sons, Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
124.6

 
113.7

 
123.8

 
0.05
%
^Capital Scrap Metal, LLC and Powerline Investment, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
500.0

 
434.7

 
474.2

 
0.19
%
^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038

 
336.0

 
307.2

 
334.1

 
0.13
%
^Neyra Industries, Inc. and Edward Neyra
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
217.5

 
137.2

 
140.9

 
0.06
%
^A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038

 
330.3

 
301.3

 
328.4

 
0.13
%

63
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028

 
271.8

 
215.4

 
226.5

 
0.09
%
^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2038

 
537.4

 
490.6

 
534.2

 
0.21
%
^Michael A.and HeatherR. Welsch dba Art & FrameEtc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038

 
67.5

 
61.6

 
67.1

 
0.03
%
^M & H Pine Straw Inc and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
288.7

 
198.8

 
204.1

 
0.08
%
^Truth Technologies Inc dba Truth Technologies Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023

 
79.5

 
50.1

 
51.3

 
0.02
%
^J. Kinderman & Sons Inc., dba BriteStar Inc.
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2023

 
181.2

 
116.7

 
119.9

 
0.05
%
^Stellar Environmental LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023

 
56.3

 
35.5

 
36.5

 
0.01
%
^Sound Manufacturing, Inc. and Monster Power Equipment Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023

 
523.0

 
328.5

 
336.9

 
0.13
%
^Golden Gate Lodging LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038

 
115.0

 
105.0

 
114.4

 
0.04
%
^Bakhtar Group LLC dba Malmaison
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023

 
103.8

 
65.2

 
66.6

 
0.03
%
^River Club Golf Course Inc dba The River Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2038

 
475.2

 
432.8

 
471.5

 
0.18
%
^Osceola River Mill, LLC and Ironman Machine, Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038

 
86.2

 
78.6

 
85.6

 
0.03
%
^Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038

 
51.0

 
46.5

 
50.7

 
0.02
%
^Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038

 
106.2

 
96.8

 
105.5

 
0.04
%
^Outcome Driven Innovation, Inc. dba ODI
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/12/2023

 
84.9

 
52.2

 
53.3

 
0.02
%
^Knits R Us, Inc. dba NYC Sports / Mingle
 
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
2/11/2038

 
125.0

 
114.0

 
124.4

 
0.05
%
^North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023

 
15.0

 
9.3

 
9.6

 
—
%
^MJD Investments, LLC dba The Community Day School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2038

 
258.2

 
234.8

 
255.7

 
0.10
%
^Sherill Universal City dba Golden Corral
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038

 
440.5

 
402.0

 
437.8

 
0.17
%

64
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Macho LLC Madelaine Chocolate Novelties Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037

 
500.0

 
455.9

 
497.0

 
0.19
%
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022

 
97.5

 
59.2

 
60.5

 
0.02
%
^Babie Bunnie Enterprises Inc dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2027

 
46.3

 
32.8

 
34.2

 
0.01
%
^John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022

 
513.8

 
312.2

 
320.4

 
0.13
%
^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2037

 
517.5

 
470.2

 
512.6

 
0.20
%
^Martin L Hopp, MD PHD A Medical Cor dba Tower ENT
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022

 
66.3

 
40.0

 
40.9

 
0.02
%
^Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027

 
389.6

 
303.6

 
317.4

 
0.12
%
^United Woodworking, Inc
 
Wood Product Manufacturing
 
Term Loan
 
6%
 
12/20/2022

 
17.2

 
11.1

 
11.4

 
—
%
^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/20/2022

 
225.0

 
136.1

 
139.4

 
0.05
%
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037

 
286.5

 
262.0

 
285.4

 
0.11
%
^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
11/28/2037

 
223.8

 
204.2

 
222.6

 
0.09
%
^D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/27/2022

 
9.8

 
5.8

 
6.0

 
—
%
^Richmond Hill Mini Market, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037

 
185.3

 
167.8

 
182.7

 
0.07
%
^DRV Enterprise, Inc. dba Cici's Pizza # 339
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/26/2022

 
65.0

 
36.2

 
37.2

 
0.01
%
^U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037

 
96.2

 
87.1

 
95.0

 
0.04
%
^Pioneer Windows Manufacturing Corp, Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022

 
275.0

 
164.2

 
168.1

 
0.07
%
^R & J Petroleum LLC Manar USA, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/20/2037

 
180.0

 
162.9

 
177.5

 
0.07
%
^St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022

 
21.0

 
12.6

 
12.9

 
0.01
%
^Hi-Def Imaging, Inc. dba SpeedPro Imaging
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/9/2022

 
22.2

 
13.3

 
13.6

 
0.01
%
^Reidville Hydraulics Mfg Inc dba Summit
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/2/2037

 
265.9

 
240.7

 
261.5

 
0.10
%
^Big Apple Entertainment Partners, LLC dba Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/26/2022

 
180.0

 
108.9

 
111.1

 
0.04
%

65
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^LA Diner Inc dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/28/2037

 
677.5

 
618.7

 
673.8

 
0.26
%
^University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022

 
76.0

 
44.2

 
45.3

 
0.02
%
^Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/26/2037

 
183.8

 
166.9

 
181.5

 
0.07
%
^LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Mark
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2037

 
252.3

 
227.3

 
247.2

 
0.10
%
^O'Rourkes Diner LLC dba O'Rourke's Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2037

 
65.5

 
59.0

 
64.1

 
0.03
%
^AJK Enterprise LLC dba AJK Enterprise LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022

 
16.5

 
9.4

 
9.7

 
—
%
^New Image Building Services, Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/23/2037

 
285.7

 
257.0

 
278.9

 
0.11
%
^Suncoast Aluminum Furniture, Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037

 
360.0

 
323.9

 
352.8

 
0.14
%
^Georgia Safe Sidewalks LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
15.0

 
8.4

 
8.6

 
—
%
^Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022

 
107.2

 
60.7

 
62.1

 
0.02
%
^Central Tire, Inc. dba Cooper Tire & Auto Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037

 
288.5

 
258.1

 
280.4

 
0.11
%
^WPI, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2024

 
129.5

 
84.8

 
87.5

 
0.03
%
^Havana Central (NY) 5, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2022

 
1,166.8

 
736.2

 
753.5

 
0.29
%
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037

 
69.7

 
62.4

 
67.8

 
0.03
%
^KIND-ER-ZZ Inc dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022

 
50.0

 
27.6

 
28.1

 
0.01
%
^Graphish Studio, Inc. and Scott Fishoff
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2022

 
20.2

 
11.3

 
11.5

 
—
%
^ALF, LLC (EPC) Mulit-Service Eagle Tires
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037

 
62.9

 
56.2

 
61.1

 
0.02
%
^Craig R Freehauf dba Lincoln Theatre
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/31/2022

 
47.9

 
19.4

 
19.9

 
0.01
%
^Lefont Theaters, Inc.
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/30/2022

 
137.0

 
75.3

 
77.0

 
0.03
%
^Christou Real Estate Holdings LLC dba Tops American Grill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/17/2037

 
284.0

 
253.2

 
275.5

 
0.11
%

66
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Tracey Vita-Morris dba Tracey Vita's School of Dance
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/10/2022

 
22.5

 
12.4

 
12.6

 
—
%
^Bisson Transportation, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2037

 
588.1

 
550.0

 
597.0

 
0.23
%
^Bisson Moving & Storage Company Bisson Transportation Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2022

 
528.7

 
331.6

 
339.3

 
0.13
%
^Fair Deal Food Mart Inc dba Neighbors Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/3/2037

 
381.3

 
340.3

 
370.3

 
0.14
%
^Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022

 
8.2

 
4.4

 
4.5

 
—
%
^Zane Filippone Co Inc dba Culligan Water Conditioning
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/12/2022

 
558.2

 
302.4

 
309.3

 
0.12
%
^Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022

 
19.5

 
5.8

 
6.0

 
—
%
^Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022

 
187.5

 
99.9

 
101.9

 
0.04
%
^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2031

 
231.5

 
189.5

 
201.9

 
0.08
%
^Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2037

 
755.4

 
674.1

 
734.2

 
0.29
%
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037

 
3,133.8

 
2,623.4

 
2,857.6

 
1.12
%
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
3/23/2022

 
1,540.0

 
771.7

 
789.6

 
0.31
%
^Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028

 
103.7

 
78.9

 
82.8

 
0.03
%
^Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027

 
1,178.8

 
868.8

 
908.9

 
0.36
%
^ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026

 
852.8

 
604.2

 
631.8

 
0.25
%
^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2036

 
495.0

 
443.5

 
482.7

 
0.19
%
^K's Salon, LLC d/b/a K's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021

 
73.6

 
37.4

 
38.0

 
0.01
%
^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021

 
250.0

 
125.1

 
127.7

 
0.05
%
^M & H Pinestraw, Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021

 
238.2

 
135.5

 
138.3

 
0.05
%

67
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Taylor Transport, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021

 
515.5

 
157.7

 
161.2

 
0.06
%
^MRM Supermarkets, Inc. dba Constantin's Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/10/2021

 
137.5

 
68.5

 
70.0

 
0.03
%
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021

 
58.7

 
29.2

 
29.8

 
0.01
%
^28 Cornelia Street Properties, LLC and Zouk, Ltd.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2021

 
22.5

 
11.0

 
11.2

 
—
%
^39581 Garfield, LLC and Tri County Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
83.3

 
72.9

 
79.2

 
0.03
%
^PTK, Incorporated dba Night N Day 24 HR Convenience Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
137.5

 
120.5

 
131.0

 
0.05
%
^Robert E. Caves, Sr. and American Plank dba Caves Enterprises
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021

 
302.5

 
145.3

 
148.3

 
0.06
%
^39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036

 
28.4

 
24.8

 
26.9

 
0.01
%
^Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2021

 
1,070.0

 
507.7

 
516.6

 
0.20
%
^Equity National Capital LLC & Chadbourne Road Capital, LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/26/2021

 
62.5

 
30.1

 
30.7

 
0.01
%
^Bryan Bantry Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/8/2021

 
400.0

 
40.3

 
41.0

 
0.02
%
^Michael S. Decker & Janet Decker dba The Hen House Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2036

 
16.4

 
14.3

 
15.5

 
0.01
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021

 
187.5

 
83.7

 
85.3

 
0.03
%
^Trademark Equipment Company Inc and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036

 
133.6

 
116.8

 
126.9

 
0.05
%
^Valiev Ballet Academy, Inc
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
91.5

 
37.1

 
40.3

 
0.02
%
^A & A Auto Care, LLC dba A & A Auto Care, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036

 
101.0

 
89.0

 
96.8

 
0.04
%
^LaHoBa, LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036

 
77.5

 
67.3

 
73.2

 
0.03
%
^Kelly Chon LLC dba Shi-Golf
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/29/2021

 
17.5

 
4.7

 
4.8

 
—
%
^MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036

 
248.5

 
218.4

 
237.0

 
0.09
%

68
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Lavertue Properties LLP dba Lavertue Properties
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
44.7

 
39.1

 
42.5

 
0.02
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036

 
338.1

 
305.9

 
332.2

 
0.13
%
^Pierce Developments, Inc. dba Southside Granite
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/13/2036

 
256.1

 
222.7

 
241.5

 
0.09
%
^Major Queens Body & Fender Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/10/2021

 
28.6

 
13.0

 
13.2

 
0.01
%
^J&K Fitness, LLC dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/8/2036

 
449.3

 
401.0

 
435.4

 
0.17
%
^Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/3/2021

 
65.5

 
28.5

 
29.0

 
0.01
%
^Demand Printing Solutions, Inc. and MLM Enterprises, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/27/2021

 
16.5

 
7.3

 
7.5

 
—
%
^Modern on the Mile, LLC dba Ligne Roset
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/25/2021

 
212.5

 
93.5

 
95.1

 
0.04
%
^Profile Performance, Inc. and Eidak Real Estate, L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036

 
127.5

 
110.3

 
119.9

 
0.05
%
^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036

 
129.5

 
114.1

 
124.0

 
0.05
%
^Michael S. Korfe dba North Valley Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036

 
15.5

 
13.4

 
14.5

 
0.01
%
^Actknowledge,Inc dba Actknowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2021

 
57.3

 
24.5

 
25.0

 
0.01
%
^Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/10/2021

 
153.0

 
65.6

 
66.8

 
0.03
%
^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2023

 
63.0

 
32.5

 
33.5

 
0.01
%
^SuzyQue’s LLC dba Suzy Que’s
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036

 
61.0

 
52.7

 
57.3

 
0.02
%
^Little People’s Village, LLC dba Little People’s Village
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2036

 
31.1

 
26.7

 
29.0

 
0.01
%
^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036

 
113.4

 
97.4

 
105.9

 
0.04
%
^Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2020

 
7.6

 
2.9

 
3.0

 
—
%
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
 
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035

 
145.9

 
131.7

 
143.0

 
0.06
%

69
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Groundworks Unlimited LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023

 
120.0

 
74.1

 
76.6

 
0.03
%
^Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035

 
27.7

 
23.7

 
25.8

 
0.01
%
^Lodin Medical Imaging, LLC dba Watson Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/1/2020

 
66.4

 
26.2

 
26.6

 
0.01
%
^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2035

 
34.0

 
29.1

 
31.6

 
0.01
%
^West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/12/2035

 
148.7

 
127.2

 
138.1

 
0.05
%
^Lincoln Park Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020

 
43.5

 
14.2

 
14.5

 
0.01
%
^K9 Bytes, Inc & Epazz, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020

 
18.5

 
7.0

 
7.1

 
—
%
^Elan Realty, LLC and Albert Basse Asociates, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035

 
228.2

 
194.1

 
210.6

 
0.08
%
^Success Express,Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020

 
91.8

 
33.6

 
34.1

 
0.01
%
^Modern Manhattan, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
204.0

 
76.2

 
77.4

 
0.03
%
^Dirk's Trucking, L.L.C. dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020

 
17.7

 
6.4

 
6.5

 
—
%
^Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
50.1

 
42.5

 
46.1

 
0.02
%
^Newsome Trucking Inc and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035

 
423.1

 
206.1

 
223.6

 
0.09
%
^California College of Communications, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/2/2020

 
172.5

 
66.0

 
67.1

 
0.03
%
^DDLK Investments LLC dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
7.5

 
1.7

 
1.7

 
—
%
^Members Only Software
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020

 
40.2

 
14.3

 
14.5

 
0.01
%
^ActKnowledge,Inc dba ActKnowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2020

 
50.0

 
17.3

 
17.6

 
0.01
%
^I-90 RV & Auto Supercenter
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035

 
74.9

 
63.1

 
68.5

 
0.03
%
^Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020

 
27.5

 
9.9

 
10.1

 
—
%
^CJ Park Inc. dba Kidville Midtown West
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2020

 
26.4

 
7.2

 
7.3

 
—
%
^Tanner Optical Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035

 
94.6

 
80.2

 
86.9

 
0.03
%

70
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^M & H Pine Straw, Inc.and Harris Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
7/10/2020

 
67.5

 
28.2

 
28.6

 
0.01
%
^Excel RP, Inc./Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028

 
50.0

 
36.2

 
38.2

 
0.01
%
ValleyStar, Inc. dba BrightStar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
6.1

 
2.1

 
2.1

 
—
%
^ValleyStar, Inc. dba BrightStar Healthcare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020

 
7.5

 
2.6

 
2.6

 
—
%
^Diag, LLC dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2020

 
37.5

 
12.5

 
12.7

 
—
%
^M & H Pine Straw, Inc and Harris L. Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020

 
183.3

 
57.0

 
57.9

 
0.02
%
^New Economic Methods LLC dba Rita's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020

 
24.8

 
0.6

 
0.6

 
—
%
^Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2020

 
6.3

 
2.0

 
2.0

 
—
%
^Lahoba,LLC dba Papa John's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2034

 
42.5

 
35.4

 
38.3

 
0.01
%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2024

 
126.5

 
26.6

 
27.5

 
0.01
%
^David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
9.0

 
2.5

 
2.6

 
—
%
^CMA Consulting dba Construction Management Associates
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
58.5

 
14.9

 
15.1

 
0.01
%
^KMC RE, LLC & B&B Kennels
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2034

 
58.3

 
48.4

 
52.4

 
0.02
%
^Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019

 
10.0

 
2.8

 
2.8

 
—
%
^Demand Printing Solutions, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/29/2034

 
147.5

 
122.0

 
132.1

 
0.05
%
Rover Repairs
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
11/28/2029

 
72.5

 
52.1

 
37.8

 
0.01
%
^Supreme Screw Products
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019

 
308.2

 
60.8

 
61.3

 
0.02
%
^Gray Tree Service, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2018

 
50.0

 
7.4

 
7.5

 
—
%
^Gourmet to You, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019

 
12.1

 
2.4

 
2.4

 
—
%
^The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
6%
 
1/10/2019

 
22.5

 
10.2

 
10.3

 
—
%

71
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Grapevine Professional Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/22/2019

 
8.2

 
1.3

 
1.3

 
—
%
^Inflate World Corporation
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/30/2018

 
7.5

 
0.7

 
0.8

 
—
%
^Peter Thomas Roth Labs LL
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/26/2018

 
425.0

 
54.5

 
54.8

 
0.02
%
^CBA D&A Pope, LLC dba Christian Brothers Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/14/2018

 
144.9

 
15.5

 
15.6

 
0.01
%
^Gilbert Chiropractic Clinic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/7/2018

 
22.5

 
0.5

 
0.5

 
—
%
^D & D's Divine Beauty School of Esther, LLC
 
Educational Services
 
Term Loan
 
6%
 
8/1/2031

 
57.7

 
49.6

 
53.0

 
0.02
%
Bwms Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
0%
 
3/1/2018

 
5.1

 
0.2

 
0.2

 
—
%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
8/31/2019

 
87.5

 
68.6

 
69.4

 
0.03
%
^Zog Inc.
 
Other Information Services
 
Term Loan
 
6%
 
3/17/2018

 
97.5

 
52.0

 
52.2

 
0.02
%
^Saan M.Saelee dba Saelee's Delivery Service
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2018

 
9.8

 
0.7

 
0.7

 
—
%
Integrity Sports Group, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
6%
 
3/6/2018

 
75.0

 
30.9

 
31.0

 
0.01
%
^Enewhere Custom Canvas, LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
12.0

 
0.8

 
0.8

 
—
%
^A & A Acquisition, Inc. dba A & A International
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018

 
100.0

 
4.3

 
4.3

 
—
%
^All American Printing
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/26/2032

 
69.7

 
36.5

 
39.3

 
0.02
%
^Seo's Paradise Cleaners, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2018

 
9.7

 
0.2

 
0.2

 
—
%
Connect Litigation Technology, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2%
 
10/18/2025

 
150.6

 
25.8

 
18.4

 
0.01
%
^Margab, Inc. dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2017

 
44.0

 
1.4

 
1.4

 
—
%
^RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2017

 
21.1

 
0.9

 
0.9

 
—
%
^Tammy's Bakery, Inc. dba Tammy's Bakery
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/10/2017

 
71.8

 
3.1

 
3.1

 
—
%
^Kings Laundry,LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2017

 
64.5

 
0.7

 
0.7

 
—
%

72
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^1911 East Main Street Holdings, Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032

 
15.8

 
12.0

 
12.9

 
0.01
%
^Water Works Laundromat, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027

 
267.3

 
173.3

 
178.1

 
0.07
%
^Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026

 
52.6

 
30.2

 
31.6

 
0.01
%
^Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027

 
286.9

 
177.3

 
186.0

 
0.07
%
^Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
12/31/2018

 
64.5

 
28.3

 
28.5

 
0.01
%
^Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028

 
244.7

 
65.7

 
69.2

 
0.03
%
^Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031

 
12.0

 
8.7

 
9.3

 
—
%
^Christopher F. Bohon & Pamela D. Bohon
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/28/2026

 
5.1

 
3.1

 
3.2

 
—
%
Mogas Limited
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/31/2030

 
100.0

 
70.7

 
54.0

 
0.02
%
^Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030

 
76.9

 
62.4

 
66.3

 
0.03
%
^Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030

 
12.3

 
8.7

 
9.2

 
—
%
^Nancy Carapelluci & A & M Seasonal Corner Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/1/2025

 
25.1

 
13.5

 
14.0

 
0.01
%
Patricia Hughes Jones, MD PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
1/13/2020

 
18.0

 
4.1

 
2.9

 
—
%
^Moonlight Multi Media Production, Inc.
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025

 
7.0

 
2.9

 
3.0

 
—
%
David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
6%
 
8/26/2024

 
32.2

 
16.3

 
16.9

 
0.01
%
^McCallister Venture Group, LLC and Maw's Vittles, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029

 
17.2

 
11.1

 
11.8

 
—
%
^Computer Renaissance dba Dante IT Services, Inc.
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 3.75%
 
3/1/2018

 
13.5

 
0.6

 
0.6

 
—
%
^Chong Hun Im dba Kim's Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.5%
 
2/27/2024

 
18.3

 
8.6

 
8.8

 
—
%
Whirlwind Car Wash, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2%
 
4/9/2029

 
76.9

 
65.2

 
66.5

 
0.03
%
^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/5/2026

 
1,076.7

 
836.0

 
874.3

 
0.34
%
^Center-Mark Car Wash, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2024

 
52.3

 
25.6

 
26.5

 
0.01
%

73
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028

 
25.3

 
16.4

 
17.0

 
0.01
%
^Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028

 
28.8

 
16.6

 
17.5

 
0.01
%
^Delta Partners, LLC dba Delta Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
4/5/2029

 
61.1

 
40.8

 
42.6

 
0.02
%
^Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023

 
17.2

 
7.0

 
7.3

 
—
%
^B & J Manufacturing Corporation and Benson Realty Trust
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2%
 
3/30/2021

 
57.2

 
16.6

 
16.7

 
0.01
%
^RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023

 
14.3

 
6.3

 
6.4

 
—
%
^Taste of Inverness, Inc. dba China Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2%
 
6/29/2025

 
16.9

 
8.2

 
8.3

 
—
%
^Ralph Werner dba Werner Transmissions
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021

 
6.0

 
2.0

 
2.1

 
—
%
^M. Krishna, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
3/20/2025

 
53.2

 
8.8

 
8.9

 
—
%
^Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
9/14/2023

 
39.8

 
30.1

 
31.1

 
0.01
%
^OrthoQuest, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
3/12/2022

 
13.0

 
3.7

 
3.7

 
—
%
^CPN Motel, L.L.C. dba American Motor Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
4/30/2024

 
68.1

 
28.2

 
28.8

 
0.01
%
^Track Side Collision & Tire, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
10.2

 
4.6

 
4.7

 
—
%
^Duttakrupa, LLC dba Birmingham Motor Court
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/8/2023

 
22.6

 
11.1

 
11.3

 
—
%
^Deesha Corporation, Inc. dba Best Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
2/14/2025

 
53.2

 
25.4

 
26.0

 
0.01
%
^Maruti, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024

 
50.4

 
23.5

 
24.0

 
0.01
%
Willington Hills Equestrian Center LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022

 
19.5

 
12.5

 
12.9

 
0.01
%
^LABH, Inc. t/a Ramada Ltd.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/27/2024

 
85.1

 
37.7

 
38.5

 
0.02
%
^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023

 
15.7

 
6.3

 
6.5

 
—
%
^Gain Laxmi, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
5/31/2023

 
46.4

 
18.1

 
18.4

 
0.01
%
^Naseeb Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
3/31/2024

 
62.9

 
27.3

 
27.8

 
0.01
%

74
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
^Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023

 
17.1

 
5.7

 
5.9

 
—
%
^Karis, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
12/22/2023

 
34.1

 
12.2

 
12.3

 
—
%
^Five Corners, Ltd.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019

 
19.5

 
3.6

 
3.7

 
—
%
^Alyssa Corp dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/30/2023

 
65.7

 
39.5

 
40.2

 
0.02
%
^Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023

 
22.9

 
3.2

 
3.3

 
—
%
^Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022

 
25.8

 
9.8

 
10.1

 
—
%
^Delyannis Iron Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
12/8/2022

 
68.4

 
12.1

 
12.5

 
—
%
^P. Agrino, Inc. dba Andover Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/18/2021

 
32.6

 
7.5

 
7.6

 
—
%
^RJS Service Corporation
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/20/2021

 
18.1

 
5.3

 
5.4

 
—
%
Total Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
276,970.7

 
$
245,799.2

 
$
247,346.8

 
96.77
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing SBA Unguaranteed Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*^200 North 8th Street Associates LLC and Enchanted Acres Farm
 
Food Manufacturing
 
Term Loan
 
6.25%
 
5/4/2028

 
468.8

 
469.3

 
450.4

 
0.18
%
*^214 North Franklin, LLC and Winter Ventures, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
11/29/2037

 
81.7

 
81.7

 
—

 
—
%
*^A + Quality Home Health Care, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
8/1/2016

 
1.1

 
1.1

 
1.0

 
—
%
*^Advanced Machine & Technology, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025

 
67.1

 
67.3

 
37.7

 
0.01
%
*^Aegis Creative Communications, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.5%
 
11/30/2022

 
245.9

 
246.5

 
243.1

 
0.10
%
*^Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.75%
 
11/25/2040

 
68.3

 
68.4

 
42.0

 
0.02
%
*^Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.25%
 
9/18/2040

 
129.3

 
129.5

 
106.9

 
0.04
%
*^AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/14/2038

 
305.3

 
305.7

 
—

 
—
%
*AWA Fabrication & Construction, L.L.C.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025

 
34.7

 
34.8

 
—

 
—
%
*^B&B Fitness and Barbell, Inc. dba Elevations Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/22/2035

 
187.9

 
188.2

 
193.2

 
0.08
%
*Baker Sales, Inc. dba Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036

 
177.0

 
177.4

 
77.1

 
0.03
%

75
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^Fieldstone Quick Stop LLC Barber Investments LLC Thadius M B
 
Gasoline Stations
 
Term Loan
 
6%
 
9/30/2038

 
406.2

 
407.3

 
4.7

 
—
%
*^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar
 
Gasoline Stations
 
Term Loan
 
6.25%
 
8/15/2039

 
146.0

 
146.3

 
—

 
—
%
*^Calhoun Satellite Communications Inc and Transmission Solutions Group
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
809.7

 
811.7

 
437.2

 
0.17
%
*Calhoun Satellite Communications, Inc.
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/2/2026

 
188.7

 
189.1

 
170.2

 
0.07
%
*^Carolina Beefs, LLC dba Beef O'Brady's
 
Food Services and Drinking Places
 
Term Loan
 
6.75%
 
4/13/2025

 
16.5

 
16.5

 
—

 
—
%
*^Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
12/22/2035

 
59.0

 
59.0

 
56.6

 
0.02
%
*^Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
10/19/2022

 
43.4

 
43.5

 
—

 
—
%
*^CM Lab Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026

 
165.7

 
166.1

 
155.1

 
0.06
%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
6/17/2021

 
274.0

 
274.7

 
241.4

 
0.09
%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
6.25%
 
4/30/2022

 
94.1

 
94.3

 
—

 
—
%
*^D&G Capital LLC dba Miami Grill 277
 
Food Services and Drinking Places
 
Term Loan
 
6.5%
 
12/16/2025

 
81.8

 
82.0

 
53.3

 
0.02
%
*^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2018

 
0.7

 
0.7

 
0.6

 
—
%
*^Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/31/2035

 
125.8

 
126.0

 
119.2

 
0.05
%
*^Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/29/2023

 
64.7

 
64.8

 
61.3

 
0.02
%
*^Dill Street Bar and Grill Inc and WO Entertainment, Inc
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/27/2027

 
78.2

 
78.4

 
—

 
—
%
*Dr. Francis E. Anders, DVM
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
8/9/2015

 
1.6

 
1.6

 
1.5

 
—
%
*^DTM Parts Supply Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/2/2025

 
54.7

 
54.8

 
42.0

 
0.02
%
*^E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030

 
4,874.0

 
4,923.2

 
2,836.0

 
1.11
%
*^ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.75%
 
4/25/2024

 
386.4

 
386.8

 
87.2

 
0.03
%
*^ENI Inc. dba ENI Group, Inc
 
Other Information Services
 
Term Loan
 
6.75%
 
12/11/2025

 
32.8

 
32.8

 
—

 
—
%

76
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
9/26/2022

 
315.0

 
315.8

 
48.5

 
0.02
%
*^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
5/31/2023

 
107.2

 
107.4

 
64.4

 
0.03
%
*^Event Mecca LLC
Other Information Services
 
Term Loan
 
6%
 
4/10/2023

 
12.3

 
12.3

 
9.5

 
—
%
*^EZ Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
6%
 
1/31/2023

 
86.2

 
86.4

 
8.3

 
—
%
*^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/30/2022

 
232.9

 
233.5

 
25.8

 
0.01
%
*^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
4/25/2022

 
157.4

 
157.8

 
—

 
—
%
*^Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/27/2023

 
13.3

 
13.3

 
—

 
—
%
*^Grand Manor Realty, Inc. & Kevin LaRoe
Real Estate
 
Term Loan
 
6%
 
2/20/2023

 
18.9

 
19.0

 
17.7

 
0.01
%
*Guzman Group,LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
9/30/2019

 
182.8

 
183.3

 
167.6

 
0.07
%
*Harrelson Materials Management,Inc
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021

 
464.0

 
465.2

 
25.0

 
0.01
%
*^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC
 
Ambulatory Health Care Services
 
Term Loan
 
6.25%
 
6/30/2026

 
476.5

 
477.6

 
45.6

 
0.02
%
*^Hemingway Custom Cabinetry LLC
Furniture and Related Product Manufacturing
 
Term Loan
 
6.5%
 
9/25/2025

 
198.1

 
198.6

 
71.7

 
0.03
%
*^Home Again Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
6/30/2040

 
58.7

 
58.8

 
47.6

 
0.02
%
*^J Olson Enterprises LLC and Olson Trucking Direct, Inc.
 
Truck Transportation
 
Term Loan
 
6%
 
6/28/2025

 
626.9

 
628.4

 
79.0

 
0.03
%
*^J&M Concessions, Inc.dba A-1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
6.25%
 
3/3/2039

 
130.2

 
130.6

 
64.7

 
0.03
%
*^J&M Concessions Inc dba A 1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
79.8

 
80.0

 
20.2

 
0.01
%
*^Jacksonville Beauty Institute Inc. dba Beauty Institute's
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025

 
43.6

 
43.7

 
40.8

 
0.02
%
*Jenny's Wunderland, Inc.
 
Social Assistance
 
Term Loan
 
6%
 
6/29/2036

 
128.5

 
128.8

 
32.0

 
0.01
%
*^Karykion, Corporation dba Karykion Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
6/28/2022

 
144.4

 
144.8

 
135.2

 
0.05
%
*^Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.25%
 
10/29/2039

 
64.1

 
64.2

 
57.5

 
0.02
%
*^Kids at Heart,LLC dba Monster Mini Golf
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.75%
 
9/22/2026

 
21.5

 
21.6

 
12.5

 
—
%
*Krishna of Orangeburg, Inc.
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032

 
10.3

 
10.3

 
5.7

 
—
%
*^Kup's Auto Spa Inc
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
11/15/2038

 
365.9

 
366.8

 
342.5

 
0.13
%

77
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*Kup’s Auto Spa, Inc.
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
10/23/2025

 
54.6

 
54.7

 
51.1

 
0.02
%
*^Las Torres Development LLC dba Houston Event Centers
 
Real Estate
 
Term Loan
 
6%
 
8/27/2028

 
51.0

 
51.0

 
—

 
—
%
*^M and C Renovations Inc
 
Construction of Buildings
Term Loan
 
Prime plus 2.75%
 
10/31/2024

 
13.7

 
13.8

 
10.7

 
—
%
*^Matchless Transportation LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
6.25%
 
8/3/2022

 
125.6

 
125.9

 
111.8

 
0.04
%
*^Milliken and Milliken, Inc. dba Milliken Wholesale Distribution
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
6%
 
6/10/2036

 
25.6

 
25.6

 
—

 
—
%
*^Mojo Brands Media, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
6%
 
8/28/2023

 
723.1

 
725.0

 
340.6

 
0.13
%
*Morris Glass and Construction
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
3/7/2021

 
44.8

 
44.8

 
2.7

 
—
%
*Municipal Hydro Sevices Inc.
 
Rental and Leasing Services
Term Loan
 
Prime plus 2.75%
 
3/30/2027

 
258.4

 
259.0

 
159.0

 
0.06
%
*^New Paltz Dental Care, PLLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
6/19/2025

 
97.3

 
97.5

 
59.8

 
0.02
%
*^Colts V LLC and Nowatzke Service Center, Inc
 
Repair and Maintenance
 
Term Loan
 
6.75%
 
9/26/2039

 
576.2

 
577.6

 
546.7

 
0.21
%
*^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026

 
96.7

 
96.9

 
91.8

 
0.04
%
*Our Two Daughters L.L.C. dba Washington's Restaurant
 
Food Services and Drinking Places
Term Loan
 
6%
 
6/18/2026

 
674.2

 
681.0

 
65.3

 
0.03
%
*^Planet Verte, LLC dba Audio Unlimited
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020

 
16.4

 
16.4

 
13.9

 
0.01
%
*Professional Systems, LLC and Professional Cleaning
 
Administrative and Support Services
 
Term Loan
 
6%
 
7/30/2020

 
131.6

 
131.8

 
2.4

 
—
%
*^Route 130 SCPI Holdings LLC Route 130 SCPI Operations LLC
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
9/30/2039

 
535.1

 
536.4

 
306.4

 
0.12
%
*^Scoville Plumbing & Heating Inc and Thomas P. Scoville
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/25/2022

 
32.0

 
32.1

 
30.4

 
0.01
%
*^Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
6.25%
 
12/20/2032

 
8.0

 
8.0

 
—

 
—
%
*^Sourceco Limited Liability Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025

 
44.9

 
45.0

 
43.2

 
0.02
%
*^Sovereign Communications LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024

 
707.3

 
709.1

 
671.2

 
0.26
%
*^Square Deal Siding Company, LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
20.2

 
20.3

 
19.4

 
0.01
%
*^STK Ventures Inc dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
5/9/2037

 
31.6

 
31.6

 
—

 
—
%
*^Stormrider Inc dba Shirley's Stormrider Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025

 
60.2

 
60.3

 
—

 
—
%
*^Stormrider Inc dba Shirley's Stormrider, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024

 
119.1

 
119.4

 
43.4

 
0.02
%

78
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
*Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036

 
110.9

 
111.2

 
—

 
—
%
*The Law Office of Joseph A. Foistner Esquire and Affiliates,PC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2027

 
62.3

 
62.5

 
—

 
—
%
*^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/16/2021

 
34.3

 
34.3

 
32.5

 
0.01
%
*Transmission Solutions Group, Inc. and Calhoun Satellite Communications
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/2/2041

 
140.9

 
141.3

 
72.0

 
0.03
%
*^Will Zac Management LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
12/19/2024

 
42.4

 
42.5

 
39.7

 
0.02
%
*^Winter Ventures Inc and 214 N Franklin LLC
 
Nonstore Retailers
 
Term Loan
 
6%
 
4/29/2024

 
56.5

 
56.6

 
—

 
—
%
*^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
12/23/2024

 
149.1

 
149.3

 
—

 
—
%
*^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
4/3/2029

 
134.4

 
134.5

 
—

 
—
%
*^Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
6.25%
 
6/30/2024

 
320.6

 
321.4

 
312.7

 
0.12
%
*^Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
6.25%
 
7/3/2024

 
137.9

 
138.3

 
23.0

 
0.01
%
Total Non-Performing Unguaranteed SBA Investments
 
 
 
 
 
 
 
 
 
19,246.5

 
19,332.8

 
9,789.2

 
3.83
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Unguaranteed SBA Investments
 
 
 
 
 
 
 
 
 
296,217.2

 
265,132.0

 
257,136.0

 
100.60
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA Guaranteed Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Party By Design Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2042

 
3,615.0

 
3,615.0

 
4,075.9

 
1.59
%
NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
3,082.5

 
3,082.5

 
3,391.5

 
1.33
%
SSN GROUP LLC and Dockside Steel Processing LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
3,750.0

 
3,750.0

 
4,125.9

 
1.61
%
Dan Cline Transport Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2030

 
3,016.5

 
3,016.5

 
3,272.9

 
1.28
%
Harco Metal Products Inc
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/29/2042

 
4,401.0

 
4,401.0

 
4,945.6

 
1.93
%
JBK Truck Trailer and Bus Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/23/2042

 
236.3

 
236.3

 
269.0

 
0.11
%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
3/27/2042

 
411.5

 
411.5

 
465.8

 
0.18
%
Swantown Inn & Spa LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/26/2042

 
85.3

 
85.3

 
97.1

 
0.04
%

79
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Bear Creek Entertainment LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/12/2041

 
1,172.3

 
1,172.3

 
1,329.1

 
0.52
%
House of Bread & Coffee Corp dba Casa Do Pao
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/27/2042

 
407.1

 
407.1

 
463.5

 
0.18
%
CR Park Incorporated dba Define Body and Mind
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/20/2027

 
82.5

 
82.5

 
91.6

 
0.04
%
AP6 LLC and Amishp LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2042

 
323.3

 
323.3

 
368.1

 
0.14
%
Sneads Ferry Foods, Inc. dba DQ Grill & Chill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/27/2042

 
989.9

 
989.9

 
1,120.7

 
0.44
%
Work of Heart Inc.dba Little Nest Portraits
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2027

 
64.1

 
64.1

 
71.2

 
0.03
%
Total SBA Guaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
21,637.3

 
$
21,637.3

 
$
24,088.0

 
9.42
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
317,854.5

 
$
286,769.3

 
$
281,224.0

 
110.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Advanced Cyber Security Systems, LLC (6), (18)
 
Data processing, hosting and related services.
 
50% Membership Interest
 
—
%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
3
%
 
December 2014

 
1,120.0

 
381.0

 
—

 
—
%
*Automated Merchant Services, Inc. (7), (18)
 
Data processing, hosting and related services.
 
100% Common Stock
 
—
%
 
—

 
—

 
—

 
—

 
—
%
CDS Business Services, Inc. (8)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—
%
 
—

 
—

 
4,428.0

 
5,500.0

 
2.15
%
 
 
 
 
Line of Credit
 
Prime plus 2.5%

 
August 2018

 
7,895.0

 
7,895.0

 
7,895.0

 
3.09
%
Newtek Technology Solutions, Inc. (11)
 
Data processing, hosting and related services.
 
100% Common Stock
 
—
%
 
—

 
—

 
8,384.0

 
16,000.0

 
6.26
%
*Fortress Data Management, LLC (18)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—
%
 
—

 
—

 
—

 
—

 
—
%
Newtek Insurance Agency, LLC (13), (18)
 
Insurance Carriers and Related Activities
 
100% Membership Interest
 
—
%
 
—

 
—

 
—

 
2,500.0

 
0.98
%
*PMTWorks Payroll, LLC (9)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—
%
 
—

 
—

 
725.1

 
—

 
—
%
 
 
 
 
Term Loan
 
10%-12%

 
Various maturities through July 2019

 
2,685.0

 
2,685.0

 
—

 
—
%
Secure CyberGateway Services, LLC (10), (18)
 
Data processing, hosting and related services.
 
66.7% Membership Interest
 
—
%
 
—

 
—

 
—

 
—

 
—
%
 
 
 
 
Term Loan
 
7
%
 
June 2017

 
2,400.0

 
300.0

 
—

 
—
%

80
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Small Business Lending, LLC (12), (18)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—
%
 
—

 
—

 
—

 
2,500.0

 
0.98
%
*Summit Systems and Designs, LLC (14), (18)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—
%
 
—

 
—

 
—

 
—

 
—
%
ADR Partners, LLC dba banc-serv Partners, LLC (12)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—
%
 
—

 
—

 
5,260.3

 
3,400.0

 
1.33
%
Premier Payments LLC (11)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—
%
 
—

 
—

 
16,438.0

 
21,000.0

 
8.22
%
International Professional Marketing, Inc. (17)
 
Professional, Scientific, and Technical Services
 
100% Common Stock
 
—
%
 
—

 
—

 
8,800.0

 
8,800.0

 
3.44
%
 
 
 
 
Line of Credit
 
Prime plus 0.5%

 
April 2018

 
200.0

 
200.0

 
200.0

 
0.08
%
SIDCO, LLC (17)
 
Professional, Scientific, and Technical Services
 
100% Membership Interest
 
—
%
 
—

 
—

 
2,320.0

 
2,320.0

 
0.91
%
 
 
 
 
Line of Credit
 
Prime plus 0.5%

 
—

 
345.0

 
345.0

 
345.0

 
0.13
%
Universal Processing Services of Wisconsin, LLC (11) (18)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—
%
 
—

 
—

 
—

 
66,000.0

 
25.82
%
Titanium Asset Management, LLC (15)
 
Administrative and Support Services
 
Term Loan
 
3
%
 
July 2017

 
2,200.0

 
193.9

 
—

 
—
%
 
 
 
 
100% Membership Interest
 
—
%
 
—

 
—

 
—

 
—

 
—
%
Excel WebSolutions, LLC (16)
 
Data processing, hosting and related services.
 
Term Loan
 
10
%
 
September 2018

 
1,020.2

 
535.4

 
489.0

 
0.19
%
 
 
 
 
50% Membership Interest
 
—
%
 
—

 
—

 
—

 
—

 
—
%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
17,865.2

 
$
58,890.7

 
$
136,949.0

 
53.58
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Money Market Funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Select Treasury Institutional Fund - 0.84% yield
 
 
 
 
 
 
 
 
 
$
9.4

 
$
9.4

 
$
9.4

 
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
335,729.1

 
$
345,669.4

 
$
418,182.4

 
163.60
%

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

81
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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


82
See accompanying notes to unaudited condensed consolidated financial statements.


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
%

83
See accompanying notes to unaudited condensed consolidated financial statements.


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
Cardinal Homes Inc,.Alouette Holdings Inc.
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026
 
1,071.3

 
1,071.3

 
1,074.5

 
0.51
%
D and E Hardware Co. and D and E Pump Sales and Service
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2041
 
528.6

 
528.6

 
518.6

 
0.25
%
Wayfarer Bicycle LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041
 
92.5

 
92.5

 
88.9

 
0.04
%
Success Advertising Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041
 
466.5

 
466.5

 
476.4

 
0.23
%
Roast Beef Levittown LLC dba Arby's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/13/2026
 
465.0

 
54.6

 
55.0

 
0.03
%
Queen Express LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/13/2041
 
187.5

 
187.5

 
191.6

 
0.09
%
Mack Team Enterprises Inc.dba The UPS Store #6815
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026
 
20.4

 
20.4

 
18.2

 
0.01
%
Recycling Revolution,LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/9/2041
 
92.2

 
92.2

 
90.4

 
0.04
%
Myndshft Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/9/2026
 
775.0

 
775.0

 
731.8

 
0.35
%
^New Life Hospital LLC
 
Hospitals
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041
 
1,195.5

 
1,195.5

 
1,240.3

 
0.59
%
Imagine By Carleen Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2041
 
52.5

 
52.5

 
53.3

 
0.03
%
Hanson's Greeks LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/8/2026
 
11.3

 
11.3

 
11.3

 
0.01
%
Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/7/2029
 
71.3

 
71.3

 
67.4

 
0.03
%
T & B Boots, Inc. dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/7/2026
 
100.0

 
100.0

 
93.0

 
0.04
%
Lan Doctors, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2026
 
237.5

 
237.5

 
230.8

 
0.11
%
^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2041
 
352.5

 
352.5

 
358.5

 
0.17
%
Lilo Holdings LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/5/2026
 
15.9

 
15.9

 
14.3

 
0.01
%
 Transmission Solutions Group, Inc. and Calhoun Satellite Communications
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/2/2041
 
141.3

 
141.3

 
130.2

 
0.06
%
Calhoun Satellite Communications, Inc.
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
12/2/2026
 
192.5

 
192.5

 
171.7

 
0.08
%

84
See accompanying notes to unaudited condensed consolidated financial statements.


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
Noso Development LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/1/2026
 
75.0

 
75.0

 
64.0

 
0.03
%
^Ericon, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/1/2041
 
726.1

 
726.1

 
717.8

 
0.34
%
^Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence,LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2041
 
67.5

 
67.5

 
70.0

 
0.03
%
Sharaz Shah DBA Thomas Jewelers
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
8.1

 
8.1

 
6.9

 
—
%
Choe Trading Group, Inc.dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
22.5

 
22.5

 
21.9

 
0.01
%
Studio Find It Georgia, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
7.5

 
7.5

 
6.5

 
—
%
^Quick Ship, LLC
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
10.5

 
10.5

 
9.0

 
—
%
B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
22.5

 
22.5

 
20.0

 
0.01
%
Imaginarium Foods LLC,
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042
 
376.7

 
124.4

 
129.2

 
0.06
%
RD Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2026
 
213.8

 
213.8

 
184.7

 
0.09
%
^Usman Jalil, LLC dba Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/29/2041
 
233.3

 
233.3

 
223.3

 
0.11
%
Honor Mansion, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026
 
87.5

 
87.5

 
88.1

 
0.04
%
Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/29/2026
 
1,125.0

 
1,125.0

 
960.4

 
0.46
%
WPN Recycling Company LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
22.5

 
22.5

 
22.7

 
0.01
%
Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
60.0

 
60.0

 
51.9

 
0.02
%
CRK Mens, LLC dba Spiff for Men
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
106.3

 
106.3

 
92.5

 
0.04
%
Merchant Coterie, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
11/23/2026
 
125.0

 
125.0

 
106.7

 
0.05
%
6E Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026
 
175.0

 
175.0

 
160.2

 
0.08
%

85
See accompanying notes to unaudited condensed consolidated financial statements.


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
Broms Asset Management LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026
 
125.0

 
125.0

 
106.7

 
0.05
%
Rognes Corp dba RTS
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
11/22/2026
 
389.3

 
389.3

 
354.1

 
0.17
%
Bouquet Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041
 
125.0

 
125.0

 
124.9

 
0.06
%
^J.B.K Truck Trailer and Bus Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/22/2041
 
435.0

 
435.0

 
427.8

 
0.20
%
Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/21/2026
 
100.0

 
100.0

 
100.7

 
0.05
%
Catherine Christine Morin dba Purr-Fect Pets
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/17/2026
 
18.8

 
18.8

 
16.0

 
0.01
%
Stratmar Systems Inc dba Stratmar Retail Services
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2026
 
68.5

 
68.5

 
69.0

 
0.03
%
Hoosier Health Plus, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/15/2026
 
125.0

 
125.0

 
116.8

 
0.06
%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2041
 
446.0

 
446.0

 
450.1

 
0.22
%
Hackensack Steel Corporation and Luzerne Ironworks Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026
 
239.2

 
239.2

 
238.8

 
0.11
%
^Panther Ironworks and Rigging Solutions LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026
 
151.3

 
151.3

 
138.0

 
0.07
%
^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/10/2026
 
188.8

 
188.8

 
184.8

 
0.09
%
^Bovill Creative,LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041
 
281.2

 
281.1

 
291.7

 
0.14
%
^Big Apple Entertainment Partners LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026
 
175.0

 
175.0

 
149.4

 
0.07
%
^Dyer Properties, LLC and Bayview Pharmacy, Inc.
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/9/2041
 
240.3

 
240.3

 
234.1

 
0.11
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026
 
43.8

 
43.8

 
40.5

 
0.02
%
MIK LLC dba Firehouse Subs
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026
 
200.0

 
163.3

 
141.6

 
0.07
%
Surgarloaf Concepts LLC dba Fat Biscuit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/8/2026
 
168.8

 
95.9

 
96.6

 
0.05
%
^Fine Line Interiors, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/4/2041
 
87.5

 
87.5

 
90.8

 
0.04
%

86
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Pig-Sty BBQ, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/3/2026
 
71.3

 
71.3

 
71.8

 
0.03
%
131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/3/2041
 
127.5

 
35.8

 
37.2

 
0.02
%
^Veracruz Shabo, LLC, Waterfalls Quick Lube LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/1/2041
 
118.8

 
118.8

 
119.6

 
0.06
%
Glocecol LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/1/2026
 
75.0

 
75.0

 
75.5

 
0.04
%
Middlesex Auto Sales Corp
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041
 
125.0

 
47.5

 
49.3

 
0.02
%
^Bloomquist Communications Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026
 
60.0

 
59.6

 
50.9

 
0.02
%
^Moolchan Enterprises LLC dba Staying Green
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2026
 
18.2

 
18.0

 
16.9

 
0.01
%
^Woodstock Enterprises Corp dba True Scent Candle Company
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041
 
88.8

 
88.6

 
85.2

 
0.04
%
^Patina Investment, Inc and Ram & Sons, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/27/2041
 
175.0

 
174.8

 
181.3

 
0.09
%
Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2029
 
225.0

 
225.0

 
217.4

 
0.10
%
^FibAire Communications, LLC
 
Telecommunications
 
Term Loan
 
Prime plus 2.75%
 
10/27/2026
 
107.5

 
106.8

 
97.6

 
0.05
%
^Bonita Stone LLC and Castone Creations Inc
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/25/2041
 
264.4

 
264.0

 
259.4

 
0.12
%
^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc.
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/25/2026
 
131.3

 
130.5

 
131.4

 
0.06
%
Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
10/24/2026
 
425.0

 
422.4

 
416.6

 
0.20
%
Eco Vehicle Systems LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/21/2026
 
955.5

 
949.8

 
940.4

 
0.45
%
Worldwide Estate, Inc. dba Washington Heights Manor
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/21/2041
 
225.0

 
155.8

 
161.6

 
0.08
%
^Gold Wind Logistics LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/20/2041
 
175.0

 
175.0

 
181.6

 
0.09
%
^Speaker City, Inc. dba Rollin Thunder
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2041
 
125.0

 
124.8

 
125.3

 
0.06
%
^Maine Service Corp
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026
 
206.3

 
204.3

 
190.3

 
0.09
%
^Justin Partlow
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/13/2026
 
19.5

 
19.4

 
16.5

 
0.01
%

87
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Reliable Recovery Services LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/7/2026
 
112.5

 
111.8

 
101.4

 
0.05
%
^Ailky Corporation
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026
 
250.0

 
248.5

 
217.5

 
0.10
%
^Wyspen Corporation dba Charlestown Ace
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/3/2026
 
36.0

 
35.8

 
30.5

 
0.01
%
^JJA Transportation Management Inc.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026
 
52.5

 
51.9

 
44.3

 
0.02
%
^MegaPhase, LLC
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2026
 
150.0

 
148.2

 
141.8

 
0.07
%
^Seaway LLC and Reklaw LLC dba Allure Lounge
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041
 
137.5

 
137.1

 
142.2

 
0.07
%
^Adelworth Bus Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2041
 
242.8

 
242.1

 
236.6

 
0.11
%
Adelwerth Bus Corporation, Transportation Leasing Corp.
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2029
 
654.0

 
648.5

 
619.6

 
0.30
%
^Las Casuelas Del Este Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/29/2041
 
800.0

 
799.4

 
811.3

 
0.39
%
^Thunderdome Racing Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/29/2026
 
19.1

 
18.8

 
18.4

 
0.01
%
Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2029
 
671.5

 
665.8

 
619.7

 
0.30
%
Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026
 
648.0

 
640.1

 
586.2

 
0.28
%
^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Service
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041
 
405.8

 
404.6

 
382.3

 
0.18
%
^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041
 
850.0

 
847.6

 
879.0

 
0.42
%
^Beadon Inc
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026
 
22.5

 
22.2

 
22.0

 
0.01
%
^CD Game Exchange Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/28/2026
 
22.5

 
22.2

 
19.0

 
0.01
%
^CNC Precision Machine, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2041
 
1,250.0

 
1,246.5

 
1,230.6

 
0.59
%
^Kyle M Walker DDS,PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026
 
217.8

 
215.1

 
189.0

 
0.09
%
^Luna Nueva LLC dba Bio Builders
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026
 
15.0

 
14.8

 
13.0

 
0.01
%

88
See accompanying notes to unaudited condensed consolidated financial statements.


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
Reynolds Fence & Guardrail Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026
 
629.6

 
621.9

 
596.4

 
0.29
%
^Luv 2 Play Nor Call, LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/27/2026
 
52.5

 
51.9

 
46.3

 
0.02
%
^Sarah S Olelewe MD Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041
 
292.4

 
292.2

 
289.2

 
0.14
%
^TPFC,LLC dbaThe Picture Frame Company
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/26/2041
 
58.8

 
58.6

 
58.1

 
0.03
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026
 
9.0

 
8.9

 
8.7

 
—
%
^PeopleBest Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2026
 
15.0

 
14.8

 
12.6

 
0.01
%
^Mr. Mulch, Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2041
 
405.8

 
404.6

 
375.8

 
0.18
%
^B4 Fitness LLC dba The Zoo Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/23/2026
 
87.5

 
86.4

 
76.8

 
0.04
%
^InformationTelevision Network Inc
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
9/22/2041
 
836.8

 
835.6

 
856.4

 
0.41
%
^Kids at Heart,LLC dba Monster Mini Golf
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/22/2026
 
22.5

 
22.3

 
19.3

 
0.01
%
^GRA Financial Services Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/22/2026
 
12.0

 
11.9

 
10.1

 
—
%
^Wrecking Crew Media LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/21/2026
 
50.0

 
49.4

 
42.1

 
0.02
%
^Cuppiecakes LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2041
 
22.5

 
22.4

 
22.1

 
0.01
%
^Benoit's Towing and Recovery LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026
 
12.0

 
11.9

 
10.3

 
—
%
^Consulting Solutions Inc. and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2026
 
22.5

 
22.3

 
20.8

 
0.01
%
^Brittany Burns LLC dba Dreams Come True
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/19/2026
 
12.9

 
12.7

 
12.8

 
0.01
%
^Eyncon LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/16/2041
 
50.0

 
49.9

 
49.8

 
0.02
%
^Tresa S.Parris dba Wagging Tails Grooming
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/16/2026
 
8.0

 
7.9

 
6.8

 
—
%

89
See accompanying notes to unaudited condensed consolidated financial statements.


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
^The Merrin Group LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2026
 
175.0

 
172.9

 
164.8

 
0.08
%
^Rich's Food Stores LLC dba Hwy 55 of Wallace
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026
 
145.5

 
143.7

 
133.2

 
0.06
%
^Atlantic Alarm Systems and Services LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/14/2026
 
15.5

 
15.3

 
13.4

 
0.01
%
^Metropet Dog Center, Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2041
 
109.3

 
108.9

 
109.2

 
0.05
%
^Marquis Cattle Company
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
9/13/2026
 
50.0

 
49.7

 
50.1

 
0.02
%
^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/12/2041
 
82.5

 
82.3

 
79.6

 
0.04
%
^Artisan Infrastructure Holdings, LLC
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
9/7/2026
 
125.0

 
123.5

 
105.4

 
0.05
%
^SRA Mechanicial Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/6/2041
 
43.8

 
43.6

 
45.0

 
0.02
%
^Sandia Enterprises Inc dba Massage Envy Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/6/2026
 
62.5

 
61.7

 
52.7

 
0.03
%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2026
 
125.0

 
123.0

 
107.7

 
0.05
%
^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2026
 
586.8

 
576.0

 
514.8

 
0.25
%
^Clark Realty LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041
 
237.5

 
236.5

 
225.0

 
0.11
%
^Raem Corporation dba Dryclean Express
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041
 
72.5

 
72.2

 
73.9

 
0.04
%
^Suncrest Stone Products LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2041
 
649.6

 
646.9

 
596.9

 
0.29
%
^TAGR Inc dba Miami Grill 137and John Nakis
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/26/2026
 
106.8

 
104.8

 
91.7

 
0.04
%
^Warren Dale Warrington dba Custom Paint and Body
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/26/2041
 
101.3

 
100.8

 
101.6

 
0.05
%
^Albert Basse Associates Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
62.5

 
61.4

 
61.1

 
0.03
%
^Dean Technology Inc
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/25/2041
 
387.1

 
385.5

 
396.3

 
0.19
%
^Rosmel Pools Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
22.5

 
22.1

 
19.3

 
0.01
%
^Avery Management Inc. dba Whetstone Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
10.7

 
10.5

 
8.9

 
—
%

90
See accompanying notes to unaudited condensed consolidated financial statements.


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
^TR Companies LLC dba True Value Rental and Liberty Rental 4 U
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
90.0

 
88.4

 
75.4

 
0.04
%
^Tabadesa Associates Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/25/2026
 
22.5

 
22.1

 
18.8

 
0.01
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2041
 
500.0

 
366.5

 
380.2

 
0.18
%
^Tim's Tire & Automotive Center, LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/16/2026
 
816.6

 
797.7

 
721.6

 
0.35
%
^Luv 2 Play Temecula, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/15/2026
 
60.0

 
58.9

 
50.3

 
0.02
%
Bear Creek Entertainment LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/12/2041
 
437.5

 
279.1

 
284.3

 
0.14
%
^2 Cool Beans LLC dba Menchies's Frozen Yogurt
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/11/2026
 
82.5

 
81.0

 
69.1

 
0.03
%
^Grayson O Company
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/10/2041
 
625.0

 
622.4

 
639.7

 
0.31
%
^Charal Investments LLC dba Orange Theory Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
8/10/2026
 
87.5

 
85.9

 
73.3

 
0.04
%
^PCNKC Inc dba Plato's Closet
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/10/2026
 
18.8

 
18.5

 
16.2

 
0.01
%
^Paul Belanger dba Paul Belanger Landscaping
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/9/2026
 
15.0

 
14.7

 
12.6

 
0.01
%
^R Performance LLC dba Performance Automotive of San Diego
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2026
 
15.0

 
14.6

 
12.8

 
0.01
%
^The Hungry Rhino LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041
 
76.3

 
75.8

 
74.9

 
0.04
%
^Nicolette Reiser dba Comfort & Balance
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041
 
75.0

 
74.6

 
75.1

 
0.04
%
^USA General Investment LLC dba Braniff Paint and Body Shop
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2026
 
22.5

 
21.9

 
19.3

 
0.01
%
^Little Tree Huggers Child Care LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041
 
140.0

 
139.2

 
143.9

 
0.07
%
^303 Tower Drive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
7/29/2041
 
400.3

 
398.0

 
403.4

 
0.19
%
^KJCKD Inc dba Camelot Print & Copy Centers/Copy A Second
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041
 
587.0

 
583.7

 
578.9

 
0.28
%
^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026
 
300.0

 
292.6

 
249.7

 
0.12
%

91
See accompanying notes to unaudited condensed consolidated financial statements.


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
^676 Club LP dba The Green Door Tavern/The Drifter
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041
 
670.0

 
665.0

 
679.9

 
0.33
%
^MacIver Corporation dba Division Camera
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026
 
1,250.0

 
1,219.3

 
1,143.1

 
0.55
%
^J And G Group Services LLC and United Vending of Florida Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/28/2026
 
31.5

 
30.8

 
27.5

 
0.01
%
^Intrepid Trinity LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041
 
62.5

 
62.1

 
62.4

 
0.03
%
^Apple Tree NC Inc dba Williams Farm & Garden Center
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2041
 
337.0

 
335.1

 
327.8

 
0.16
%
^Kidtastic LLC dba The Little Gym of Audubon
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026
 
53.8

 
52.8

 
45.0

 
0.02
%
^GF Libations Inc dba Minuteman Press
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2041
 
40.5

 
39.5

 
34.9

 
0.02
%
^EPEC Juice LLC dba Jamba Juice
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026
 
82.5

 
81.5

 
69.5

 
0.03
%
^Pinco Pizza LLC dba Jet's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026
 
72.9

 
72.0

 
70.4

 
0.03
%
^Peckett's Inc
 
Crop Production
 
Term Loan
 
Prime plus 2.75%
 
7/27/2041
 
225.0

 
224.7

 
233.0

 
0.11
%
^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/27/2026
 
125.0

 
121.9

 
104.1

 
0.05
%
^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
7/26/2026
 
91.0

 
88.9

 
80.9

 
0.04
%
^Gino Italian American Deli and Meat Market Inc
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/25/2041
 
536.8

 
534.2

 
525.0

 
0.25
%
^My Sainath Inc dba Motel 6
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
7/22/2041
 
305.4

 
303.7

 
308.6

 
0.15
%
^Robert G Larson State Farm Insurance
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/22/2026
 
22.5

 
21.9

 
18.7

 
0.01
%
^J and D Resources LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2026
 
130.5

 
127.3

 
109.7

 
0.05
%
^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/18/2026
 
15.8

 
15.4

 
13.1

 
0.01
%
Franklin Firm LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/15/2041
 
173.3

 
172.9

 
171.6

 
0.08
%
^Billingsworks LLC dba Spoon Shine Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2026
 
9.7

 
9.4

 
9.5

 
—
%
^Be Beautiful LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
7/14/2041
 
66.5

 
66.1

 
67.2

 
0.03
%

92
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026
 
46.3

 
45.1

 
38.5

 
0.02
%
^Jacob Rugs LLC dba Rugs Outlet
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
7/13/2026
 
65.6

 
64.0

 
64.5

 
0.03
%
^RM Hawkins LLC dba Pure Water Tech West
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026
 
50.0

 
48.9

 
46.5

 
0.02
%
^Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
7/7/2026
 
14.3

 
13.9

 
12.2

 
0.01
%
Nevey's LLC dba Stark Food III
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041
 
293.9

 
246.6

 
254.5

 
0.12
%
^P L H Pharmaco Inc dba Farmacia San Jose
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
175.0

 
169.7

 
165.5

 
0.08
%
^Soregard Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041
 
278.8

 
276.8

 
260.2

 
0.12
%
^Martin Inventory Management LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
105.8

 
102.5

 
102.8

 
0.05
%
^Desert Tacos LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
98.8

 
98.3

 
91.3

 
0.04
%
^VMA Technologies LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
22.5

 
21.8

 
18.4

 
0.01
%
^Corning Lumber Company Inc and Frank R Close and Son Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/30/2029
 
195.5

 
191.3

 
193.4

 
0.09
%
^Castone Creations Inc
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026
 
87.5

 
84.8

 
74.7

 
0.04
%
^WGI, LLC dba Williams Grant Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041
 
131.3

 
130.3

 
128.8

 
0.06
%
^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2026
 
140.0

 
135.7

 
117.5

 
0.06
%
^KWG Industries, LLC dba Peterson & Marsh Metal Industries
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041
 
304.5

 
302.8

 
303.9

 
0.15
%
^Ninsa LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/29/2041
 
112.5

 
111.7

 
115.5

 
0.06
%
^E & P Holdings 1 LLC and Evans & Paul LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026
 
125.0

 
121.4

 
105.9

 
0.05
%
^MaidPro Marin dba MaidPro
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2026
 
17.6

 
17.0

 
14.3

 
0.01
%
^Edge Pest Control LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/27/2026
 
750.0

 
726.9

 
612.0

 
0.29
%
^All Printing Solutions, Inc. dba Pryntcomm
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
6/27/2041
 
545.6

 
542.4

 
513.8

 
0.25
%

93
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041
 
101.3

 
100.5

 
103.9

 
0.05
%
^Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026
 
50.0

 
48.5

 
40.8

 
0.02
%
^Yellow Cab Company of Kissimmee Inc
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/24/2041
 
56.8

 
56.4

 
53.2

 
0.03
%
^El Basha Inc dba RPM West San Fernando Valley
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
6/24/2026
 
22.5

 
20.8

 
17.5

 
0.01
%
^Long Island Comedy LLC dba Governors and New York Comedy, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041
 
187.5

 
186.2

 
184.4

 
0.09
%
^Visual Advantage LLC dba Signs Now Perryberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041
 
91.3

 
90.6

 
88.7

 
0.04
%
Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041
 
375.0

 
375.0

 
370.9

 
0.18
%
^SNS of Central Alabama, LLC dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/21/2026
 
57.5

 
55.7

 
50.2

 
0.02
%
^Italian Heritage Tile and Stone Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/20/2026
 
62.5

 
60.6

 
51.0

 
0.02
%
^Evergreen Investment & Property Management LLC ,Universal Kidney Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/20/2041
 
1,250.0

 
1,243.2

 
1,261.1

 
0.60
%
^Bagelicious, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026
 
54.6

 
52.9

 
44.8

 
0.02
%
^T and B Boots Inc dba Takken's Shoes
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
6/17/2026
 
225.0

 
218.4

 
217.4

 
0.10
%
^NKJ Lusby Donuts LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026
 
22.5

 
21.8

 
18.4

 
0.01
%
^Winegirl Wines LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026
 
11.3

 
10.9

 
10.9

 
0.01
%
^Blue Eagle Transport Inc, Greeneagle Transport Inc
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/16/2026
 
583.0

 
560.1

 
471.5

 
0.23
%
^Jai-Alexia Consulting, Inc.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026
 
11.8

 
11.5

 
9.6

 
—
%
^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares
 
Social Assistance
 
Term Loan
 
Prime plus 2%
 
6/15/2041
 
515.3

 
511.2

 
484.8

 
0.23
%
^Strag Industries LLC dba Meineke Car Care Center 841
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/15/2026
 
15.0

 
14.5

 
13.3

 
0.01
%
^Luv 2 Play AZ LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026
 
62.5

 
60.6

 
58.5

 
0.03
%

94
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Refoleen Inc dba Spice and Tea Exchange
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/10/2026
 
85.0

 
83.9

 
70.7

 
0.03
%
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2026
 
84.0

 
81.4

 
68.5

 
0.03
%
^ScimTech Industries Inc dba Archer Aerospace
 
Computer and Electronic Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026
 
12.0

 
11.6

 
9.8

 
—
%
^Larry H. Patterson and Rainbow Movers, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/6/2026
 
22.5

 
21.8

 
18.5

 
0.01
%
^Solvit Inc and Solvit North Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/3/2026
 
250.0

 
242.3

 
214.7

 
0.10
%
^AP5 LLC dba Krauser's Food Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/2/2041
 
242.5

 
240.8

 
239.1

 
0.11
%
^ATI Jet Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026
 
518.8

 
499.9

 
441.7

 
0.21
%
^Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/31/2026
 
50.0

 
48.1

 
48.3

 
0.02
%
Angelo Faia dba AVF Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/27/2041
 
100.0

 
98.7

 
97.3

 
0.05
%
^Premier Athletic Center of Ohio, Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/27/2026
 
87.5

 
84.3

 
84.6

 
0.04
%
^MNM Printing and Marketing Solutions LLC dba AlphaGraphics of Saint Louis
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/27/2026
 
18.8

 
18.1

 
15.2

 
0.01
%
^Mersada Holdings LLC
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026
 
337.5

 
325.0

 
326.1

 
0.16
%
^Jack Frost Firewood Inc. and David Dubinsky
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/26/2041
 
206.3

 
204.5

 
200.1

 
0.10
%
^Southwest Division Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
5/26/2026
 
8.3

 
7.9

 
7.1

 
—
%
^International Kitchen Supply LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026
 
186.8

 
179.8

 
160.3

 
0.08
%
^PennyLion LLC dba Creamistry
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026
 
81.0

 
81.0

 
70.1

 
0.03
%
^Groth Lumber Co. Inc. dba True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/25/2026
 
22.5

 
21.7

 
21.7

 
0.01
%
^Island Life Graphics Inc dba FASTSIGNS #576
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026
 
22.5

 
21.7

 
18.5

 
0.01
%
^Powerspec Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/24/2026
 
87.5

 
84.3

 
71.0

 
0.03
%

95
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Horseshoe Barbecue, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/23/2029
 
15.0

 
14.2

 
14.4

 
0.01
%
^Pro Auto Repair LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026
 
7.5

 
7.2

 
6.9

 
—
%
^Elderfriend Inc dba Granny Nannies dba GN Live Scan
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026
 
12.8

 
12.3

 
10.3

 
—
%
^CM Lab Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026
 
172.6

 
169.5

 
156.1

 
0.07
%
^National Air Cargo Holdings Inc
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2026
 
1,250.0

 
1,205.2

 
1,174.9

 
0.56
%
^J&A Laundromat Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026
 
67.5

 
65.0

 
56.3

 
0.03
%
^HBA LLC dba Palmetto Twist-Vista
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2026
 
22.5

 
21.7

 
18.7

 
0.01
%
^Dedicated Incorporated
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/18/2041
 
46.5

 
46.1

 
45.9

 
0.02
%
^Studio Find It Georgia Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026
 
22.5

 
21.7

 
18.9

 
0.01
%
^FJN Catering Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2041
 
262.5

 
260.7

 
266.9

 
0.13
%
^LED Lighting Enterprises LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026
 
22.5

 
21.7

 
18.8

 
0.01
%
^J. Harris Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/13/2026
 
60.0

 
41.6

 
37.4

 
0.02
%
^Luv 2 Play OC Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
5/12/2026
 
62.5

 
62.5

 
52.6

 
0.03
%
^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/12/2041
 
132.5

 
131.4

 
129.1

 
0.06
%
^The Delon Group LLC dba I Love Juice Bar
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/12/2026
 
55.0

 
53.0

 
44.6

 
0.02
%
^Sabir Inc. dba Bear Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/11/2041
 
123.8

 
122.9

 
124.1

 
0.06
%
^Gator D'Lites LLC dba D'Lites Emporium
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
5/5/2026
 
22.5

 
21.7

 
18.2

 
0.01
%
^Warner Home Comfort, LLC dba Smith Piping
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
82.5

 
81.7

 
80.4

 
0.04
%
^Keller, Fishback & Jackson LLP
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
131.8

 
125.1

 
125.5

 
0.06
%

96
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
22.5

 
21.5

 
18.1

 
0.01
%
^May-Craft Fiberglass Products Inc
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
247.5

 
245.0

 
253.3

 
0.12
%
^Alpha Omega Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
175.8

 
174.7

 
180.6

 
0.09
%
^Scoler LLC dba Gold's Gym
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
262.5

 
251.1

 
222.2

 
0.11
%
^Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
7.5

 
7.2

 
6.1

 
—
%
^La Nopalera Mexicano 2, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
125.5

 
123.0

 
123.5

 
0.06
%
^Euro Car Miami LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
62.5

 
59.9

 
60.1

 
0.03
%
^Hard Exercise Works Winter Park LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/29/2026
 
40.8

 
39.0

 
32.8

 
0.02
%
^Empowerschool LLC and Empower Autism Academy, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/29/2041
 
151.9

 
150.4

 
155.2

 
0.07
%
^Inner Beauty Salon and Suite LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041
 
65.0

 
64.4

 
65.8

 
0.03
%
^Atlantic Restaurant Associates LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041
 
262.5

 
259.9

 
263.0

 
0.13
%
^Costume World Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041
 
1,250.0

 
1,239.6

 
1,281.2

 
0.61
%
^Pecos Inn LLC dba Econo Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
4/28/2041
 
677.5

 
670.8

 
678.0

 
0.32
%
^North American Manufacturing Company
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/28/2026
 
160.0

 
153.1

 
153.6

 
0.07
%
^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/28/2026
 
9.0

 
8.6

 
7.2

 
—
%
^Knowledge First Inc dba Magic Years of Learning
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026
 
80.0

 
76.5

 
71.8

 
0.03
%
^Green Country Filter Manufacturing LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026
 
84.3

 
80.6

 
69.8

 
0.03
%
^Accent Comfort Services, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/26/2026
 
90.0

 
86.1

 
72.5

 
0.03
%
^Homecare Casa Rhoda 123 Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
4/26/2041
 
675.0

 
667.4

 
642.3

 
0.31
%

97
See accompanying notes to unaudited condensed consolidated financial statements.


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
^McIntosh Trail Management Services Organization Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041
 
425.0

 
420.8

 
434.9

 
0.21
%
^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/22/2041
 
250.0

 
247.5

 
234.1

 
0.11
%
^AAA Mill Direct, Inc. dba Carpet Mill Outlets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026
 
7.9

 
7.5

 
7.6

 
—
%
^Jande Graphics LLC dba FastSigns #103201
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/21/2026
 
56.0

 
53.6

 
45.1

 
0.02
%
^Miguel Fernando Borda, P.A. dba BGR Dental
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/15/2026
 
22.5

 
21.5

 
18.7

 
0.01
%
^LE & JS dba Laredo Mercado Y Carniceria
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/13/2026
 
20.0

 
19.1

 
16.1

 
0.01
%
^Sushiya Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/12/2026
 
87.5

 
83.8

 
73.6

 
0.04
%
^Sierra Foothill Cremation & Funeral Service, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/7/2026
 
53.0

 
50.8

 
42.8

 
0.02
%
^Waterfalls Quick Lube LLC and Veracruz Shabo LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041
 
271.3

 
269.3

 
270.3

 
0.13
%
^KNS Early Learning Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
4/6/2041
 
51.0

 
50.5

 
49.4

 
0.02
%
^Duke's Cleaners Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026
 
47.0

 
44.7

 
41.0

 
0.02
%
^Cameo Carter, MD A Professional Corporation
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026
 
75.0

 
71.3

 
60.0

 
0.03
%
^Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026
 
66.8

 
59.6

 
50.1

 
0.02
%
^Christian Soderquist dba Soderquist Plumbing and Heating LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
56.8

 
56.1

 
57.7

 
0.03
%
^Vehicle Safety Supply LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/31/2026
 
22.5

 
21.4

 
18.0

 
0.01
%
^Men of Steel Enterprises LLC and Vogelbacher Properties LLC
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
393.5

 
389.0

 
362.2

 
0.17
%
^Gill Express Inc and Blue Speed LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
518.0

 
512.1

 
505.3

 
0.24
%
^Dana A. Farley dba Independent Cabinets
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/31/2041
 
67.5

 
66.7

 
68.9

 
0.03
%
^NOSO Development, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
187.5

 
178.2

 
149.9

 
0.07
%
^Wyldewood Cellars, Inc.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041
 
986.8

 
985.8

 
936.7

 
0.45
%

98
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
22.5

 
21.6

 
21.7

 
0.01
%
^Beale Street Blues Company-West Palm Beach, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
93.8

 
89.1

 
77.1

 
0.04
%
^Tom Sawyer Country Restaurant LLC and AM 3208 LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/30/2041
 
257.5

 
254.6

 
258.5

 
0.12
%
^MTS Car Service LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/30/2026
 
10.5

 
10.0

 
8.4

 
—
%
^Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2%
 
3/29/2041
 
525.0

 
513.5

 
505.1

 
0.24
%
^Barrocas Gym LLC dba Snap Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026
 
22.5

 
21.1

 
19.1

 
0.01
%
^Vinmar Inc. dba Locanda Portofino
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026
 
81.3

 
77.2

 
65.0

 
0.03
%
^Lust for Life Footwear, LLC
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2026
 
375.0

 
356.4

 
299.9

 
0.14
%
^Marathon Engineering Corporation
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/28/2041
 
45.0

 
44.5

 
44.7

 
0.02
%
^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026
 
50.0

 
47.5

 
42.5

 
0.02
%
^ReNew Interior Surface Cleaning LLC dba Randy's Carpet Care and Upholstery
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/28/2026
 
12.4

 
11.8

 
11.5

 
0.01
%
^RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026
 
56.3

 
53.5

 
45.0

 
0.02
%
^Revolution Physical Therapy LLC dba Apex Network Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026
 
22.5

 
21.6

 
18.7

 
0.01
%
^Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/25/2026
 
125.0

 
118.8

 
106.7

 
0.05
%
^Lowgap Grocery & Grill LLC
 
General Merchandise Stores
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041
 
167.5

 
165.6

 
171.1

 
0.08
%
^ActKnowledge, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026
 
125.0

 
118.8

 
119.1

 
0.06
%
^International Construction Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041
 
50.0

 
49.5

 
48.4

 
0.02
%
^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/24/2026
 
50.0

 
47.5

 
46.2

 
0.02
%
^Acton Hardware LLC and Mark Allgood & Jamie Allgood
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/24/2041
 
498.6

 
492.9

 
472.6

 
0.23
%

99
See accompanying notes to unaudited condensed consolidated financial statements.


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
^The Youth Fountain LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/23/2026
 
47.5

 
45.2

 
38.0

 
0.02
%
^Magnation Corporation and Misha Family Trust
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/22/2041
 
101.3

 
100.4

 
103.7

 
0.05
%
^growth.period LLC and Potomac Recruiting LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026
 
156.3

 
148.5

 
124.9

 
0.06
%
^Precious Care LLC and Precious Care Management LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026
 
557.5

 
529.8

 
449.0

 
0.21
%
^Media Capital Partners, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/21/2026
 
22.5

 
21.4

 
18.0

 
0.01
%
^Pro Tech Technology LLC
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026
 
7.5

 
7.1

 
6.0

 
—
%
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041
 
80.8

 
79.8

 
81.5

 
0.04
%
^ERT Group Inc and Curt's Tools Inspection Inc
 
Support Activities for Mining
 
Term Loan
 
Prime plus 2.75%
 
3/18/2041
 
1,250.0

 
1,237.6

 
1,216.3

 
0.58
%
^Kekoa Enterprises Inc dba Signarama Sandy
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026
 
49.5

 
47.0

 
39.6

 
0.02
%
^Mariam Diner Inc dba Country Kitchen Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/18/2026
 
52.5

 
49.9

 
42.0

 
0.02
%
^Brian T Rice dba BD Logging
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
3/17/2026
 
15.8

 
15.0

 
13.5

 
0.01
%
^Auto and Property Insurance Solutions
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026
 
16.4

 
15.4

 
12.9

 
0.01
%
^Demand Printing Solutions Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026
 
21.8

 
20.7

 
19.5

 
0.01
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026
 
55.0

 
52.3

 
52.4

 
0.03
%
^Evergreen Pallet LLC and Evergreen Recycle LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026
 
1,039.3

 
988.2

 
882.4

 
0.42
%
^K Soles Corp dba Max Collections
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/16/2026
 
22.5

 
21.4

 
18.0

 
0.01
%
^R & D Enterprises Inc dba My Pool Man
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/15/2026
 
50.0

 
47.5

 
40.0

 
0.02
%
^HEWZ, LLC dba Hard Exercise Works
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/14/2026
 
22.5

 
21.4

 
18.0

 
0.01
%

100
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Mustafa Inc and Raouf Properties LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/14/2041
 
75.0

 
74.1

 
75.4

 
0.04
%
^Country Paint and Hardware Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
87.4

 
83.0

 
71.5

 
0.03
%
^Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
105.0

 
100.2

 
94.8

 
0.05
%
^ABCs & 123s Infant and Child Care Center LP
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
11.3

 
10.7

 
9.0

 
—
%
^Accuair Control Systems LLC dba Accuair Suspension
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
150.0

 
142.6

 
122.8

 
0.06
%
^Dupre Capital LLC dba Fastsigns
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/11/2026
 
58.4

 
55.5

 
46.7

 
0.02
%
^Magill Truck Line LLC and Jeff J. Ralls
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/11/2029
 
210.8

 
203.6

 
183.0

 
0.09
%
^Fayette Computer Consulting Company
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/10/2026
 
22.5

 
21.4

 
18.9

 
0.01
%
^State Painting & Decorating Co., Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/10/2026
 
103.8

 
98.6

 
83.0

 
0.04
%
^B.P.T.M. of NV LLC and Agentis Bros., LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/9/2041
 
525.0

 
519.0

 
513.8

 
0.25
%
^Step Up Academy of the Arts LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026
 
8.0

 
7.6

 
6.4

 
—
%
^A & A Auto Care LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026
 
12.2

 
11.5

 
11.0

 
0.01
%
^Faith Summit Supply Inc dba Summit Supply and Summit True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2026
 
22.5

 
21.4

 
19.4

 
0.01
%
^Swerve Salon LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/8/2026
 
79.0

 
75.1

 
63.2

 
0.03
%
^J & W Hardwood Flooring Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/7/2026
 
7.5

 
7.1

 
6.0

 
—
%
^Labmates LLC and POV Holdings LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/4/2041
 
109.3

 
108.0

 
111.6

 
0.05
%
^Hueston and Company CPA LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/4/2026
 
8.3

 
7.7

 
6.7

 
—
%
^Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/3/2026
 
50.0

 
47.5

 
46.3

 
0.02
%
^Miles of Smiles Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/2/2026
 
93.5

 
90.5

 
77.9

 
0.04
%
^Johnson & Dugan Insurance Services Corp
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
62.5

 
59.0

 
49.7

 
0.02
%

101
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Living Essentials HVAC Corp
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
15.0

 
14.2

 
12.1

 
0.01
%
^Consulting Solutions, Inc. and Mark Luciani
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
11.3

 
10.6

 
10.4

 
—
%
^Doxa Deo Inc dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
105.0

 
103.5

 
90.3

 
0.04
%
^The River Beas, LLC dba Subway and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041
 
135.9

 
134.1

 
136.7

 
0.07
%
^Drug Detection Laboratories, Inc. and Minh Tran
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
19.8

 
18.7

 
16.0

 
0.01
%
^Powerpits CS1, LLC dba Pita Pit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2026
 
18.8

 
17.7

 
15.8

 
0.01
%
^Blackstones Hairdressing LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026
 
52.0

 
49.4

 
42.0

 
0.02
%
^Aaradhya LLC dba Market Square Laundry
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/23/2026
 
80.0

 
75.5

 
63.5

 
0.03
%
^R-No-Landscaping LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026
 
8.3

 
7.8

 
6.7

 
—
%
^BER Enterprise 332 Inc dba Edible Arrangements
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/19/2026
 
22.5

 
21.3

 
18.1

 
0.01
%
^R & K Contracting Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
2/18/2026
 
15.8

 
15.0

 
14.5

 
0.01
%
^Pacific Coast Medical Group LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/17/2026
 
245.0

 
231.3

 
231.9

 
0.11
%
^B for Blonde, LLC dba Blo Blow Dry Bar
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026
 
62.0

 
59.3

 
50.0

 
0.02
%
^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2029
 
310.3

 
298.6

 
272.7

 
0.13
%
^Ei3 Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/12/2026
 
326.9

 
308.6

 
309.5

 
0.15
%
^Jersey Shore Marina & Boat Sales, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/12/2041
 
625.0

 
617.7

 
638.2

 
0.31
%
^Base USA, Inc.
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
2/2/2026
 
50.0

 
47.2

 
47.4

 
0.02
%
^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026
 
105.0

 
98.6

 
98.9

 
0.05
%
^Zouk Ltd dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/29/2026
 
22.5

 
21.1

 
21.2

 
0.01
%

102
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Tammy Lavertue
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026
 
11.3

 
10.5

 
10.2

 
—
%
^SuzyQue's LLC dba SuzyQue's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026
 
22.5

 
21.2

 
21.2

 
0.01
%
^Wildflour Bakery & Cafe LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/28/2026
 
62.5

 
58.6

 
57.2

 
0.03
%
^New Image Building Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026
 
83.1

 
78.0

 
69.1

 
0.03
%
^Oak Tree Storage LLC
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2026
 
78.8

 
73.8

 
63.4

 
0.03
%
^Gendron Funeral and Cremation Services, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/11/2041
 
112.5

 
109.4

 
113.0

 
0.05
%
^Dolarian Realty LLC and OV's Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/5/2041
 
67.8

 
66.9

 
69.1

 
0.03
%
^Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025
 
112.5

 
104.8

 
91.8

 
0.04
%
^MCF Forte LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/29/2025
 
18.8

 
17.5

 
14.9

 
0.01
%
^Panditos LLC dba White Lotus Home
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025
 
15.9

 
14.8

 
12.5

 
0.01
%
^Bright Dialysis LLC and Ft Pierce Kidney Care LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2025
 
1,250.0

 
1,164.4

 
982.9

 
0.47
%
^V2 Tango LLC dba Palette 22
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025
 
250.0

 
232.9

 
202.5

 
0.10
%
^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040
 
102.5

 
100.8

 
100.7

 
0.05
%
^800 on the Trax LLC and Matrix Z LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2040
 
240.0

 
237.2

 
235.1

 
0.11
%
^Optima Health Care Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2025
 
62.5

 
58.2

 
58.4

 
0.03
%
^B&B Organics LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040
 
375.0

 
368.9

 
381.0

 
0.18
%
^Joyce Outdoor Advertising Chicago LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/22/2040
 
300.0

 
297.0

 
292.6

 
0.14
%
^The LAX Shop Inc
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2025
 
125.0

 
91.4

 
91.6

 
0.04
%
^Premier Athletic Center of Ohio Inc. and Gates Investments and Wade Gates
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2028
 
882.0

 
840.0

 
848.3

 
0.41
%

103
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Hattingh Incorporated dba Prosthetic Care Facility
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2025
 
18.0

 
16.8

 
14.9

 
0.01
%
^G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040
 
1,025.0

 
1,008.3

 
1,041.3

 
0.50
%
^Trip Consultants U.S.A. Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025
 
175.0

 
163.0

 
137.1

 
0.07
%
^Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025
 
73.0

 
69.8

 
60.5

 
0.03
%
^Accent Tag and Label Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040
 
665.8

 
652.2

 
649.1

 
0.31
%
^Abbondanza Market LLC dba Hampton Falls Village Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025
 
73.8

 
62.7

 
54.7

 
0.03
%
^Capital Scrap Metal LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/18/2025
 
36.0

 
33.5

 
28.7

 
0.01
%
^Labmates LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
12/18/2040
 
162.5

 
159.9

 
165.1

 
0.08
%
^Sourceco Limited Liability Company
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025
 
62.5

 
58.3

 
51.0

 
0.02
%
^Mustafa Inc dba Adiba Grocery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025
 
103.8

 
96.7

 
96.2

 
0.05
%
^Learning Skills LLC and Christopher Shrope
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2025
 
10.8

 
10.1

 
8.5

 
—
%
^New York Home Health Care Equipment, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025
 
875.0

 
817.8

 
801.9

 
0.38
%
^Moments to Remember USA LLC dba Retain Loyalty
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025
 
75.0

 
70.0

 
65.3

 
0.03
%
^Swalm Sreet LLC and New York Home Health Care Equipment LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/16/2040
 
375.0

 
370.1

 
376.1

 
0.18
%
^JAG Unit 1, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025
 
250.0

 
233.3

 
196.2

 
0.09
%
^D&G Capital LLC dba Miami Grill 277
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2025
 
83.8

 
87.2

 
80.6

 
0.04
%
^Abitino's JFK LLC dba Abitino's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/16/2022
 
125.0

 
113.8

 
100.8

 
0.05
%
^SDA Holdings LLC and Les Cheveux Salon Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2040
 
428.8

 
421.1

 
412.2

 
0.20
%
^Evans & Paul LLC and E&P Holdings I LLC
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2025
 
125.0

 
116.4

 
101.5

 
0.05
%

104
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Basista Family Limited Partnership and UPE, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/14/2040
 
342.5

 
336.9

 
333.8

 
0.16
%
^DC Enterprises Ltd. dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/14/2025
 
22.5

 
21.0

 
19.9

 
0.01
%
^Tri-State Remodeling & Investments, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025
 
15.9

 
14.8

 
14.3

 
0.01
%
^Alexandra Afentoulides dba Vi's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2040
 
46.3

 
45.5

 
47.0

 
0.02
%
^AGR Foodmart Inc dba Nashua Road Mobil
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025
 
22.5

 
21.0

 
19.9

 
0.01
%
^ENI Inc. dba ENI Group, Inc
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2025
 
36.0

 
33.5

 
29.7

 
0.01
%
^Cares, Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/10/2025
 
7.5

 
7.0

 
6.9

 
—
%
^Custom Exteriors, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/9/2025
 
100.0

 
93.2

 
81.5

 
0.04
%
^Sushiya, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/8/2025
 
108.8

 
101.3

 
88.9

 
0.04
%
^My Jewels, LLC dba The UPS Store #6712
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/7/2025
 
56.3

 
33.2

 
27.9

 
0.01
%
^Food & Fuel Company LLC dba Lowery Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040
 
122.5

 
120.5

 
124.2

 
0.06
%
^Blue Ox Trucking Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2025
 
12.3

 
11.5

 
11.5

 
0.01
%
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040
 
502.5

 
494.3

 
497.1

 
0.24
%
^American Campgrounds LLC dba Whit's End Campground
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/4/2040
 
293.0

 
288.2

 
290.4

 
0.14
%
^Tariq, LLC dba 76 Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/2/2040
 
375.0

 
368.9

 
371.4

 
0.18
%
^401 JJS, Corp and G. Randazzo's Trattoria Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/1/2040
 
52.8

 
52.1

 
51.6

 
0.02
%
^Delta Aggregate, LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025
 
100.0

 
95.4

 
95.7

 
0.05
%
^Block and Grinder LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025
 
200.0

 
187.5

 
186.6

 
0.09
%
^Hurshell Leon Dutton dba High Jump Party Rentals
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025
 
17.6

 
16.2

 
16.0

 
0.01
%
^Japp Business Inc dba Pick and Eat and Japp Drink Corp.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025
 
125.0

 
115.6

 
102.7

 
0.05
%

105
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Smokeyard Inc dba Smokeyard BBQ and Chop Shop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/30/2025
 
125.0

 
115.6

 
99.6

 
0.05
%
^Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/25/2040
 
146.3

 
143.9

 
148.4

 
0.07
%
^State Painting and Decorating Co Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025
 
100.0

 
92.5

 
77.8

 
0.04
%
^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025
 
22.5

 
20.7

 
17.4

 
0.01
%
^DWeb Studio, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2025
 
11.3

 
10.4

 
8.7

 
—
%
^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/23/2040
 
750.0

 
747.7

 
764.6

 
0.37
%
^Play and Learn Child Care and School Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
11/23/2025
 
11.1

 
10.3

 
10.3

 
—
%
^Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025
 
89.0

 
83.4

 
71.7

 
0.03
%
^Haven Hospitality Group Inc. dba Haven Gastropub
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2025
 
132.5

 
122.6

 
105.2

 
0.05
%
^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/20/2040
 
244.4

 
240.0

 
224.7

 
0.11
%
^S.B.B. Enterprises Inc dba Williamston Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/19/2040
 
108.8

 
106.6

 
100.1

 
0.05
%
^Key Pix Productions Inc. dba Air Bud Entertainment
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2040
 
839.8

 
824.8

 
851.8

 
0.41
%
^Holloway & CO. P.L.L.C.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/16/2025
 
75.0

 
69.4

 
69.5

 
0.03
%
^RDT Enterprises, L.L.C.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/12/2025
 
22.5

 
20.8

 
19.5

 
0.01
%
^E.S.F.P. LLC dba Volusia Van and Storage
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/11/2025
 
91.3

 
84.4

 
72.8

 
0.03
%
^Green Life Lawnscapes LLC dba Green Life Lawn Care
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/6/2025
 
127.3

 
117.7

 
114.7

 
0.05
%
^Joseph Nich and Tina M. Nich dba Vic's Greenhouses
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025
 
62.5

 
58.2

 
58.3

 
0.03
%
^Jumbomarkets Inc dba Rines Jumbomarkets
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/4/2025
 
306.3

 
283.3

 
274.8

 
0.13
%
^Bisson Transportation Inc dba I & R Associates and Document Secutiry
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
10/30/2025
 
22.5

 
20.7

 
19.4

 
0.01
%

106
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Top Cat Ready Mix, LLC, Ples Investments LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025
 
711.3

 
653.6

 
572.5

 
0.27
%
^L.M. Jury Enterprises, Inc dba Midwest Monograms
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
10/28/2025
 
77.0

 
70.6

 
60.8

 
0.03
%
^Windsor Direct Distribution LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025
 
14.3

 
13.0

 
11.0

 
0.01
%
^Financial Network Recovery
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/26/2025
 
40.0

 
36.8

 
30.9

 
0.01
%
^Insurance Fire & Water Restorations, LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025
 
22.5

 
20.7

 
19.6

 
0.01
%
^Jacksonville Beauty Institute Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
10/23/2025
 
50.0

 
45.9

 
38.6

 
0.02
%
^Werthan Packaging Inc.
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025
 
1,162.5

 
1,104.0

 
1,030.3

 
0.49
%
^Tannehill Enterprises Inc dba Hobbytown USA Folsom
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
10/14/2025
 
87.4

 
80.2

 
67.5

 
0.03
%
^ADMO Inc dba Mid States Equipment
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/8/2025
 
22.5

 
20.7

 
17.9

 
0.01
%
^SCJEN Management Inc dba Bowl of Heaven
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
71.3

 
65.7

 
55.2

 
0.03
%
^Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
125.0

 
114.0

 
95.8

 
0.05
%
^Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/30/2028
 
66.5

 
62.4

 
60.4

 
0.03
%
^Recycling Consultants, Inc. and Prairie State Salvage and Recycling
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027
 
767.5

 
714.8

 
643.3

 
0.31
%
^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2040
 
143.0

 
140.0

 
143.9

 
0.07
%
^R.H. Hummer Jr., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
375.0

 
354.3

 
338.4

 
0.16
%
^Bat Bridge Investments Inc dba Kalologie 360 Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
85.5

 
79.5

 
66.8

 
0.03
%
^Binky's Vapes LLC
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2025
 
22.5

 
20.5

 
17.2

 
0.01
%
^Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/29/2040
 
234.8

 
231.0

 
235.0

 
0.11
%
^Greensward of Marco Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040
 
87.5

 
85.7

 
84.4

 
0.04
%

107
See accompanying notes to unaudited condensed consolidated financial statements.


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
^RIM Investments LLC and RIM Architects LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/28/2040
 
399.0

 
390.7

 
383.0

 
0.18
%
^The Grasso Companies LLC and Grasso Pavement Maintenance LLC
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
9/28/2025
 
518.8

 
469.8

 
469.2

 
0.22
%
^South Towne Dental Center, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025
 
50.0

 
45.6

 
45.7

 
0.02
%
^Hemingway Custom Cabinetry LLC
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025
 
220.0

 
200.6

 
172.8

 
0.08
%
^Daniel W. Stark dba Mountain Valley Lodge and RV Park
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040
 
13.5

 
13.2

 
13.6

 
0.01
%
^Sandlot Ventures LLC and Sandbox Ventures LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040
 
442.5

 
433.9

 
418.9

 
0.20
%
^Yachting Solutions LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/25/2040
 
962.5

 
942.4

 
908.0

 
0.43
%
^Prestigious LifeCare for Seniors LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2025
 
9.8

 
9.0

 
8.2

 
—
%
^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040
 
625.0

 
611.9

 
608.5

 
0.29
%
^Hagerstown Muffler, Inc. and JMS Muffler, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/24/2040
 
327.5

 
320.7

 
331.0

 
0.16
%
^J.R. Wheeler Corporation dba Structurz Exhibits and Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2025
 
21.0

 
19.2

 
19.2

 
0.01
%
^Rutledge Enterprises Inc dba BLC Property Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/23/2040
 
62.5

 
60.7

 
60.4

 
0.03
%
^Finish Strong Inc dba FASTSIGNS St Peters
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025
 
50.0

 
45.6

 
38.3

 
0.02
%
^J3K LLC dba Ronan True Value Hardware
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025
 
152.5

 
139.1

 
116.9

 
0.06
%
^Stormrider Inc dba Shirley's Stormrider Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/23/2025
 
67.5

 
62.6

 
52.6

 
0.03
%
^Frozen Treats of Hollywood FL, LLC dba Sub Zero Ice Cream
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/22/2025
 
15.8

 
14.4

 
12.8

 
0.01
%
^Nova Solutions Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040
 
320.0

 
313.3

 
311.9

 
0.15
%
^Pine Belt Wood Products LLC
 
Forestry and Logging
 
Term Loan
 
Prime plus 2.75%
 
9/22/2040
 
163.8

 
160.3

 
146.9

 
0.07
%
^IIoka Inc dba New Cloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025
 
665.0

 
609.3

 
512.1

 
0.24
%

108
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/21/2025
 
50.0

 
45.6

 
40.6

 
0.02
%
^MiJoy Inc dba Imo's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025
 
8.3

 
7.5

 
6.3

 
—
%
^Vanderhoof LLC dba Soxfords
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/18/2025
 
15.9

 
14.5

 
12.2

 
0.01
%
^Naeem Khan LTD
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/17/2025
 
125.0

 
114.0

 
95.8

 
0.05
%
^Import Car Connection Inc dba Car Connection
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/16/2040
 
407.5

 
399.0

 
406.5

 
0.19
%
^FirstVitals Health and Wellness Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/15/2025
 
150.0

 
136.8

 
114.9

 
0.05
%
^Johnson Carwash LLC and Johnson Petroleum LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/14/2040
 
340.0

 
334.8

 
345.1

 
0.17
%
^Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2025
 
62.5

 
57.0

 
56.3

 
0.03
%
^Veliu LLC dba FASTSIGNS #15901
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/10/2025
 
50.0

 
46.2

 
40.0

 
0.02
%
^B and A Friction Materials Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/9/2025
 
102.5

 
92.7

 
77.9

 
0.04
%
^Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/8/2040
 
140.0

 
137.1

 
141.5

 
0.07
%
^AIG Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040
 
363.8

 
356.1

 
338.8

 
0.16
%
^Empower Autism Academy
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/4/2040
 
685.0

 
670.7

 
692.4

 
0.33
%
^Higher Grounds Community Coffeehouse, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/2/2025
 
8.3

 
7.5

 
6.6

 
—
%
^Delray Scrap Recycling LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025
 
22.5

 
20.1

 
16.9

 
0.01
%
^The Camera House Inc
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2025
 
1,250.0

 
1,131.6

 
1,036.9

 
0.50
%
^LAN Doctors Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025
 
81.3

 
73.6

 
66.8

 
0.03
%
^Elite Institute LLC dba Huntington Learning Center
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025
 
15.0

 
13.7

 
11.6

 
0.01
%
^Zephyr Seven Series LLC dba 18/8 Fine Men's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025
 
81.3

 
76.2

 
65.7

 
0.03
%
^J and K Fitness L.L.C. dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2041
 
93.8

 
92.7

 
93.5

 
0.04
%

109
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Trading Group 3 Inc
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/28/2025
 
50.0

 
45.3

 
38.0

 
0.02
%
^B and J Catering Inc dba Culinary Solutions
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/27/2040
 
547.5

 
540.3

 
523.4

 
0.25
%
^God Be Glorified Inc dba GBG Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
8/20/2025
 
53.0

 
48.0

 
40.3

 
0.02
%
^3000 CSI Property LLC and Consulting Solutions Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/20/2040
 
137.5

 
134.4

 
136.7

 
0.07
%
^GDP Gourmet LLC dba Joe and John's Pizza Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/19/2040
 
145.0

 
141.7

 
140.1

 
0.07
%
^Screenmobile Management Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025
 
47.0

 
42.5

 
36.1

 
0.02
%
^Gold Jet Corp.
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
8/14/2025
 
68.3

 
65.3

 
59.2

 
0.03
%
^SKJ Inc dba Subway
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/13/2025
 
84.8

 
76.8

 
65.5

 
0.03
%
^LP Industries Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025
 
125.0

 
114.5

 
107.0

 
0.05
%
^Advanced Machine & Technology, Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/29/2025
 
90.3

 
81.1

 
74.8

 
0.04
%
^Pauley Tree and Lawn Care Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
7/28/2025
 
65.8

 
59.2

 
53.0

 
0.03
%
^Beale Street Blues Company-West Palm Beach LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025
 
66.3

 
59.5

 
52.2

 
0.02
%
^Forever & Always of Naples Inc dba Island Animal Hospital
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2025
 
107.5

 
96.6

 
88.0

 
0.04
%
^C& D Medical of Naples, Inc and Forever & Always of Naples, Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/24/2040
 
135.0

 
131.8

 
123.2

 
0.06
%
^Pooh's Corner Realty LLC and Pooh's Corner Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
7/23/2040
 
103.8

 
101.4

 
103.8

 
0.05
%
^Smart Artists Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
7/23/2025
 
22.5

 
20.2

 
17.0

 
0.01
%
^Free Ion Advisors LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
7/21/2025
 
64.3

 
57.7

 
48.5

 
0.02
%
^Murrayville Donuts, Inc dba Dunkin' Donuts
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
7/15/2040
 
344.5

 
340.4

 
329.4

 
0.16
%
^Union 2 LLC dba The Standard
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/10/2025
 
91.5

 
85.9

 
79.1

 
0.04
%

110
See accompanying notes to unaudited condensed consolidated financial statements.


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
^The Smile Place LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040
 
283.9

 
276.6

 
282.4

 
0.14
%
^BJ's Tavern LLC and BJ's Cabana Bar Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040
 
212.5

 
207.1

 
210.9

 
0.10
%
^Jonathan E Nichols and Nichols Fire and Security LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025
 
75.0

 
66.9

 
65.2

 
0.03
%
^Thrifty Market, Inc. dba Thrifty Foods
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030
 
262.5

 
246.5

 
231.3

 
0.11
%
^All About Smiles P A
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040
 
237.7

 
231.6

 
236.4

 
0.11
%
^Danny V, LLC dba Hugo's Taproom
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040
 
54.0

 
50.1

 
49.0

 
0.02
%
^Anglin Cultured Stone Products LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025
 
281.8

 
251.3

 
232.6

 
0.11
%
^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025
 
337.5

 
301.0

 
273.0

 
0.13
%
^Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/29/2030
 
291.9

 
274.4

 
261.4

 
0.13
%
^Myclean Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025
 
15.9

 
14.2

 
12.7

 
0.01
%
^E & G Enterprises LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025
 
22.5

 
20.1

 
18.0

 
0.01
%
^SofRep, Inc dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025
 
66.3

 
59.1

 
52.9

 
0.03
%
^Jihan Inc dba ARCO AM/PM and Diana Inc dba Diana's Recycling
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040
 
380.0

 
370.3

 
374.9

 
0.18
%
^TJU-DGT Inc dba The Lorenz Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029
 
20.6

 
19.2

 
19.5

 
0.01
%
^CEM Autobody LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040
 
135.5

 
132.0

 
132.6

 
0.06
%
^Wolf Enviro Interests, LLC and Enviromax Services Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040
 
246.5

 
240.2

 
234.0

 
0.11
%
^Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.28%
 
6/25/2040
 
1,207.5

 
1,187.4

 
1,190.9

 
0.57
%
^Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025
 
22.5

 
20.1

 
18.8

 
0.01
%
^Amboy Group, LLC dba Tommy's Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025
 
454.0

 
406.2

 
410.1

 
0.20
%
^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/23/2040
 
551.8

 
537.6

 
561.8

 
0.27
%
^RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025
 
22.5

 
19.9

 
17.8

 
0.01
%

111
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Real Help LLC dba Real Help Decorative Concrete
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025
 
53.1

 
47.4

 
47.1

 
0.02
%
^PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025
 
14.9

 
13.3

 
11.9

 
0.01
%
^KRN Logistics, LLC,Newsome Trucking, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025
 
543.5

 
484.8

 
458.5

 
0.22
%
^Inverted Healthcare Staffing of Florida LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025
 
61.3

 
54.7

 
49.0

 
0.02
%
^Square Deal Siding Company,LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025
 
22.5

 
20.4

 
20.6

 
0.01
%
^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/17/2025
 
437.5

 
390.2

 
390.4

 
0.19
%
^AM PM Properties, LLC and AM PM Willington, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040
 
87.1

 
84.6

 
87.5

 
0.04
%
^Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025
 
130.5

 
117.0

 
104.7

 
0.05
%
^Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040
 
338.8

 
135.2

 
128.3

 
0.06
%
^Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025
 
125.0

 
108.7

 
97.3

 
0.05
%
^Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040
 
290.3

 
282.8

 
295.5

 
0.14
%
^Eldredge Tavern LLC dba Gonyea's Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040
 
56.3

 
54.8

 
57.3

 
0.03
%
^Nicor LLC dba Fibrenew Sacramento
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/5/2022
 
13.8

 
11.4

 
10.2

 
—
%
^Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025
 
16.1

 
14.0

 
12.5

 
0.01
%
^ViAr Visual Communications, Inc. dba Fastsigns 281701
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025
 
62.0

 
55.3

 
50.4

 
0.02
%
^Video Vault & Tanning LLC and Mosaic Salon LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/4/2040
 
90.5

 
88.4

 
92.3

 
0.04
%
^Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025
 
125.0

 
111.5

 
100.4

 
0.05
%
^DTM Parts Supply Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/2/2025
 
62.8

 
56.0

 
50.1

 
0.02
%
^XCESSIVE THROTTLE, INC dba Jake's Roadhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025
 
8.3

 
7.3

 
6.5

 
—
%
^God is Good LLC dba BurgerFi
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025
 
67.3

 
16.6

 
16.7

 
0.01
%

112
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025
 
9.0

 
8.0

 
7.3

 
—
%
^Pen Tex Inc dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025
 
22.0

 
19.5

 
17.5

 
0.01
%
^Douglas Posey and Sally Watkinson dba Audrey's Farmhouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2040
 
174.1

 
169.4

 
173.9

 
0.08
%
^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/15/2025
 
717.3

 
638.0

 
581.7

 
0.28
%
^15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040
 
257.1

 
250.1

 
247.5

 
0.12
%
^E-Z Box Storage, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/11/2025
 
89.3

 
73.3

 
74.0

 
0.04
%
^Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025
 
65.0

 
57.5

 
51.8

 
0.02
%
^George S Cochran DDS Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025
 
130.0

 
115.5

 
103.6

 
0.05
%
^South Park Properties LLC and Midlothian Hardware LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040
 
170.5

 
164.8

 
172.1

 
0.08
%
^Matthew Taylor and Landon Farm LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040
 
100.0

 
98.0

 
93.7

 
0.04
%
^Cares Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/1/2040
 
81.9

 
78.8

 
82.4

 
0.04
%
^RDRhonehouse ENT. LLC dba Chill Skinz
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025
 
88.9

 
79.8

 
71.5

 
0.03
%
^Orchid Enterprises Inc dba Assisting Hands of Sussex County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2025
 
15.0

 
13.2

 
11.8

 
0.01
%
^Ragazza Restaurant Group, Inc. dba Bambolina
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025
 
22.5

 
19.8

 
18.3

 
0.01
%
^Diamond Solutions LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025
 
22.5

 
19.3

 
17.3

 
0.01
%
^Giacchino Maritime Consultants Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/17/2025
 
22.5

 
19.8

 
17.7

 
0.01
%
^Sound Coaching Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
4/14/2025
 
44.4

 
39.0

 
34.9

 
0.02
%
^Carolina Beefs, LLC dba Beef O'Brady's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/13/2025
 
19.5

 
17.1

 
15.3

 
0.01
%
^Faramarz Nikourazm dba Car Clinic Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/3/2040
 
73.8

 
71.5

 
72.3

 
0.03
%

113
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040
 
758.3

 
737.4

 
723.8

 
0.35
%
^T and B Boots Inc dba Takkens
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025
 
807.8

 
705.6

 
688.1

 
0.33
%
^HAVANA CENTRAL NJ1, LLC dba Havana Central
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025
 
250.0

 
225.0

 
225.6

 
0.11
%
^Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040
 
428.8

 
415.7

 
406.4

 
0.19
%
^Copper Beech Financial Group LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025
 
125.0

 
109.0

 
103.4

 
0.05
%
^Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025
 
90.0

 
83.7

 
84.5

 
0.04
%
^Sunset Marine Resort LLC and GoXpeditions LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040
 
301.8

 
292.6

 
305.6

 
0.15
%
^Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025
 
106.5

 
92.9

 
89.1

 
0.04
%
^South Florida Air Conditioning and Refrigeration Corp.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040
 
155.5

 
150.8

 
155.8

 
0.07
%
^Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040
 
1,040.3

 
1,004.8

 
982.4

 
0.47
%
^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025
 
1,238.3

 
1,079.5

 
965.3

 
0.46
%
^Geo Los Angeles LLC dba Geo Film Group
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2025
 
130.0

 
113.4

 
108.2

 
0.05
%
^Joyce Outdoor Advertising NJ LLC and Joyce Outdoor Advertising LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2040
 
54.0

 
52.4

 
54.2

 
0.03
%
^Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025
 
22.5

 
19.6

 
17.5

 
0.01
%
^Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/25/2040
 
810.0

 
785.4

 
816.3

 
0.39
%
^Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2025
 
12.0

 
10.5

 
9.4

 
—
%
^Shelton Incorporated dba Mrs. Winners
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040
 
112.5

 
109.1

 
113.6

 
0.05
%
^Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040
 
42.9

 
41.6

 
41.9

 
0.02
%
^R & R Security and Investigations Inc dba Pardners Lake Buchanan
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2040
 
85.4

 
82.9

 
86.5

 
0.04
%

114
See accompanying notes to unaudited condensed consolidated financial statements.


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
^MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040
 
160.7

 
155.8

 
156.1

 
0.07
%
^Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040
 
91.3

 
88.5

 
89.8

 
0.04
%
^BND Sebastian Limited Liability Company and Sebastian Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040
 
172.5

 
167.3

 
171.6

 
0.08
%
^Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040
 
191.8

 
185.9

 
186.2

 
0.09
%
^Luigi's on Main LLC and Luigi's Main Street Pizza Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/4/2025
 
11.3

 
9.8

 
9.9

 
—
%
^Calhoun Satellite Communications Inc and Transmission Solutions Group
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025
 
952.8

 
825.3

 
763.2

 
0.37
%
^Road to Sedona Inc dba Thirteen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025
 
56.6

 
49.0

 
44.3

 
0.02
%
^Baystate Firearms and Training, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025
 
63.4

 
54.7

 
49.3

 
0.02
%
^Kingseal LLC dba Desoto Health and Rehab Center
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
2/26/2040
 
1,250.0

 
1,210.1

 
1,263.9

 
0.60
%
^Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025
 
66.2

 
57.3

 
57.8

 
0.03
%
^Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025
 
12.5

 
10.8

 
9.6

 
—
%
^Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/19/2040
 
61.8

 
59.7

 
59.6

 
0.03
%
^Triangle Trash LLC dba Bin There Dump That
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025
 
74.4

 
64.3

 
60.6

 
0.03
%
^Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2040
 
171.6

 
166.3

 
166.0

 
0.08
%
^740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040
 
492.5

 
476.7

 
498.0

 
0.24
%
^Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040
 
66.3

 
64.1

 
64.8

 
0.03
%
^DuCharme Realty LLC and DuCharme Enterprises LLC
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040
 
225.1

 
217.9

 
215.7

 
0.10
%
^Limameno LLC dba Sal's Italian Ristorante
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025
 
83.3

 
71.4

 
65.4

 
0.03
%
^Palmabak Inc dba Mami Nora's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/22/2025
 
21.5

 
15.9

 
16.1

 
0.01
%

115
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Jung Design Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/20/2022
 
8.4

 
6.5

 
5.8

 
—
%
^Grand Blanc Lanes, Inc. and H, H and H, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/31/2039
 
133.0

 
128.5

 
133.0

 
0.06
%
^Bear Creek Entertainment, LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024
 
106.3

 
90.7

 
91.4

 
0.04
%
^Evans and Paul LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024
 
223.8

 
190.5

 
188.1

 
0.09
%
^FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2039
 
245.5

 
238.2

 
234.6

 
0.11
%
^First Prevention and Dialysis Center, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/30/2024
 
273.3

 
248.4

 
241.4

 
0.12
%
^Bowlerama Inc
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2039
 
1,202.5

 
1,161.9

 
1,213.0

 
0.58
%
^401 JJS Corporation and G. Randazzo Corporation
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039
 
473.5

 
460.9

 
473.5

 
0.23
%
^The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039
 
530.3

 
511.6

 
500.9

 
0.24
%
^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039
 
500.0

 
482.4

 
503.6

 
0.24
%
^Carolina Flicks Inc dba The Howell Theater
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
12/23/2032
 
163.3

 
153.0

 
151.0

 
0.07
%
^Atlantis of Daytona LLC and Ocean Club Sportswear Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/23/2039
 
240.0

 
214.8

 
224.3

 
0.11
%
^Beale Street Blues Company-West Palm Beach, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/22/2024
 
187.5

 
159.6

 
148.4

 
0.07
%
^MM and M Management Inc dba Pizza Artista
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/19/2025
 
46.3

 
40.4

 
36.7

 
0.02
%
^The Jewelers Inc. dba The Jewelers of Las Vegas
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
12/19/2024
 
1,250.0

 
1,063.3

 
959.5

 
0.46
%
^B.S. Ventures LLC dba Dink's Market
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/19/2039
 
53.8

 
51.9

 
54.1

 
0.03
%
^B & W Towing, LLC and Boychucks Fuel LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2039
 
164.5

 
160.0

 
159.4

 
0.08
%
^All American Games, LLC and Sportslink - The Game, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/10/2024
 
400.0

 
340.4

 
318.1

 
0.15
%

116
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Kemmer LLC and Apples Tree Top Liquors LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/4/2039
 
138.4

 
133.5

 
131.8

 
0.06
%
^Trading Group 3, Inc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024
 
22.5

 
19.0

 
17.0

 
0.01
%
^The Red Pill Management, Inc. dba UFC Gym Matthews
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
11/26/2024
 
54.3

 
46.6

 
43.2

 
0.02
%
^Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039
 
148.8

 
143.3

 
143.9

 
0.07
%
^DeRidder Chiropractic LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024
 
13.2

 
11.1

 
11.2

 
0.01
%
^Modern Manhattan LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024
 
220.0

 
185.8

 
167.8

 
0.08
%
^Stormrider Inc dba Shirley's Stormrider, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2024
 
150.0

 
129.1

 
115.3

 
0.06
%
^Meridian Hotels, LLC dba Best Western Jonesboro
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
11/25/2039
 
228.0

 
220.6

 
230.3

 
0.11
%
^Legacy Estate Planning Inc dba American Casket Enterprises
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024
 
42.0

 
35.5

 
31.7

 
0.02
%
^J&D Resources, LLC dba Aqua Science
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/21/2024
 
767.9

 
641.4

 
582.5

 
0.28
%
^DC Real LLC and DC Enterprises LTD dba Lakeview True Value
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
11/20/2039
 
119.4

 
115.5

 
118.5

 
0.06
%
^MLM Enterprises LLC and Demand Printing Solutions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/18/2024
 
70.5

 
59.5

 
57.5

 
0.03
%
^JEJE Realty LLC and La Familia Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/10/2039
 
205.8

 
197.1

 
198.2

 
0.09
%
^Joey O's LLC and Jennifer Olszewski
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/7/2024
 
13.1

 
0.9

 
0.8

 
—
%
^Heartland American Properties LLC and Skaggs RV Outlet LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2039
 
479.0

 
460.6

 
471.0

 
0.23
%
^Golden Transaction Corporation dba Bleh Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/30/2039
 
156.7

 
150.7

 
155.4

 
0.07
%
^Seelan Inc dba Candleridge Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
10/27/2039
 
90.5

 
87.0

 
87.3

 
0.04
%
^185 Summerfield Inc and Valcon Contracting Corp
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039
 
162.3

 
156.0

 
160.5

 
0.08
%
^Navdeep B Martins and Busy Bubbles LLC dba Wishy Washy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/24/2039
 
89.0

 
85.7

 
84.6

 
0.04
%
^3 F Management LLC and ATC Port Charlotte LLC dba Around The Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/17/2024
 
131.3

 
109.9

 
102.5

 
0.05
%

117
See accompanying notes to unaudited condensed consolidated financial statements.


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
^One Hour Jewelry Repair Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/14/2024
 
20.6

 
17.2

 
15.4

 
0.01
%
^DNT Storage and Properties LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039
 
101.8

 
97.8

 
101.0

 
0.05
%
^Capitol Waste and Recycling Services LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024
 
257.8

 
215.8

 
202.7

 
0.10
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/10/2024
 
187.5

 
157.1

 
145.6

 
0.07
%
^Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/10/2039
 
1,250.0

 
1,216.5

 
1,270.0

 
0.61
%
^Boilermaker Industries LLC dba PostNet
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/9/2024
 
18.8

 
5.7

 
5.8

 
—
%
^Smith Spinal Care Center P.C. and James C. Smith
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2039
 
60.0

 
57.7

 
58.8

 
0.03
%
^Doctors Express Management of Central Texas LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/8/2024
 
105.0

 
77.8

 
76.5

 
0.04
%
^Michael Rey Jr. and Lynn J. Williams and GIG Petcare dba Hickory
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/3/2039
 
126.9

 
120.2

 
123.6

 
0.06
%
^Sumad LLC dba BrightStar Care of Encinitas
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
10/2/2024
 
92.5

 
44.5

 
44.9

 
0.02
%
^Roccos LLC and Sullo Pantalone Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039
 
255.8

 
245.5

 
244.8

 
0.12
%
^Keller Holdings LLC and David H Keller III and Carie C Keller
 
Scenic and Sightseeing Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2039
 
100.0

 
96.0

 
99.7

 
0.05
%
^Orange County Insurance Brokerage Inc dba Beaty Insurance Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039
 
325.1

 
313.1

 
326.7

 
0.16
%
^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/29/2039
 
513.3

 
495.1

 
516.6

 
0.25
%
^Keys Phase One LLC dba The Grand Guesthouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039
 
736.3

 
706.7

 
725.2

 
0.35
%
^Gordon E Rogers dba Stonehouse Motor Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039
 
57.5

 
55.2

 
57.6

 
0.03
%
^Auto Shine Carwash Inc and AKM R. Hossain and Jessica F. Masud
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/26/2024
 
22.5

 
18.7

 
17.2

 
0.01
%
^Colts V LLC and Nowatzke Service Center, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/26/2039
 
601.8

 
578.6

 
591.7

 
0.28
%
^North Columbia LLC and Loop Liquor and Convenience Store LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039
 
159.3

 
152.9

 
156.6

 
0.07
%
^6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/24/2039
 
452.5

 
435.8

 
422.4

 
0.20
%

118
See accompanying notes to unaudited condensed consolidated financial statements.


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
^R A Johnson Inc dba Rick Johnson Auto and Tire
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/23/2039
 
301.3

 
289.2

 
301.8

 
0.14
%
^Andrene's LLC dba Andrene's Caribbean Soul Food Carry Out
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/23/2024
 
37.8

 
29.5

 
26.4

 
0.01
%
^Play and Stay LLC dba Zoom Room Tinton Falls
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/18/2024
 
42.1

 
35.4

 
31.6

 
0.02
%
^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2039
 
145.5

 
139.7

 
145.7

 
0.07
%
^Modern Leather Goods Repair Shop Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/17/2024
 
58.8

 
48.3

 
43.2

 
0.02
%
^Tavern Properties LLC and Wildwood Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/15/2039
 
425.0

 
410.7

 
419.6

 
0.20
%
^RDT Enterprises LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
9/15/2027
 
162.8

 
143.6

 
143.5

 
0.07
%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
9/15/2024
 
272.5

 
226.3

 
211.6

 
0.10
%
^KW Zion, LLC and Key West Gallery Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/12/2039
 
1,250.0

 
1,199.9

 
1,230.5

 
0.59
%
^Indy East Smiles Youth Dentistry LLC dba Prime Smile East
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2024
 
630.2

 
523.3

 
469.6

 
0.22
%
^B&P Diners LLC dba Engine House Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/10/2024
 
80.0

 
66.4

 
59.3

 
0.03
%
^Feel The World Inc dba Xero Shoes and Invisible Shoes
 
Leather and Allied Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/5/2024
 
51.9

 
43.1

 
39.3

 
0.02
%
^Delta Aggregate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
8/28/2039
 
911.3

 
862.4

 
900.0

 
0.43
%
^Lamjam LLC, Goldsmith Lambros Inc
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024
 
133.8

 
110.4

 
111.2

 
0.05
%
^Orange County Cleaning Inc
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
8/27/2024
 
41.3

 
34.0

 
30.3

 
0.01
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/26/2024
 
121.0

 
99.7

 
94.5

 
0.05
%
^Atlas Auto Body Inc dba Atlas Auto Sales
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/22/2039
 
51.6

 
49.4

 
49.6

 
0.02
%
^Katie Senior Care LLC dba Home Instead Senior Care
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2024
 
124.3

 
102.3

 
91.3

 
0.04
%
^S&P Holdings of Daytona LLC S&P Corporation of Daytona Beach
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039
 
433.5

 
404.3

 
421.9

 
0.20
%
^Alpha Preparatory Academy LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039
 
145.2

 
139.7

 
145.8

 
0.07
%

119
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Almost Home Property LLC and Almost Home Daycare LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/7/2039
 
715.8

 
686.9

 
710.4

 
0.34
%
^AGV Enterprises LLC dba Jet's Pizza #42
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024
 
54.8

 
44.8

 
40.8

 
0.02
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/31/2024
 
379.1

 
321.6

 
304.2

 
0.15
%
^575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2039
 
22.5

 
21.2

 
22.1

 
0.01
%
^L&S Insurance & Financial Services Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/25/2024
 
22.5

 
18.4

 
16.6

 
0.01
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/24/2039
 
150.0

 
143.6

 
149.5

 
0.07
%
^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/17/2039
 
100.0

 
96.6

 
98.4

 
0.05
%
^AMG Holding, LLC and Stetson Automotive, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039
 
208.0

 
198.7

 
211.2

 
0.10
%
^Highway Striping Inc
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024
 
53.1

 
43.0

 
42.7

 
0.02
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024
 
100.0

 
81.0

 
82.6

 
0.04
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039
 
875.3

 
837.8

 
890.1

 
0.43
%
^iFood, Inc. dba Steak N Shake
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2039
 
629.8

 
602.1

 
626.0

 
0.30
%
^FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2039
 
321.8

 
307.3

 
324.1

 
0.16
%
^Zinger Hardware and General Merchant Inc
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/26/2024
 
110.5

 
89.4

 
89.9

 
0.04
%
^JPM Investments LLC and Carolina Family Foot Care P.A.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2039
 
136.1

 
132.6

 
140.2

 
0.07
%
^Nikobella Properties LLC and JPO Inc dba Village Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/25/2039
 
476.3

 
456.1

 
481.5

 
0.23
%
^Big Sky Plaza LLC and Strickland, Incorporated
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/20/2039
 
233.4

 
222.9

 
235.1

 
0.11
%
^510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/19/2024
 
332.0

 
269.1

 
274.3

 
0.13
%
^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039
 
920.3

 
878.8

 
934.4

 
0.45
%
^Hotels of North Georgia LLC dba Comfort Inn and Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
6/17/2039
 
837.5

 
799.8

 
850.4

 
0.41
%

120
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Global Educational Delivery Services LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/16/2024
 
60.0

 
49.2

 
50.2

 
0.02
%
^Rainbow Dry Cleaners
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/13/2024
 
122.5

 
99.1

 
98.7

 
0.05
%
^NVR Corporation dba Discount Food Mart
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/11/2039
 
68.3

 
63.5

 
67.5

 
0.03
%
^Sico & Walsh Insurance Agency Inc and The AMS Trust
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/6/2039
 
250.0

 
89.2

 
94.9

 
0.05
%
^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/3/2024
 
22.5

 
18.2

 
18.1

 
0.01
%
^Long Island Barber + Beauty LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/2/2039
 
55.5

 
53.0

 
55.7

 
0.03
%
^CJR LLC and PowerWash Plus, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024
 
53.0

 
42.5

 
43.0

 
0.02
%
^Pocono Coated Products, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/30/2024
 
22.5

 
18.0

 
18.3

 
0.01
%
^EGM Food Services Inc dba Gold Star Chili
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024
 
19.2

 
15.4

 
15.3

 
0.01
%
^R. A. Johnson, Inc. dba Rick Johnson Auto & Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/29/2039
 
943.8

 
899.8

 
956.7

 
0.46
%
^Wilton Dental Care P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/29/2024
 
128.1

 
105.0

 
103.4

 
0.05
%
^Jonesboro Health Food Center LLC
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/27/2024
 
60.0

 
48.1

 
47.3

 
0.02
%
^USI Properties LLC dba U Store It
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/23/2039
 
144.6

 
137.9

 
146.4

 
0.07
%
^Bay State Funeral Services, LLC and Riley Funeral Home Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/21/2039
 
134.9

 
129.0

 
137.1

 
0.07
%
^Hae M. and Jin S. Park dba Buford Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/15/2039
 
166.5

 
158.0

 
165.6

 
0.08
%
^Moochie's LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/13/2024
 
100.5

 
81.6

 
80.6

 
0.04
%
^The River Beas LLC and Punam Singh
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/8/2039
 
90.3

 
86.0

 
90.7

 
0.04
%
^AS Boyals LLC dba Towne Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
4/29/2039
 
117.5

 
111.8

 
118.9

 
0.06
%
^ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/25/2024
 
500.0

 
397.5

 
390.5

 
0.19
%
^Gerami Realty, LC Sherrill Universal City Corral, LP
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/23/2027
 
78.8

 
67.5

 
69.6

 
0.03
%

121
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Complete Body & Paint, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/23/2039
 
20.8

 
19.9

 
21.1

 
0.01
%
^Island Wide Realty LLC and Long Island Partners, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
4/22/2039
 
103.8

 
98.8

 
105.1

 
0.05
%
^Wilshire Media Systems Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/17/2024
 
186.3

 
148.3

 
146.7

 
0.07
%
^1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/9/2039
 
137.5

 
129.9

 
137.4

 
0.07
%
^Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
449.0

 
426.5

 
450.8

 
0.22
%
^Dantanna's Tavern LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2024
 
164.3

 
131.5

 
130.9

 
0.06
%
^Little People's Village II LLC and Iliopoulos Realty LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
92.1

 
88.1

 
91.9

 
0.04
%
^RDT Enterprises, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028
 
141.2

 
123.9

 
128.3

 
0.06
%
^Little People's Village II LLC and Iliopoulos Realty LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
101.5

 
97.1

 
101.4

 
0.05
%
^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/31/2024
 
1,250.0

 
590.9

 
602.4

 
0.29
%
^Kemmer, LLC and Pitts Package Store, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2039
 
117.5

 
111.8

 
115.7

 
0.06
%
^Wilban LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/28/2039
 
427.5

 
407.2

 
429.7

 
0.21
%
^Lake Area Autosound LLC and Ryan H. Whittington
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
7/28/2039
 
125.0

 
120.5

 
126.7

 
0.06
%
^Hascher Gabelstapler Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/26/2024
 
143.3

 
114.5

 
115.4

 
0.06
%
^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/21/2039
 
145.0

 
138.0

 
144.6

 
0.07
%
^Cormac Enterprises and Wyoming Valley Beverage Incorporated
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039
 
110.8

 
105.4

 
112.0

 
0.05
%
^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co.
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/20/2039
 
497.5

 
477.3

 
507.2

 
0.24
%
^Kinisi, Inc. dba The River North UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2024
 
41.3

 
26.2

 
26.4

 
0.01
%
^SE Properties 39 Old Route 146, LLC, SmartEarly Clifton Park LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039
 
408.0

 
388.7

 
413.0

 
0.20
%
^Tortilla King Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2039
 
216.9

 
206.9

 
216.0

 
0.10
%

122
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Tortilla King, Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/14/2029
 
1,033.1

 
926.1

 
943.6

 
0.45
%
^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/13/2039
 
223.5

 
212.3

 
225.6

 
0.11
%
^Avayaan2 LLC dba Island Cove
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/7/2039
 
157.5

 
149.6

 
157.8

 
0.08
%
^Onofrio's Fresh Cut Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/6/2024
 
75.0

 
59.1

 
59.9

 
0.03
%
^R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039
 
417.5

 
396.0

 
416.4

 
0.20
%
^Summit Beverage Group LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024
 
350.6

 
273.7

 
275.2

 
0.13
%
^952 Boston Post Road Realty, LLC and HNA LLC dba Styles International
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039
 
211.0

 
200.1

 
209.9

 
0.10
%
^Choe Trade Group Inc dba Rapid Printers of Monterey
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/28/2024
 
159.3

 
124.4

 
126.8

 
0.06
%
^Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
2/28/2039
 
214.2

 
203.6

 
213.3

 
0.10
%
^96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/12/2039
 
141.3

 
134.5

 
142.9

 
0.07
%
^JWB Industries, Inc. dba Carteret Die Casting
 
Primary Metal Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/11/2024
 
280.0

 
218.6

 
216.4

 
0.10
%
^Awesome Pets II Inc dba Mellisa's Pet Depot
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024
 
83.2

 
65.7

 
65.2

 
0.03
%
^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/7/2039
 
99.1

 
94.4

 
99.5

 
0.05
%
^Sovereign Communications LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/7/2024
 
907.8

 
712.6

 
702.2

 
0.34
%
^Sarah Sibadan dba Sibadan Agency
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
1/27/2039
 
129.4

 
122.5

 
129.7

 
0.06
%
^3Fmanagement LLC and ATC Fitness Cape Coral, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
1/24/2024
 
425.0

 
328.7

 
326.6

 
0.16
%
^JDR Industries Inc dba CST-The Composites Store, JetCat USA
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
1/21/2024
 
140.3

 
108.5

 
108.2

 
0.05
%
^Icore Enterprises Inc dba Air Flow Filters Inc
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
1/15/2024
 
21.8

 
16.8

 
17.1

 
0.01
%
^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/30/2027
 
712.5

 
616.3

 
635.8

 
0.30
%
^Nutmeg North Associates LLC Steeltech Building Products Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/31/2038
 
897.8

 
868.1

 
909.1

 
0.43
%

123
See accompanying notes to unaudited condensed consolidated financial statements.


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
^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/27/2023
 
656.3

 
511.4

 
521.0

 
0.25
%
^Shane M. Howell and Buck Hardware and Garden Center, LLC
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
12/27/2038
 
322.5

 
304.7

 
318.7

 
0.15
%
^KK International Trading Corporation
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/23/2028
 
190.0

 
165.0

 
169.4

 
0.08
%
^Kurtis Sniezek dba Wolfe's Foreign Auto
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038
 
88.9

 
84.0

 
89.2

 
0.04
%
^Mosley Auto Group LLC dba America's Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/20/2038
 
221.5

 
209.3

 
221.5

 
0.11
%
^Lefont Theaters Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
12/19/2023
 
14.4

 
11.0

 
11.0

 
0.01
%
^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/19/2038
 
555.3

 
524.6

 
550.6

 
0.26
%
^TAK Properties LLC and Kinderland Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
12/18/2038
 
405.0

 
383.2

 
402.7

 
0.19
%
^Any Garment Cleaner-East Brunswick, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2023
 
53.8

 
41.4

 
41.9

 
0.02
%
^TOL LLC dba Wild Birds Unlimited
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
12/13/2023
 
18.0

 
14.3

 
14.2

 
0.01
%
^8 Minute Oil Change of Springfield Corporation and John Nino
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/12/2038
 
196.8

 
182.0

 
192.9

 
0.09
%
^920 CHR Realty LLC V. Garofalo Carting Inc
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
12/10/2038
 
418.1

 
395.0

 
419.6

 
0.20
%
^DKB Transport Corp
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2038
 
138.8

 
131.1

 
139.2

 
0.07
%
^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/3/2038
 
104.3

 
98.5

 
102.3

 
0.05
%
^Spectrum Development LLC and Solvit Inc & Solvit North, Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/2/2023
 
387.3

 
296.6

 
296.7

 
0.14
%
^BVIP Limousine Service LTD
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
11/27/2038
 
76.5

 
72.1

 
76.2

 
0.04
%
^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/27/2023
 
67.2

 
51.0

 
50.4

 
0.02
%
^Wallace Holdings LLC,GFA International Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.5%
 
11/25/2023
 
125.0

 
94.5

 
92.5

 
0.04
%

124
See accompanying notes to unaudited condensed consolidated financial statements.


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
^AcuCall LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/21/2023
 
15.8

 
11.9

 
11.6

 
0.01
%
^Seven Peaks Mining Inc and Cornerstone Industrial Minerals Corporation
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
11/18/2038
 
1,250.0

 
1,175.6

 
1,218.3

 
0.58
%
^Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
11/18/2023
 
45.0

 
34.8

 
34.3

 
0.02
%
^Yousef Khatib dba Y&M Enterprises
 
Wholesale Electronic Markets and Agents and Brokers
 
Term Loan
 
Prime plus 2.75%
 
11/15/2023
 
75.0

 
56.9

 
56.2

 
0.03
%
^Howell Gun Works LLC
 
Sporting Goods, Hobby, Musical Instrument, and Book Stores
 
Term Loan
 
Prime plus 2.75%
 
11/14/2023
 
8.3

 
6.4

 
6.2

 
—
%
^Polpo Realty, LLC, Polpo Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/6/2038
 
62.5

 
58.9

 
62.5

 
0.03
%
^Twinsburg Hospitality Group LLC dba Comfort Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038
 
945.0

 
893.7

 
937.8

 
0.45
%
^Mid-Land Sheet Metal Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038
 
137.5

 
129.6

 
136.9

 
0.07
%
^Master CNC Inc & Master Properties LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038
 
596.6

 
561.6

 
585.4

 
0.28
%
^Janice B. McShan and The Metropolitan Day School, LLC
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/31/2023
 
42.8

 
33.1

 
33.7

 
0.02
%
^1 North Restaurant Corp dba 1 North Steakhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/31/2038
 
212.5

 
200.0

 
211.6

 
0.10
%
^Meridian Hotels LLC dba Best Western Jonesboro
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
10/29/2038
 
664.5

 
625.3

 
664.1

 
0.32
%
^New Image Building Services Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/29/2023
 
331.3

 
248.9

 
247.0

 
0.12
%
^Greenbrier Technical Services, Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/24/2023
 
240.1

 
164.4

 
167.5

 
0.08
%
^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
10/24/2038
 
246.3

 
231.8

 
242.6

 
0.12
%
^Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
10/18/2023
 
87.5

 
65.7

 
65.3

 
0.03
%
^Cencon Properties LLC and Central Connecticut Warehousing Company
 
Warehousing and Storage
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
344.5

 
324.0

 
343.7

 
0.16
%
^Onofrios Enterprises LLC Onofrios Fresh Cut, Inc
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
312.5

 
294.6

 
310.8

 
0.15
%
^Discount Wheel and Tire
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
223.8

 
210.1

 
220.5

 
0.11
%

125
See accompanying notes to unaudited condensed consolidated financial statements.


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
^First Steps Real Estate Company, LLC and First Steps Preschool
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
97.6

 
91.7

 
95.7

 
0.05
%
^Lenoir Business Partners LLC LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
322.7

 
308.0

 
324.4

 
0.16
%
^Top Properties LLC and LP Industries, Inc dba Childforms
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/30/2038
 
120.0

 
114.3

 
121.4

 
0.06
%
^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038
 
335.1

 
314.6

 
331.2

 
0.16
%
^Gabrielle Realty, LLC
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
9/27/2038
 
757.6

 
711.3

 
746.0

 
0.36
%
^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Homes
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038
 
100.0

 
94.0

 
99.8

 
0.05
%
^Eastside Soccer Dome, Inc .
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038
 
463.8

 
435.4

 
462.1

 
0.22
%
^Southeast Chicago Soccer, Inc.
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2038
 
51.3

 
48.1

 
51.1

 
0.02
%
^HJ & Edward Enterprises, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/26/2023
 
262.5

 
201.7

 
203.3

 
0.10
%
^Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/25/2038
 
89.3

 
85.6

 
89.5

 
0.04
%
^Diamond Memorials Incorporated
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/25/2023
 
14.3

 
9.7

 
9.5

 
—
%
^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2023
 
46.3

 
34.6

 
34.2

 
0.02
%
^Faith Memorial Chapel LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2038
 
268.4

 
252.8

 
266.1

 
0.13
%
^Westville Seafood LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2038
 
112.3

 
105.4

 
110.7

 
0.05
%
^Maynard Enterprises Inc dba Fastsigns of Texarkana
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
9/18/2023
 
16.1

 
12.1

 
12.0

 
0.01
%
^Grafio Inc dba Omega Learning Center-Acworth
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/13/2023
 
156.3

 
123.3

 
122.2

 
0.06
%
^Sound Manufacturing Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/12/2028
 
54.8

 
46.9

 
47.7

 
0.02
%
^The Berlerro Group, LLC dba Sky Zone
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/12/2023
 
421.3

 
323.5

 
320.0

 
0.15
%
^Prospect Kids Academy Inc
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038
 
124.3

 
116.4

 
122.8

 
0.06
%

126
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Alma J. and William R. Walton and Almas Child Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
9/11/2038
 
39.5

 
37.1

 
39.4

 
0.02
%
^B for Brunette dba Blo
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/10/2023
 
53.4

 
40.3

 
39.5

 
0.02
%
^Schmaltz Holdings, LLC and Schmaltz Operations, LLC dba Companio
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/4/2038
 
224.2

 
208.8

 
219.1

 
0.10
%
^Excel RP Inc
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
130.3

 
96.0

 
97.5

 
0.05
%
^IlOKA Inc dba Microtech Tel and NewCloud Networks
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
687.5

 
506.6

 
504.2

 
0.24
%
^ACI Northwest Inc.
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
906.3

 
452.8

 
459.3

 
0.22
%
^Spectrum Radio Fairmont, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
187.5

 
164.3

 
167.0

 
0.08
%
^Gulfport Academy Child Care and Learning Center, Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
8/30/2023
 
43.3

 
31.9

 
32.3

 
0.02
%
^Ramard Inc and Advanced Health Sciences Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/28/2023
 
187.5

 
138.2

 
135.3

 
0.06
%
^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/26/2023
 
85.8

 
59.8

 
60.9

 
0.03
%
^JSIL LLC dba Blackstones Hairdressing
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
8/16/2023
 
19.5

 
14.2

 
14.1

 
0.01
%
^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/14/2038
 
445.0

 
326.6

 
341.3

 
0.16
%
^Caribbean Concepts, Inc. dba Quick Bleach
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/12/2023
 
22.5

 
16.7

 
16.4

 
0.01
%
^209 North 3rd Street, LLC, Yuster Insurance Group Inc
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/29/2038
 
83.9

 
78.5

 
82.7

 
0.04
%
^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/26/2038
 
190.0

 
177.7

 
186.2

 
0.09
%
^Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/24/2023
 
11.3

 
8.2

 
8.4

 
—
%
^Angkor Restaurant Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038
 
93.0

 
87.1

 
92.1

 
0.04
%
^Harbor Ventilation Inc and Estes Investment, LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2038
 
92.1

 
22.4

 
23.7

 
0.01
%
^Tri County Heating and Cooling Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/19/2023
 
87.8

 
64.0

 
65.0

 
0.03
%
^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
7/17/2023
 
53.8

 
39.2

 
38.4

 
0.02
%

127
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Maxiflex LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/28/2023
 
153.5

 
110.5

 
112.9

 
0.05
%
^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038
 
97.5

 
91.0

 
97.1

 
0.05
%
^JRA Holdings LLC, Jasper County Cleaners Inc dba Superior Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2038
 
121.0

 
112.0

 
119.4

 
0.06
%
^2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2026
 
1,250.0

 
788.0

 
812.6

 
0.39
%
^CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
 
Heavy and Civil Engineering Construction
 
Term Loan
 
Prime plus 2.75%
 
6/18/2028
 
875.0

 
737.8

 
765.6

 
0.37
%
^KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/14/2023
 
343.8

 
248.2

 
249.4

 
0.12
%
^Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/12/2038
 
932.8

 
847.9

 
904.0

 
0.43
%
^Willowbrook Properties LLC, Grove Gardens Landscaping Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038
 
186.3

 
173.9

 
184.9

 
0.09
%
^Absolute Desire LLC and Mark H. Szierer, Sophisticated Smile
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/5/2038
 
188.3

 
175.9

 
186.1

 
0.09
%
^RKP Service dba Rainbow Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/31/2023
 
300.0

 
216.7

 
218.1

 
0.10
%
^RXSB, Inc dba Medicine Shoppe
 
Health and Personal Care Stores
 
Term Loan
 
Prime plus 2.75%
 
5/30/2023
 
186.3

 
133.3

 
133.7

 
0.06
%
^Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/28/2023
 
63.5

 
45.3

 
45.8

 
0.02
%
^Ryan D. Thornton and Thornton & Associates LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
5/24/2023
 
68.8

 
37.3

 
37.4

 
0.02
%
^PowerWash Plus, Inc. and CJR, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/30/2038
 
550.0

 
512.3

 
543.3

 
0.26
%
^Peanut Butter & Co., Inc.
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/30/2023
 
100.0

 
70.3

 
70.6

 
0.03
%
^Brothers International Desserts
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/26/2023
 
230.0

 
162.6

 
164.9

 
0.08
%
^Kidrose, LLC dba Kidville Riverdale
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/22/2023
 
78.8

 
56.3

 
56.9

 
0.03
%
^Vernon & Stephanie Scott and Little Stars Day Care Center, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/18/2038
 
151.0

 
140.5

 
149.8

 
0.07
%
^1258 Hartford TPKE, LLC and Phelps and Sons, Inc
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038
 
124.6

 
115.7

 
122.4

 
0.06
%
^Capital Scrap Metal, LLC and Powerline Investment, LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038
 
500.0

 
441.7

 
470.7

 
0.23
%

128
See accompanying notes to unaudited condensed consolidated financial statements.


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
^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads;
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/29/2038
 
336.0

 
312.5

 
330.0

 
0.16
%
^Neyra Industries, Inc. and Edward Neyra
 
Nonmetallic Mineral Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023
 
217.5

 
152.1

 
155.1

 
0.07
%
^A & M Commerce, Inc. dba Cranberry Sunoco
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
3/27/2038
 
330.3

 
306.4

 
325.7

 
0.16
%
^Xela Pack, Inc. and Aliseo and Catherine Gentile
 
Paper Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2028
 
271.8

 
225.8

 
234.1

 
0.11
%
^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2038
 
537.5

 
499.0

 
528.7

 
0.25
%
^Michael A.and HeatherR. Welsch dba Art & FrameEtc.
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/22/2038
 
67.5

 
62.7

 
66.6

 
0.03
%
^M & H Pine Straw Inc and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023
 
288.8

 
201.8

 
205.1

 
0.10
%
^Truth Technologies Inc dba Truth Technologies Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2023
 
79.5

 
55.6

 
55.9

 
0.03
%
^J. Kinderman & Sons Inc., dba BriteStar Inc.
 
Electrical Equipment, Appliance, and Component Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2018
 
181.3

 
129.5

 
129.8

 
0.06
%
^Stellar Environmental LLC
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2023
 
56.3

 
39.4

 
40.1

 
0.02
%
^Sound Manufacturing, Inc. and Monster Power Equipment Inc.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/15/2023
 
523.0

 
364.8

 
369.5

 
0.18
%
^Golden Gate Lodging LLC
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2038
 
115.0

 
106.8

 
113.4

 
0.05
%
^Bakhtar Group LLC dba Malmaison
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2023
 
103.8

 
72.4

 
72.6

 
0.03
%
^River Club Golf Course Inc dba The River Club
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2038
 
475.2

 
440.2

 
467.2

 
0.22
%
^Osceola River Mill, LLC(EPC) Ironman Machine, Inc.
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/20/2038
 
86.3

 
79.9

 
84.9

 
0.04
%
^Java Warung, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/19/2038
 
51.0

 
47.3

 
50.3

 
0.02
%
^Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
2/15/2038
 
106.3

 
98.5

 
104.6

 
0.05
%
^Orient Direct, Inc. dba Spracht, Celltek, ODI
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/12/2023
 
84.9

 
58.0

 
58.1

 
0.03
%
^Knits R Us, Inc. dba NYC Sports
Textile Mills
 
Term Loan
 
Prime plus 2.75%
 
2/11/2038
 
125.0

 
116.0

 
123.6

 
0.06
%

129
See accompanying notes to unaudited condensed consolidated financial statements.


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
^North Country Transport, LLC
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/6/2023
 
15.0

 
10.4

 
10.6

 
0.01
%
^MJD Investments, LLC dba The Community Day School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2038
 
258.3

 
238.9

 
253.2

 
0.12
%
^Sherill Universal City dba Golden Corral
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/28/2038
 
440.5

 
409.0

 
433.7

 
0.21
%
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
12/31/2022
 
97.5

 
66.0

 
66.2

 
0.03
%
^Macho LLC Madelaine Chocolate Novelties Inc dba The Madelai
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/31/2037
 
500.0

 
463.9

 
494.1

 
0.24
%
^WI130, LLC & Lakeland Group, Inc dba Lakeland Electrical
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/31/2028
 
271.5

 
226.7

 
233.0

 
0.11
%
^Babie Bunnie Enterprises Inc dba Triangle Mothercare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/28/2027
 
46.3

 
34.4

 
35.0

 
0.02
%
^John Duffy Fuel Co., Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/28/2022
 
513.8

 
348.0

 
354.7

 
0.17
%
^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restauran
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2037
 
517.5

 
479.6

 
510.7

 
0.24
%
^Martin L Hopp, MD PHD A Medical Corp dba Tower ENT
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2022
 
66.3

 
44.7

 
45.1

 
0.02
%
^United Woodworking, Inc
 
Wood Product Manufacturing
 
Term Loan
 
6%
 
12/20/2022
 
17.3

 
11.7

 
11.9

 
0.01
%
^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/20/2022
 
225.0

 
152.3

 
154.0

 
0.07
%
^Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2027
 
389.6

 
318.7

 
326.0

 
0.16
%
^The Amendments Group LLC dba Brightstar
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/17/2022
 
22.5

 
15.2

 
15.5

 
0.01
%
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2037
 
286.5

 
265.0

 
281.5

 
0.13
%
^Aegis Creative Communications, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
11/30/2022
 
387.5

 
252.3

 
252.6

 
0.12
%
^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
11/28/2037
 
223.8

 
206.2

 
219.5

 
0.10
%
^D&L Rescources, Inc. dba The UPS Store
 
Miscellaneous Store Retailers
Term Loan
 
Prime plus 2.75%
 
11/27/2022
 
9.8

 
6.5

 
6.5

 
—
%
^Richmond Hill Mini Market, LLC
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/27/2037
 
185.3

 
170.7

 
181.3

 
0.09
%
^DRV Enterprise, Inc. dba Cici's Pizza # 339
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/26/2022
 
65.0

 
40.5

 
41.3

 
0.02
%

130
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Clean Brothers Company Inc dba ServPro of North Washington County
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/21/2022
 
17.0

 
7.7

 
7.8

 
—
%
^U & A Food and Fuel, Inc. dba Express Gas & Food Mart
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/21/2037
 
96.3

 
88.7

 
94.4

 
0.05
%
^Pioneer Windows Manufacturing Corp, Pioneer Windows
 
Fabricated Metal Product Manufacturing
Term Loan
 
Prime plus 2.75%
 
11/21/2022
 
275.0

 
184.0

 
186.0

 
0.09
%
^R & J Petroleum LLC Manar USA, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
11/20/2037
 
180.0

 
165.8

 
176.3

 
0.08
%
^St Judes Physical Therapy P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2022
 
21.0

 
14.0

 
14.3

 
0.01
%
^Hi-Def Imaging, Inc. dba SpeedPro Imaging
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
11/9/2022
 
22.2

 
14.9

 
15.0

 
0.01
%
^Reidville Hydraulics Mfg Inc dba Summit
 
Machinery Manufacturing
Term Loan
 
Prime plus 2.75%
 
11/2/2037
 
265.9

 
245.2

 
258.7

 
0.12
%
^Big Apple Entertainment Partners, LLC dba Ripley's Believe It or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
10/26/2022
 
180.0

 
121.8

 
122.0

 
0.06
%
^LA Diner Inc dba Loukas L A Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/28/2037
 
677.5

 
625.7

 
666.0

 
0.32
%
^ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2022
 
180.0

 
120.7

 
122.5

 
0.06
%
^University Park Retreat, LLC dba Massage Heights
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
9/27/2022
 
76.0

 
49.6

 
50.5

 
0.02
%
^Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/26/2037
 
183.8

 
169.9

 
180.0

 
0.09
%
^LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Mark
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/21/2037
 
252.3

 
231.4

 
245.0

 
0.12
%
^O'Rourkes Diner LLC dba O'Rourke's Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
9/19/2037
 
65.5

 
60.1

 
63.5

 
0.03
%
^Michael J. Speeney & Joyce Speeney and R2 Tape, Inc.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
8/31/2037
 
367.5

 
336.4

 
358.1

 
0.17
%
^AJK Enterprise LLC dba AJK Enterprise LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
8/27/2022
 
16.5

 
10.6

 
10.8

 
0.01
%
^New Image Building Services, Inc. dba New Image Repair Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/23/2037
 
285.7

 
261.6

 
275.7

 
0.13
%
^Suncoast Aluminum Furniture, Inc
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/17/2037
 
360.0

 
329.8

 
351.0

 
0.17
%
^Hofgard & Co., Inc. dba HofgardBenefits
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022
 
107.3

 
68.3

 
69.3

 
0.03
%
^Georgia Safe Sidewalks LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/27/2022
 
15.0

 
9.4

 
9.5

 
—
%

131
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Scoville Plumbing & Heating Inc and Thomas P. Scoville
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
7/25/2022
 
50.0

 
33.5

 
34.1

 
0.02
%
^Central Tire, Inc. dba Cooper Tire & Auto Services
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/29/2037
 
288.5

 
262.8

 
280.1

 
0.13
%
^WPI, LLC
 
Transportation Equipment Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2024
 
129.5

 
92.0

 
94.2

 
0.05
%
^Havana Central (NY) 5, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2022
 
1,166.8

 
766.6

 
780.9

 
0.37
%
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/27/2037
 
69.8

 
63.5

 
67.8

 
0.03
%
^KIND-ER-ZZ Inc dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/15/2022
 
50.0

 
31.2

 
31.6

 
0.02
%
^Graphish Studio, Inc. and Scott Fishoff
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/14/2022
 
20.3

 
12.7

 
12.9

 
0.01
%
^ALF, LLC, Mulit-Service Eagle Tires
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/31/2037
 
62.9

 
57.2

 
61.1

 
0.03
%
^Craig R Freehauf dba Lincoln Theatre
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/31/2022
 
47.9

 
22.0

 
22.4

 
0.01
%
^Lefont Theaters, Inc.
 
Motion Picture and Sound Recording Industries
 
Term Loan
 
Prime plus 2.75%
 
5/30/2022
 
137.0

 
85.2

 
86.6

 
0.04
%
^Christou Real Estate Holdings LLC dba Tops American Grill
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/17/2037
 
284.0

 
257.9

 
275.4

 
0.13
%
^Tracey Vita-Morris dba Tracey Vita's School of Dance
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
5/10/2022
 
22.5

 
14.0

 
14.2

 
0.01
%
^Bisson Transportation, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2037
 
588.1

 
553.0

 
588.9

 
0.28
%
^Bisson Moving & Storage Company Bisson Transportation Inc and BTG Real
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
5/7/2022
 
528.8

 
350.0

 
356.3

 
0.17
%
^Fair Deal Food Mart Inc dba Neighbors Market
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
5/3/2037
 
381.3

 
346.5

 
370.3

 
0.18
%
^Tanner Optical, Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2022
 
8.3

 
5.0

 
5.1

 
—
%
^Zane Filippone Co Inc dba Culligan Water Conditioning
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/12/2022
 
558.2

 
344.0

 
350.0

 
0.17
%
^Indoor Playgrounds Limited Liability Company dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
4/5/2022
 
19.5

 
8.4

 
8.6

 
—
%
^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/30/2031
 
231.5

 
195.9

 
205.8

 
0.10
%

132
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Access Staffing, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/30/2022
 
187.5

 
113.6

 
114.8

 
0.05
%
^Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/29/2037
 
755.4

 
696.2

 
743.5

 
0.36
%
^Manuel P. Barrera and Accura Electrical Contractor, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/23/2028
 
103.7

 
82.0

 
84.9

 
0.04
%
^Shweiki Media, Inc. dba Study Breaks Magazine
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
3/22/2027
 
1,178.8

 
916.7

 
947.4

 
0.45
%
^ATC Fitness, LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2022
 
10.2

 
6.1

 
6.2

 
—
%
^ATI Jet, Inc.
 
Air Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026
 
852.8

 
643.1

 
664.9

 
0.32
%
^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/22/2036
 
495.0

 
452.5

 
482.9

 
0.23
%
^K's Salon, LLC d/b/a K's Salon
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/20/2021
 
73.6

 
42.8

 
43.2

 
0.02
%
^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/16/2021
 
250.0

 
144.1

 
146.2

 
0.07
%
^M & H Pinestraw, Inc. and Harris L. Maloy
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
12/15/2021
 
238.3

 
138.6

 
140.5

 
0.07
%
^Taylor Transport, Inc
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/8/2021
 
515.5

 
219.2

 
223.1

 
0.11
%
^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
11/16/2021
 
62.5

 
35.6

 
36.3

 
0.02
%
^MRM Supermarkets, Inc. dba Constantin's Breads
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
11/10/2021
 
137.5

 
79.0

 
80.2

 
0.04
%
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
10/26/2021
 
58.8

 
34.4

 
34.8

 
0.02
%
^28 Cornelia Street Properties, LLC and Zouk, Ltd.dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
10/25/2021
 
22.5

 
12.5

 
12.7

 
0.01
%
^PTK, Incorporated dba Night N Day 24 HR Convenience Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036
 
137.5

 
122.9

 
131.0

 
0.06
%
^39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036
 
28.5

 
25.3

 
26.9

 
0.01
%
^39581 Garfield, LLC and Tri County Neurological Associates, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
9/30/2036
 
83.3

 
74.3

 
79.1

 
0.04
%
^Robert E. Caves, Sr. and American Plank dba Caves Enterprises
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/30/2021
 
302.5

 
165.5

 
168.3

 
0.08
%

133
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/28/2021
 
1,070.0

 
589.1

 
594.4

 
0.28
%
^Polymer Sciences, Inc. dba Polymer Sciences, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
9/28/2036
 
422.6

 
377.3

 
402.4

 
0.19
%
^Equity National Capital LLC & Chadbourne Road Capital, LLC
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
9/26/2021
 
62.5

 
34.8

 
35.2

 
0.02
%
^Bryan Bantry Inc.
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
9/8/2021
 
400.0

 
148.1

 
149.4

 
0.07
%
^SBR Technologies d/b/a Color Graphics
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/31/2021
 
806.2

 
433.9

 
441.2

 
0.21
%
^Michael S. Decker & Janet Decker dba The Hen House Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2036
 
16.4

 
14.7

 
15.6

 
0.01
%
^Qycell Corporation
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
8/19/2021
 
187.5

 
97.1

 
98.2

 
0.05
%
^Trademark Equipment Company Inc and David A. Daniel
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
8/19/2036
 
133.6

 
119.1

 
126.8

 
0.06
%
^Valiev Ballet Academy, Inc
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036
 
91.5

 
37.8

 
40.3

 
0.02
%
^A & A Auto Care, LLC dba A & A Auto Care, LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
8/12/2036
 
101.0

 
90.1

 
96.0

 
0.05
%
^LaHoBa, LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/3/2036
 
77.5

 
68.6

 
73.2

 
0.04
%
^Kelly Chon LLC dba Shi-Golf
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
7/29/2021
 
17.5

 
6.9

 
7.0

 
—
%
^MTV Bowl, Inc. dba Legend Lanes
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/30/2036
 
248.5

 
223.0

 
237.7

 
0.11
%
^Lavertue Properties LLP dba Lavertue Properties
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036
 
44.8

 
39.8

 
42.5

 
0.02
%
^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/29/2036
 
338.1

 
312.0

 
332.9

 
0.16
%
^Pierce Developments, Inc. dba Southside Granite
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/13/2036
 
256.1

 
227.3

 
242.2

 
0.12
%
^Major Queens Body & Fender Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/10/2021
 
28.6

 
15.2

 
15.4

 
0.01
%

134
See accompanying notes to unaudited condensed consolidated financial statements.


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
^J&K Fitness, LLC dba Physiques Womens Fitness Center
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/8/2036
 
449.3

 
407.6

 
434.9

 
0.21
%
^Peanut Butter & Co., Inc. dba Peanut Butter & Co.
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/3/2021
 
65.5

 
33.6

 
34.0

 
0.02
%
^Demand Printing Solutions, Inc. and MLM Enterprises, LLC dba Demand
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/27/2021
 
16.5

 
8.6

 
8.7

 
—
%
^Modern on the Mile, LLC dba Ligne Roset
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
5/25/2021
 
212.5

 
110.0

 
111.4

 
0.05
%
^Music Mountain Water Company, LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/25/2036
 
138.1

 
121.4

 
129.6

 
0.06
%
^Profile Performance, Inc. and Eidak Real Estate, L.L.C.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/20/2036
 
127.5

 
112.6

 
120.2

 
0.06
%
^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/18/2036
 
129.5

 
116.5

 
124.4

 
0.06
%
^Michael S. Korfe dba North Valley Auto Repair
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/24/2036
 
15.5

 
13.7

 
14.6

 
0.01
%
^Actknowledge,Inc dba Actknowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/21/2021
 
57.3

 
29.0

 
29.4

 
0.01
%
^Food & Beverage Associates Of N.J. Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/11/2021
 
10.0

 
4.4

 
4.5

 
—
%
^Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/10/2021
 
153.0

 
77.5

 
78.4

 
0.04
%
^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
2/25/2023
 
63.0

 
36.2

 
37.1

 
0.02
%
^SuzyQue’s LLC dba Suzy Que’s
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2036
 
61.0

 
53.8

 
57.4

 
0.03
%
^Little People’s Village, LLC dba Little People’s Village
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/31/2036
 
31.1

 
27.3

 
29.1

 
0.01
%
^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc.
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/28/2036
 
113.4

 
99.4

 
106.1

 
0.05
%
^Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
12/29/2020
 
7.6

 
3.5

 
3.5

 
—
%
Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown
 
Support Activities for Transportation
 
Term Loan
 
5.25%
 
12/28/2035
 
145.9

 
137.4

 
146.2

 
0.07
%
^Shree OM Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
12/17/2035
 
27.7

 
24.2

 
25.8

 
0.01
%
Groundworks Unlimited LLC
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
12/17/2023
 
120.0

 
81.2

 
83.4

 
0.04
%
^Lodin Medical Imaging, LLC dba Watson Imaging Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/1/2020
 
66.4

 
30.7

 
31.1

 
0.01
%

135
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
11/30/2035
 
34.0

 
29.7

 
31.6

 
0.02
%
^Any Garment Cleaner-East Brunswick, Inc dba Any Garment Cleaner
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/18/2020
 
42.5

 
16.9

 
17.1

 
0.01
%
^West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
11/12/2035
 
148.7

 
129.9

 
138.3

 
0.07
%
^Lincoln Park Physical Therapy
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
10/20/2020
 
43.5

 
19.9

 
20.2

 
0.01
%
^K9 Bytes, Inc & Epazz, Inc
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
9/30/2020
 
18.5

 
8.7

 
8.8

 
—
%
^Elan Realty, LLC and Albert Basse Asociates, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
9/30/2035
 
228.2

 
198.3

 
211.3

 
0.10
%
^Success Express,Inc. dba Success Express
 
Couriers and Messengers
 
Term Loan
 
Prime plus 2.75%
 
9/29/2020
 
91.8

 
41.1

 
41.4

 
0.02
%
^Modern Manhattan, LLC
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020
 
204.0

 
92.5

 
93.5

 
0.04
%
^Dirk's Trucking, L.L.C. dba Dirk's Trucking
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/17/2020
 
17.7

 
7.9

 
8.0

 
—
%
^Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035
 
50.1

 
43.4

 
46.3

 
0.02
%
^Newsome Trucking Inc and Kevin Newsome
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/2/2035
 
423.1

 
208.3

 
221.6

 
0.11
%
^California College of Communications, Inc.
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
11/2/2020
 
172.5

 
79.7

 
80.5

 
0.04
%
^DDLK Investments LLC dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020
 
7.5

 
2.6

 
2.6

 
—
%
^Planet Verte,LLC dba Audio Unlimited
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
9/20/2020
 
40.0

 
17.9

 
18.0

 
0.01
%
^Members Only Software
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
8/30/2020
 
40.3

 
17.6

 
17.8

 
0.01
%
^ActKnowledge,Inc dba ActKnowledge
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2020
 
50.0

 
21.4

 
21.6

 
0.01
%
^I-90 RV & Auto Supercenter
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
6/29/2035
 
74.9

 
64.6

 
68.9

 
0.03
%
^WeaverVentures, Inc dba The UPS Store
 
Postal Service
 
Term Loan
 
Prime plus 2.75%
 
7/28/2020
 
23.8

 
10.3

 
10.5

 
0.01
%
^CJ Park Inc. dba Kidville Midtown West
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2020
 
26.4

 
8.9

 
9.0

 
—%
^Zouk, Ltd. dba Palma
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
8/25/2020
 
27.5

 
12.2

 
12.3

 
0.01%

136
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Tanner Optical Inc. dba Murphy Eye Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2035
 
94.6

 
81.7

 
87.1

 
0.04%
^M & H Pine Straw, Inc.and Harris Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
7/10/2020
 
67.5

 
29.2

 
29.6

 
0.01%
^Excel RP, Inc., Kevin and Joann Foley
 
Machinery Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
7/8/2028
 
50.0

 
37.9

 
39.6

 
0.02%
ValleyStar, Inc. dba BrightStar HealthCare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020
 
0.6

 
2.6

 
2.6

 
—%
^ValleyStar, Inc. dba BrightStar Healthcare
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/28/2020
 
7.5

 
3.2

 
3.2

 
—%
^Diag, LLC dba Kidville
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
6/21/2020
 
37.5

 
15.6

 
15.8

 
0.01%
^M & H Pine Straw, Inc and Harris L. Maloy
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
6%
 
4/30/2020
 
183.3

 
59.4

 
60.2

 
0.03%
^New Economic Methods LLC dba Rita's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/15/2020
 
24.8

 
0.7

 
0.7

 
—%
^Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
4/26/2020
 
6.3

 
2.5

 
2.6

 
—%
^Vortex Automotive LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/5/2035
 
76.6

 
65.8

 
70.1

 
0.03%
^ATC Fitness LLC dba Around the Clock Fitness
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019
 
15.0

 
4.5

 
4.5

 
—%
^Lahoba,LLC dba Papa John's Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/30/2034
 
42.5

 
36.2

 
38.6

 
0.02%
^Music Mountain Water Company,LLC dba Music Mountain Water Co.
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/29/2019
 
185.4

 
69.1

 
69.9

 
0.03%
^Animal Intrusion Prevention Systems Holding Company, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/29/2024
 
126.5

 
29.0

 
29.9

 
0.01%
^David A. Nusblatt, D.M.D, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019
 
9.0

 
3.3

 
3.3

 
—%
^CMA Consulting dba Construction Management Associates
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019
 
58.5

 
19.5

 
19.7

 
0.01%
^KMC RE, LLC & B&B Kennels
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/19/2034
 
58.3

 
49.5

 
52.7

 
0.03%
^Demand Printing Solutions, Inc.
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
12/12/2019
 
10.0

 
3.6

 
3.7

 
—%
^Planet Verte, LLC dba Audio Unlimited of Oceanside
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
11/28/2019
 
57.0

 
20.3

 
20.5

 
0.01%
^Demand Printing Solutions, Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/29/2034
 
147.5

 
124.9

 
132.9

 
0.06%

137
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Supreme Screw Products
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
4/17/2019
 
308.2

 
87.6

 
88.4

 
0.04%
^Gray Tree Service, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2018
 
50.0

 
12.4

 
12.5

 
0.01%
^Envy Salon & Spa LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
12/4/2018
 
20.3

 
4.9

 
4.9

 
—%
^Gourmet to You, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2019
 
12.1

 
3.3

 
3.3

 
—%
^The Alba Financial Group, Inc.
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
6%
 
1/10/2019
 
22.5

 
12.1

 
12.2

 
0.01%
^Grapevine Professional Services, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
1/22/2019
 
8.2

 
2.0

 
2.0

 
—%
^Inflate World Corporation
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
9/30/2018
 
7.5

 
1.3

 
1.3

 
—%
^Peter Thomas Roth Labs LL
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
9/26/2018
 
425.0

 
93.3

 
93.9

 
0.04%
^Dream Envy, Ltd. dba Massage Envy
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
11/9/2018
 
88.0

 
20.6

 
20.7

 
0.01%
^CBA D&A Pope, LLC dba Christian Brothers Automotive
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/14/2018
 
144.9

 
28.8

 
28.9

 
0.01%
^Gilbert Chiropractic Clinic, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/7/2018
 
22.5

 
4.0

 
4.1

 
—%
^D & D's Divine Beauty School of Esther, LLC
 
Educational Services
 
Term Loan
 
6%
 
8/1/2031
 
57.7

 
51.3

 
54.1

 
0.03%
^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/29/2018
 
9.4

 
1.6

 
1.6

 
—%
^Burks & Sons Development LLC dba Tropical Smoothie Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/22/2018
 
49.8

 
8.0

 
8.0

 
—%
Bliss Coffee and Wine Bar, LLC
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
3/19/2018
 
87.5

 
69.9

 
70.2

 
0.03%
^Zog Inc.
 
Other Information Services
 
Term Loan
 
6%
 
3/17/2018
 
97.5

 
62.1

 
62.3

 
0.03%
^Saan M.Saelee dba Saelee's Delivery Service
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
3/12/2018
 
9.8

 
1.6

 
1.6

 
—%
Integrity Sports Group, LLC
 
Performing Arts, Spectator Sports, and Related Industries
 
Term Loan
 
6%
 
3/6/2018
 
75.0

 
31.7

 
31.8

 
0.02%
^Enewhere Custom Canvas, LLC
 
Textile Product Mills
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018
 
12.0

 
1.9

 
1.9

 
—%
^A & A Acquisition, Inc. dba A & A International
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/15/2018
 
100.0

 
14.8

 
14.9

 
0.01%

138
See accompanying notes to unaudited condensed consolidated financial statements.


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
^All American Printing
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
10/26/2032
 
69.8

 
37.6

 
39.8

 
0.02%
^Seo's Paradise Cleaners, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/19/2018
 
9.8

 
0.6

 
0.6

 
—%
^Margab, Inc. dba Smoothie King
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2017
 
44.0

 
5.7

 
5.7

 
—%
^RCB Enterprises, Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/18/2017
 
21.2

 
3.4

 
3.4

 
—%
^Timothy S. Strange dba Strange's Mobile Apperance Reconditioning Service
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
12/17/2017
 
8.4

 
0.8

 
0.8

 
—%
^Parties By Pat, Inc. and Jose M. Martinez Jr.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/11/2017
 
93.1

 
11.8

 
11.8

 
0.01%
^Tammy's Bakery, Inc. dba Tammy's Bakery
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/10/2017
 
71.8

 
9.9

 
10.0

 
—%
^Maria C. Sathre and David N. Sathre dba Black Forest Liquor Store
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
11/28/2017
 
18.6

 
2.2

 
2.2

 
—%
^MJ Mortgage & Tax Services, Inc.
 
Credit Intermediation and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
11/14/2017
 
6.9

 
0.4

 
0.4

 
—%
^Kings Laundry,LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
10/30/2017
 
64.5

 
7.1

 
7.1

 
—%
^Quality Engraving Services Inc. and Ian M. Schnaitman
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
10/17/2017
 
15.0

 
1.7

 
1.7

 
—%
^Louis B. Smith dba LAQ Funeral Coach
 
Transit and Ground Passenger Transportation
 
Term Loan
 
Prime plus 2.75%
 
9/15/2017
 
12.6

 
1.2

 
1.2

 
—%
^1911 East Main Street Holdings, Corp
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/18/2032
 
15.8

 
12.3

 
13.1

 
0.01%
^Metano IBC Services, Inc. and Stone Brook Leasing, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
8/17/2017
 
315.0

 
25.2

 
25.3

 
0.01%
^Mala Iyer, MD dba Child and Family Wellness Center
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
8/11/2017
 
50.0

 
4.8

 
4.9

 
—%
^Twietmeyer Dentistry PA
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2017
 
148.9

 
9.9

 
9.9

 
—%
^Water Works Laundromat, LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.25%
 
9/7/2027
 
267.3

 
184.0

 
187.1

 
0.09%
^Dave Kris, and MDK Ram Corp.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/5/2026
 
221.0

 
32.3

 
33.4

 
0.02%
^No Thirst Software LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/26/2017
 
6.8

 
0.2

 
0.2

 
—%
^CCIPTA, LLC
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
1/17/2017
 
47.0

 
0.2

 
0.2

 
—%

139
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Gill Express Inc. dba American Eagle Truck Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
1/5/2027
 
286.9

 
187.3

 
194.8

 
0.09%
^Spain Street LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/29/2017
 
63.0

 
0.9

 
0.9

 
—%
^Kyoshi Enterprises, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/29/2016
 
22.5

 
—

 
—

 
—%
^Nora A. Palma and Julio O Villcas
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/27/2017
 
56.3

 
0.1

 
0.1

 
—%
^Smooth Grounds, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
7.75%
 
12/31/2018
 
64.5

 
30.6

 
30.8

 
0.01%
^Fran-Car Corporation dba Horizon Landscape Management
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
3/3/2028
 
407.8

 
161.0

 
168.0

 
0.08%
^Head To Toe Personalized Pampering, Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
1/27/2031
 
52.0

 
9.0

 
9.5

 
—%
^Maxwell Place, LLC
 
Nursing and Residential Care Facilities
 
Term Loan
 
6.5%
 
12/31/2018
 
1,076.8

 
772.5

 
779.2

 
0.37%
^Christopher F. Bohon & Pamela D. Bohon
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
10/28/2026
 
14.2

 
3.2

 
3.4

 
—%
^Shree Om Lodging, LLC dba Royal Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/2/2030
 
333.3

 
64.1

 
67.4

 
0.03%
^Pedzik's Pets, LLC
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
3/31/2030
 
53.5

 
9.0

 
9.4

 
—%
^Nancy Carapelluci & A & M Seasonal Corner Inc.
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/1/2025
 
106.9

 
14.5

 
15.0

 
0.01%
^Moonlight Multi Media Production, Inc.
 
Other Information Services
 
Term Loan
 
5.3%
 
2/1/2025
 
19.7

 
3.3

 
3.4

 
—%
David M. Goens dba Superior Auto Paint & Body, Inc.
 
Repair and Maintenance
 
Term Loan
 
6%
 
8/26/2024
 
250.0

 
17.5

 
18.1

 
0.01%
^McCallister Venture Group, LLC and Maw's Vittles, Inc.
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/30/2029
 
75.0

 
11.6

 
12.1

 
0.01%
^Computer Renaissance dba Dante IT Services, Inc.
 
Electronics and Appliance Stores
 
Term Loan
 
Prime plus 3.75%
 
3/1/2018
 
100.0

 
1.6

 
1.6

 
—%
^Chong Hun Im dba Kim's Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.5%
 
2/27/2024
 
80.0

 
9.5

 
9.7

 
—%
Whirlwind Car Wash, Inc.
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2%
 
4/9/2029
 
333.3

 
65.5

 
65.8

 
0.03%
^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/5/2026
 
1,333.0

 
863.5

 
895.8

 
0.43%
^Center-Mark Car Wash, Ltd
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
5/18/2024
 
221.3

 
27.9

 
28.7

 
0.01%
^Shuttle Car Wash, Inc. dba Shuttle Car Wash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.25%
 
11/10/2028
 
109.8

 
17.2

 
17.5

 
0.01%

140
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Min Hui Lin
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/30/2028
 
134.3

 
17.5

 
18.2

 
0.01%
^Delta Partners, LLC dba Delta Carwash
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.5%
 
4/5/2029
 
280.9

 
42.5

 
44.0

 
0.02%
^Auto Sales, Inc.
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/17/2023
 
75.0

 
7.8

 
8.0

 
—%
^B & J Manufacturing Corporation and Benson Realty Trust
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2%
 
3/30/2021
 
250.0

 
18.8

 
18.8

 
0.01%
^RAB Services, Inc. & Professional Floor Installations
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.5%
 
1/31/2023
 
62.5

 
7.0

 
7.1

 
—%
^Ralph Werner dba Werner Transmissions
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/29/2021
 
26.6

 
2.3

 
2.4

 
—%
^Taste of Inverness, Inc. dba China Garden
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2%
 
6/29/2025
 
73.8

 
8.8

 
8.8

 
—%
^M. Krishna, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
3/20/2025
 
250.0

 
9.4

 
9.5

 
—%
^Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
9/14/2023
 
185.8

 
31.5

 
32.3

 
0.02%
^OrthoQuest, P.C.
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2%
 
3/12/2022
 
56.8

 
4.3

 
4.3

 
—%
^CPN Motel, L.L.C. dba American Motor Lodge
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
4/30/2024
 
379.0

 
30.8

 
31.1

 
0.01%
^Track Side Collision & Tire, Inc.
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025
 
44.8

 
4.9

 
5.0

 
—%
^Duttakrupa, LLC dba Birmingham Motor Court
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/8/2023
 
98.8

 
12.2

 
12.3

 
0.01%
^Deesha Corporation, Inc. dba Best Inn & Suites
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
2/14/2025
 
250.0

 
27.4

 
27.8

 
0.01%
^Maruti, Inc
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
11/25/2024
 
220.0

 
25.4

 
25.7

 
0.01%
Willington Hills Equestrian Center LLC
 
Animal Production and Aquaculture
 
Term Loan
 
Prime plus 2.75%
 
10/19/2022
 
85.0

 
12.8

 
13.1

 
0.01%
^LABH, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/27/2024
 
555.0

 
40.8

 
41.3

 
0.02%
^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/13/2023
 
68.8

 
7.0

 
7.2

 
—%
^Gain Laxmi, Inc. dba Super 8 Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
5/31/2023
 
202.5

 
20.0

 
20.2

 
0.01%
^Naseeb Corporation
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
3/31/2024
 
402.5

 
29.8

 
30.2

 
0.01%
^Stillwell Ave Prep School
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
1/14/2023
 
72.0

 
6.4

 
6.5

 
—%

141
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Karis, Inc.
 
Accommodation
 
Term Loan
 
Prime plus 2%
 
12/22/2023
 
148.8

 
13.4

 
13.4

 
0.01%
^Five Corners, Ltd.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/11/2019
 
85.0

 
4.7

 
4.8

 
—%
^Alyssa Corp dba Knights Inn
 
Accommodation
 
Term Loan
 
Prime plus 2.25%
 
9/30/2023
 
350.0

 
42.0

 
42.4

 
0.02%
^Bhailal Patel dba New Falls Motel
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2023
 
100.0

 
3.7

 
3.8

 
—%
^Pegasus Automotive, Inc.
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
12/23/2022
 
112.5

 
10.9

 
11.2

 
0.01%
^Delyannis Iron Works
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
12/8/2022
 
16.0

 
1.0

 
1.1

 
—%
^P. Agrino, Inc. dba Andover Diner
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
7/18/2021
 
150.0

 
8.9

 
9.1

 
—%
^Golden Elevator Co., Inc.
 
Support Activities for Agriculture and Forestry
 
Term Loan
 
Prime plus 2.75%
 
1/31/2022
 
50.0

 
0.4

 
0.4

 
—%
^RJS Service Corporation
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/20/2021
 
79.0

 
6.2

 
6.3

 
—%
Chez Rurene Bakery
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/20/2017
 
150.0

 
9.2

 
9.2

 
—%
Total Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
235,664.6

 
$
204,850.6

 
$
202,886.6

 
97.03%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing SBA Unguaranteed Investments (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
^200 North 8th Street Associates LLC and Enchanted Acres Fa
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/4/2028
 
$
468.8

 
$
469.3

 
$
441.3

 
0.21%
^214 North Franklin, LLC and Winter Ventures, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
11/29/2037
 
81.7

 
81.7

 
29.7

 
0.01%
^A + Quality Home Health Care, Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
8/1/2016
 
1.3

 
1.3

 
1.2

 
—%
Almeria Marketing 1, Inc.
 
Personal and Laundry Services
 
Term Loan
 
7.75%
 
10/15/2015
 
4.3

 
4.3

 
0.6

 
—%
^Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6.25%
 
9/18/2040
 
129.3

 
129.5

 
109.0

 
0.05%
^AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc.
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/14/2038
 
305.3

 
305.7

 
28.8

 
0.01%
AWA Fabrication & Construction, L.L.C.
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
6%
 
4/30/2025
 
34.7

 
34.8

 
19.4

 
0.01%
^B&B Fitness and Barbell, Inc. dba Elevations Health Club
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6%
 
6/22/2035
 
206.4

 
206.7

 
201.6

 
0.10%
Baker Sales, Inc. d/b/a Baker Sales, Inc.
 
Nonstore Retailers
 
Term Loan
 
6%
 
3/29/2036
 
177.0

 
177.4

 
80.2

 
0.04%
^Fieldstone Quick Stop LLC(OC) Barber Investments LLC (EPC) Thadius M B
 
Gasoline Stations
 
Term Loan
 
6%
 
9/30/2038
 
646.4

 
648.0

 
327.6

 
0.16%

142
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar D
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
8/15/2039
 
146.0

 
146.3

 
—

 
—%
Bwms Management, LLC
 
Food Services and Drinking Places
 
Term Loan
 
0%
 
3/1/2018
 
5.1

 
5.1

 
4.9

 
—%
^Chickamauga Properties, Inc., MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
12/22/2035
 
59.0

 
59.0

 
56.4

 
0.03%
^Chickamauga Properties, Inc. and MSW Enterprises, LLP
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
6.25%
 
10/19/2022
 
43.4

 
43.5

 
—

 
—%
^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
6/17/2021
 
285.5

 
286.2

 
43.1

 
0.02%
^Custom Software, Inc. a Colorado Corporation dba M-33 Access
 
Broadcasting (except Internet)
 
Term Loan
 
6.25%
 
4/30/2022
 
94.1

 
94.3

 
—

 
—%
^Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/31/2035
 
172.8

 
173.0

 
158.3

 
0.08%
^Danjam Enterprises, LLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
3/29/2023
 
64.7

 
64.8

 
58.6

 
0.03%
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
3/23/2037
 
2,646.6

 
2,673.3

 
2,609.4

 
1.25%
^DC Realty, LLC dba FOGO Data Centers
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6.25%
 
3/23/2022
 
178.9

 
179.3

 
169.4

 
0.08%
^Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025
 
63.9

 
64.0

 
49.6

 
0.02%
^Dill Street Bar and Grill Inc and WO Entertainment, Inc
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/27/2027
 
78.2

 
78.4

 
1.2

 
—%
Dr. Francis E. Anders, DVM
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
8/9/2015
 
1.6

 
1.6

 
1.5

 
—%
^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
9/26/2022
 
316.1

 
316.9

 
36.5

 
0.02%
^Europlast Ltd
 
Plastics and Rubber Products Manufacturing
 
Term Loan
 
6%
 
5/31/2023
 
155.2

 
155.6

 
114.8

 
0.05%
^Event Mecca LLC
 
Other Information Services
 
Term Loan
 
6%
 
4/10/2023
 
12.6

 
12.6

 
9.4

 
—%
^EZ Towing, Inc.
 
Support Activities for Transportation
 
Term Loan
 
6%
 
1/31/2023
 
123.2

 
123.5

 
107.1

 
0.05%
^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/30/2022
 
232.9

 
233.5

 
22.7

 
0.01%
^Gator Communications Group LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
4/25/2022
 
157.4

 
157.8

 
—

 
—%
^Gator Communications Group, LLC dba Harvard Printing Group
 
Printing and Related Support Activities
 
Term Loan
 
6.25%
 
3/27/2023
 
13.3

 
13.3

 
—

 
—%

143
See accompanying notes to unaudited condensed consolidated financial statements.


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
^Grand Manor Realty, Inc. & Kevin LaRoe
 
Real Estate
 
Term Loan
 
6%
 
2/20/2023
 
18.9

 
19.0

 
17.8

 
0.01%
Guzman Group,LLC
 
Rental and Leasing Services
 
Term Loan
 
6%
 
1/30/2016
 
189.7

 
190.2

 
154.5

 
0.07%
^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
6%
 
8/8/2039
 
176.7

 
177.1

 
156.6

 
0.07%
Harrelson Materials Management,Inc
 
Waste Management and Remediation Services
 
Term Loan
 
6%
 
6/24/2021
 
464.2

 
465.4

 
36.4

 
0.02%
^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2026
 
478.9

 
480.1

 
127.1

 
0.06%
^Home Again Restaurant LLC
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
6/30/2040
 
58.7

 
58.8

 
52.9

 
0.03%
^J Olson Enterprises LLC and Olson Trucking Direct, Inc.
 
Truck Transportation
 
Term Loan
 
6%
 
6/28/2025
 
647.5

 
649.1

 
226.8

 
0.11%
^J&M Concessions, Inc.dba A-1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
6.25%
 
3/3/2039
 
130.2

 
130.6

 
91.9

 
0.04%
^J&M Concessions Inc dba A 1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025
 
79.8

 
80.0

 
11.7

 
0.01%
Jenny's Wunderland, Inc.
 
Social Assistance
 
Term Loan
 
6%
 
6/29/2036
 
149.7

 
150.1

 
52.2

 
0.02%
^Karykion, Corporation dba Karykion Corporation
 
Professional, Scientific, and Technical Services
 
Term Loan
 
6%
 
6/28/2022
 
144.4

 
144.8

 
140.4

 
0.07%
^Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/29/2039
 
63.4

 
63.5

 
57.2

 
0.03%
Krishna of Orangeburg, Inc.
 
Accommodation
 
Term Loan
 
6%
 
2/20/2032
 
10.3

 
10.3

 
5.6

 
—%
^Kup's Auto Spa Inc
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
11/15/2038
 
373.2

 
374.1

 
351.8

 
0.17%
Kup’s Auto Spa, Inc.
 
Repair and Maintenance
 
Term Loan
 
6.25%
 
10/23/2025
 
59.1

 
59.3

 
55.7

 
0.03%
^Las Torres Development LLC dba Houston Event Centers
 
Real Estate
 
Term Loan
 
6%
 
8/27/2028
 
51.0

 
51.0

 
4.0

 
—%
^M and C Renovations Inc
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
10/31/2024
 
15.9

 
16.0

 
12.1

 
0.01%
^Matchless Transportation LLC dba First Class Limo
 
Transit and Ground Passenger Transportation
 
Term Loan
 
6.25%
 
8/3/2022
 
126.4

 
126.7

 
17.5

 
0.01%
^Milliken and Milliken, Inc. dba Milliken Wholesale Distribution
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
6%
 
6/10/2036
 
152.8

 
152.9

 
140.3

 
0.07%
^Mojo Brands Media, LLC
 
Broadcasting (except Internet)
 
Term Loan
 
6%
 
8/28/2023
 
723.1

 
725.0

 
486.9

 
0.23%
Morris Glass and Construction
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
3/7/2021
 
44.8

 
44.8

 
3.0

 
—%
^New Paltz Dental Care, PLLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
6%
 
6/19/2025
 
97.3

 
97.5

 
88.4

 
0.04%
Our Two Daughters L.L.C. dba Washington's Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
6/18/2026
 
169.8

 
170.3

 
22.7

 
0.01%
^E & I Holdings, LP & PA Farm Products, LLC
 
Food Manufacturing
 
Term Loan
 
6%
 
4/30/2030
 
1,227.7

 
1,230.8

 
436.4

 
0.21%

144
See accompanying notes to unaudited condensed consolidated financial statements.


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
^NB & T Services, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/27/2026
 
36.5

 
36.6

 
—

 
—%
Professional Systems, LLC and Professional Cleaning
 
Administrative and Support Services
 
Term Loan
 
6%
 
7/30/2020
 
132.0

 
132.1

 
7.2

 
—%
^Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC) d
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
9/30/2039
 
535.1

 
536.4

 
368.5

 
0.18%
^Seven Stars Enterprises, Inc. dba Atlanta Bread Company
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2018
 
18.8

 
18.8

 
18.5

 
0.01%
Sheikh M Tariq dba Selbyville Foodrite
 
Gasoline Stations
 
Term Loan
 
6%
 
3/13/2023
 
21.2

 
21.2

 
—

 
—%
^Shivsakti, LLC dba Knights Inn
 
Accommodation
 
Term Loan
 
6.25%
 
12/20/2032
 
69.7

 
69.9

 
62.9

 
0.03%
^STK Ventures Inc dba JP Dock Service & Supply
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
5/9/2037
 
31.6

 
31.6

 
2.3

 
—%
Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
11/7/2036
 
403.1

 
404.1

 
324.8

 
0.16%
Stormwise South Florida dba Stormwise Shutters
 
Specialty Trade Contractors
 
Term Loan
 
6%
 
8/26/2024
 
201.1

 
201.6

 
—

 
—%
Tequila Beaches, LLC dba Fresco Restaurant
 
Food Services and Drinking Places
 
Term Loan
 
6%
 
9/16/2021
 
0.2

 
0.2

 
0.2

 
—%
^The Conibear Corporation and Conibear Trucking, LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
12/5/2024
 
7.9

 
7.9

 
0.9

 
—%
The Lucky Coyote, LLC
 
Miscellaneous Manufacturing
 
Term Loan
 
6%
 
5/8/2017
 
6.2

 
6.2

 
2.3

 
—%
^Will Zac Management LLC dba Papa John's
 
Food Services and Drinking Places
 
Term Loan
 
6.25%
 
12/19/2024
 
42.4

 
42.5

 
41.3

 
0.02%
^Winter Ventures Inc and 214 N Franklin LLC
 
Nonstore Retailers
 
Term Loan
 
6%
 
4/29/2024
 
56.5

 
56.6

 
—

 
—%
^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
12/23/2024
 
149.1

 
149.3

 
—

 
—%
^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
6%
 
4/3/2029
 
134.4

 
134.5

 
—

 
—%
^Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
6.25%
 
6/30/2024
 
325.2

 
326.0

 
306.6

 
0.15%
^Wired LLC and Moulison North Corporation
 
Specialty Trade Contractors
 
Term Loan
 
6.25%
 
7/3/2024
 
137.9

 
138.3

 
13.8

 
0.01%
Woody's Trucking LLC
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
1/12/2026
 
11.7

 
11.7

 
3.1

 
—%
Total Non-Performing SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
14,879.8

 
$
14,933.6

 
$
8,584.6

 
4.11%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed Investments
 
 
 
 
 
 
 
 
 
$
250,544.4

 
$
219,784.2

 
$
211,471.2

 
101.14%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performing SBA Guaranteed Investments (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HMG Strategy, LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
12/14/2026
 
200.0

 
150.0

 
165.9

 
0.08%

145
See accompanying notes to unaudited condensed consolidated financial statements.


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
Techni-Pro Institute LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
12/15/2026
 
760.0

 
570.0

 
630.6

 
0.30%
Sempco, Inc.
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
12/15/2041
 
168.0

 
126.0

 
142.3

 
0.07%
Means Enterprises LLC dba FastFrame Frisco
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
12/16/2026
 
150.0

 
127.5

 
141.1

 
0.07%
New Image Building Services, Inc.dba The Maids Servicing Oakland &Maco
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
12/21/2026
 
175.0

 
131.3

 
145.2

 
0.07%
Jacliff Investments Inc. dba International health Technologies
 
Publishing Industries (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026
 
500.0

 
375.0

 
414.9

 
0.20%
Joshua L. Baker
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
12/23/2026
 
105.0

 
89.3

 
98.7

 
0.05%
Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/27/2041
 
1,679.5

 
1,259.6

 
1,420.2

 
0.68%
Fort Smith Wings Inc. dba Wing Stop
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/28/2026
 
130.0

 
110.5

 
122.2

 
0.06%
Elite Structures Inc
 
Fabricated Metal Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
10/27/2029
 
900.0

 
675.0

 
754.3

 
0.36%
Angelo Faia dba AVF Construction
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
5/27/2041
 
394.9

 
296.1

 
334.3

 
0.16%
Franklin Firm LLC dba Luv 2 Play
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
7/15/2041
 
691.5

 
518.7

 
585.4

 
0.28%
Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
6/23/2041
 
1,500.0

 
1,125.0

 
1,268.4

 
0.61%
Worldwide Estate, Inc. dba Washington Heights Manor
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
10/21/2041
 
900.0

 
467.3

 
527.7

 
0.25%
Bear Creek Entertainment LLC dba The Woods at Bear Creek
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
8/12/2041
 
1,750.0

 
837.3

 
944.0

 
0.45%
Nevey's LLC dba Stark Food III
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2041
 
1,175.5

 
739.7

 
833.0

 
0.40%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
12/24/2041
 
2,000.0

 
1,099.4

 
1,240.3

 
0.59%
Middlesex Auto Sales Corp
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
10/31/2041
 
500.0

 
142.5

 
160.9

 
0.08%
131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/3/2041
 
510.1

 
107.5

 
121.1

 
0.06%
Surgarloaf Concepts LLC dba Fat Biscuit
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/8/2026
 
675.0

 
287.6

 
317.9

 
0.15%
MIK LLC dba Firehouse Subs
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
11/9/2026
 
800.0

 
490.0

 
542.1

 
0.26%

146
See accompanying notes to unaudited condensed consolidated financial statements.


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
Roast Beef Levittown LLC dba Arby's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
12/13/2026
 
1,860.0

 
163.7

 
180.8

 
0.09%
Imaginarium Foods LLC,
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/28/2042
 
1,506.9

 
373.3

 
421.0

 
0.20%
Total SBA Guaranteed Performing Investments
 
 
 
 
 
 
 
 
 
$
19,031.4

 
$
10,262.3

 
$
11,512.3

 
5.51%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total SBA Unguaranteed and Guaranteed Investments
 
 
 
 
 
 
 
 
 
$
269,575.8

 
$
230,046.5

 
$
222,983.5

 
106.64%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Cyber Security Systems, LLC (6) (16)                                         
 
Data processing, hosting and related services.
 
50% Membership Interest
 
—%
 
—
 
—

 
—

 
—

 
—%
 
 
 
 
Term Loan
 
3%
 
 December 2014
 
1,120.0

 
381.0

 
—

 
—%
*Automated Merchant Services, Inc. (7) (16)
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—
 
—

 
—

 
—

 
—%
CDS Business Services, Inc. (8)                                                                                         
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Common Stock
 
—%
 
—
 
—

 
4,428.0

 
750.0

 
0.36%
 
 
 
 
Line of Credit
 
Prime Plus 2.5%
 
August 2018
 
2,690.0

 
2,690.0

 
2,690.0

 
1.29%
CrystalTech Web Hosting, Inc. (11)                                                                                         
 
Data processing, hosting and related services.
 
100% Common Stock
 
—%
 
—
 
—

 
8,434.0

 
20,109.0

 
9.62%
*Fortress Data Management, LLC (16)                                                                                    
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—
 
—

 
—

 
—

 
—%
Newtek Insurance Agency, LLC (13) (16)                                                                           
 
Insurance Carriers and Related Activities
 
100% Membership Interests
 
—%
 
—
 
—

 
—

 
2,500.0

 
1.20%
PMTWorks Payroll, LLC (9)                                                                                    
 
Data processing, hosting and related services.
 
100% Membership Interests
 
—%
 
—
 
—

 
725.1

 
860.0

 
0.41%
 
 
 
 
Term Loan
 
10%-12%
 
Various maturities through May 2018
 
1,685.0

 
1,685.0

 
1,185.0

 
0.57%
Secure CyberGateway Services, LLC (10) (16)                                                                                                                     
 
Data processing, hosting and related services.
 
66.7% Membership Interests
 
—%
 
—
 
—

 
—

 
—

 
—%
 
 
 
 
Term Loan
 
7%
 
 June 2017
 
2,400.0

 
300.0

 
—

 
—%
Small Business Lending, LLC. (12) (16)                                                                       
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—%
 
—
 
—

 
—

 
3,300.0

 
1.58%
Titanium Asset Management LLC (15) (16)
 
Administrative and Support Services
 
100% Membership Interest
 
—%
 
—
 
—

 
—

 
—

 
—%
 
 
 
 
Term Loan
 
3%
 
July 2017
 
2,200.0

 
660.4

 
508.1

 
0.24%

147
See accompanying notes to unaudited condensed consolidated financial statements.


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
ADR Partners, LLC dba banc-serv Partners, LLC (12)
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
100% Membership Interest
 
—%
 
—
 
—

 
5,260.3

 
5,400.0

 
2.58%
*Summit Systems and Designs, LLC (14) (16)                                                                     
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—
 
—

 
—

 
—

 
—%
Premier Payments LLC (11)
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—
 
—

 
16,438.0

 
21,000.0

 
10.04%
Universal Processing Services of Wisconsin, LLC (11) (16)                                           
 
Data processing, hosting and related services.
 
100% Membership Interest
 
—%
 
—
 
—

 
—

 
63,000.0

 
30.13%
Total Controlled Investments
 
 
 
 
 
 
 
 
 
$
10,095.0

 
$
41,001.8

 
$
121,302.1

 
58.01%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-control/Non-affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excel WebSolutions, LLC
 
Data processing, hosting and related services.
 
Term Loan
 
10%
 
September 2018
 
$
1,020.2

 
$
903.5

 
$
903.5

 
0.43%
 
 
 
 
Warrants
 
—%
 
—
 
—

 
—

 
—

 
—%
 
 
 
 
 
 
 
 
 
 
$
1,020.2

 
$
903.5

 
$
903.5

 
0.43%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in Money Market Funds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UBS Select Treasury Institutional Fund - 0.29% yield
 
 
 
 
 
 
 
 
 
$
9.6

 
$
9.6

 
$
9.6

 
—%
Peapack Gladstone High Yield IMMA - 0.30% yield
 
 
 
 
 
 
 
 
 
25.8

 
25.8

 
25.8

 
0.01%
Total Money Market Funds
 
 
 
 
 
 
 
 
 
$
35.4

 
$
35.4

 
$
35.4

 
0.02%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments
 
 
 
 
 
 
 
 
 
$
280,726.4

 
$
271,987.2

 
$
345,224.5

 
165.10%

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

148
See accompanying notes to unaudited condensed consolidated financial statements.


Table of Contents

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




149
See accompanying notes to unaudited condensed consolidated financial statements.


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

The Company has formed certain Taxable Subsidiaries, which are 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 RIC under 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.

150
Table of Contents


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 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 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.

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.

151
Table of Contents


Distributions

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

The Company considers all highly liquid 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. As of September 30, 2017, cash deposits in excess of insured amounts totaled $11,068,000. 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 September 30, 2017.
Restricted Cash

Restricted cash includes amounts due on 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 September 30, 2017, total restricted cash was $26,602,000.

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 2014 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 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 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 nine months ended September 30, 2017 and 2016, no U.S. federal excise taxes were due.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the net unrealized appreciation generated by the controlled investments held by the Taxable Subsidiaries. Such deferred tax liabilities amounted to $5,240,000 and $5,983,000 at September 30, 2017 and December 31, 2016, respectively, and are recorded as a deferred tax

152
Table of Contents

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.

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 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 does not believe this ASU will have a material impact 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

153
Table of Contents

instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the ASU changes the disclosure requirements for financial instruments. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.

Segments

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

Investments, all of which are in portfolio companies in the United States, consisted of the following at:
 
 
September 30, 2017
 
December 31, 2016
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Money market funds
 
$
9

 
$
9

 
$
35

 
$
35

Non-affiliate debt investments
 
286,769

 
281,224

 
230,950

 
223,887

Controlled investments
 
 
 
 
 
 
 
 
Equity
 
46,356

 
128,020

 
35,285

 
116,919

Debt
 
12,535

 
8,929

 
5,716

 
4,383

Total investments
 
$
345,669

 
$
418,182

 
$
271,986

 
$
345,224


In April 2017, the Company invested in 100% of the common stock of a new wholly-owned, controlled portfolio company, IPM. IPM provides consulting, design and implementation of technology solutions for enterprise and commercial clients. Total consideration for the investment was $11,120,000 and consisted of $1,000,000 in restricted shares of Newtek common stock, $8,752,000 in cash and $1,368,000 to be paid in cash in two equal installments in 2018 and 2019 based on IPM attaining specific EBITDA levels for 2017 and 2018. As of September 30, 2017, the fair value of the contingent consideration liabilities was $620,000 and is included in Accounts Payable, Accrued Expenses and other liabilities on the condensed consolidated statement of assets and liabilities.

During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed.
The following table shows the Company’s portfolio investments by industry at September 30, 2017 and December 31, 2016:

154
Table of Contents

 
 
September 30, 2017
 
December 31, 2016
 
 
Cost
 
Fair Value
 
Cost
 
Fair Value
Data processing, hosting and related services
 
$
29,583

 
$
103,605

 
$
29,010

 
$
107,180

Food Services and Drinking Places
 
28,314

 
27,752

 
21,941

 
21,702

Amusement, Gambling, and Recreation Industries
 
19,452

 
20,037

 
18,486

 
18,995

Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
18,302

 
19,966

 
12,909

 
12,649

Ambulatory Health Care Services
 
14,474

 
13,645

 
13,068

 
11,976

Repair and Maintenance
 
12,990

 
13,391

 
12,066

 
12,228

Professional, Scientific, and Technical Services
 
27,676

 
27,171

 
12,240

 
11,582

Accommodation
 
10,566

 
11,243

 
9,455

 
9,849

Specialty Trade Contractors
 
9,029

 
8,712

 
8,311

 
7,595

Merchant Wholesalers, Durable Goods
 
6,404

 
6,330

 
6,211

 
5,989

Truck Transportation
 
15,483

 
14,615

 
7,469

 
6,938

Food and Beverage Stores
 
5,187

 
5,160

 
5,221

 
5,194

Heavy and Civil Engineering Construction
 
4,530

 
4,430

 
4,328

 
4,209

Fabricated Metal Product Manufacturing
 
11,113

 
11,511

 
5,922

 
5,961

Administrative and Support Services
 
5,873

 
5,268

 
6,379

 
5,727

Social Assistance
 
6,869

 
7,013

 
4,903

 
4,905

Motor Vehicle and Parts Dealers
 
5,059

 
5,156

 
5,059

 
5,051

Food Manufacturing
 
9,437

 
7,507

 
5,596

 
4,873

Transit and Ground Passenger Transportation
 
3,482

 
3,302

 
1,836

 
1,703

Clothing and Clothing Accessories Stores
 
3,600

 
3,675

 
4,221

 
4,134

Personal and Laundry Services
 
10,333

 
10,861

 
4,255

 
4,206

Gasoline Stations
 
6,136

 
5,807

 
5,938

 
5,570

Printing and Related Support Activities
 
3,790

 
3,495

 
3,547

 
3,183

Insurance Carriers and Related Activities
 
833

 
3,366

 
1,126

 
3,631

Other
 
77,154

 
75,164

 
62,489

 
60,194

Total
 
$
345,669

 
$
418,182

 
$
271,986

 
$
345,224


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 nine months ended September 30, 2017 were as follows:

155
Table of Contents

Portfolio Company
 
Fair Value at December 31, 2016
 
Purchases (Cost)
 
Principal Received (Cost)
 
Net Realized Gains/(Losses)
 
Net Unrealized Gains/(Losses)
 
Fair Value at September 30, 2017
 
Interest and Other Income
 
Dividend Income
Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Universal Processing Services of Wisconsin, LLC
 
$
63,000

 
$
—

 
$
—

 
$
—

 
$
3,000

 
$
66,000

 
$
—

 
$
5,250

Premier Payments LLC
 
21,000

 
—

 
—

 
—

 
—

 
21,000

 
—

 
1,200

Newtek Technology Solutions, Inc.
 
20,109

 
—

 
(50
)
 
—

 
(4,059
)
 
16,000

 
—

 
—

International Professional Marketing, Inc. (1)
 
—

 
10,000

 
(1,000
)
 
—

 
—

 
9,000

 
6

 
550

banc-serv Partners, LLC
 
5,400

 
—

 
—

 
—

 
(2,000
)
 
3,400

 
—

 
—

CDS Business Services, Inc.
 
3,440

 
15,703

 
(10,498
)
 
—

 
4,750

 
13,395

 
376

 
200

Small Business Lending, LLC
 
3,300

 
—

 
—

 
—

 
(800
)
 
2,500

 
—

 
100

Newtek Insurance Agency, LLC
 
2,500

 
—

 
—

 
—

 
—

 
2,500

 
—

 
—

PMTWorks Payroll, LLC
 
2,045

 
1,000

 
—

 
—

 
(3,045
)
 
—

 
—

 
—

Titanium Asset Management LLC
 
508

 
—

 
(466
)
 
—

 
(42
)
 
—

 
6

 
—

Excel WebSolutions, LLC
 
904

 
—

 
(368
)
 
—

 
(47
)
 
489

 
56

 
—

SIDCO, LLC
 
—

 
2,665

 
—

 
—

 
—

 
2,665

 
2

 
—

Summit Systems and Designs, LLC
 
—

 
—

 
—

 
—

 
—

 
—

 
54

 
—

Secure CyberGateway Services, LLC
 
—

 
—

 
—

 
—

 
—

 
—

 
10

 
26

Total Controlled Investments
 
$
122,206

 
$
29,368

 
$
(12,382
)
 
$
—

 
$
(2,243
)
 
$
136,949

 
$
510

 
$
7,326


(1) Refer to Note 3 for discussion of investment in IPM.

Prior to January 2017, EWS was a non-control/non-affiliate investment. During the nine months ended September 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.

During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $8,800,000 and $2,320,000, respectively. Refer to Note 3.

Related Party Transactions

Note Payable - Related Parties

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

In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance bears interest at a rate equal to (a) LIBOR (with a floor of 0.50%) plus (b) 6% or at a rate equal to (y) the greater of the Prime Rate or 3.5% plus (z) 5%. At September 30, 2017, the Related Party RLOC bears interest at a rate of 7.31%. The Related Party RLOC has a maturity date of June 21, 2021. Outstanding borrowings from UPSW and NTS at September 30, 2017 were $20,541,000.
 
Interest expense incurred under the Related Party RLOC for the three months ended September 30, 2017 and 2016 was $378,000 and $19,000, respectively. Interest expense incurred under the Related Party RLOC for the nine months ended September 30, 2017 and 2016 was $418,000 and $196,000, respectively.


156
Table of Contents

Expenses Incurred from Controlled Portfolio Companies

The Company incurs expenses from certain controlled portfolio companies including managed technology services from NTS, loan processing and closing expenses from various related parties and payroll processing fees from NPS.
 
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Managed technology services
 
$
186

 
$
297

 
$
656

 
$
747

Loan related processing and auditing fees
 
101

 
6

 
139

 
21

Referral fees
 
54

 
8

 
82

 
8

Payroll processing
 
10

 
9

 
29

 
26

Total
 
$
351

 
$
320

 
906

 
802


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

Portfolio Company
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Universal Processing Services of Wisconsin, LLC
 
$
39

 
$
6

 
$
110

 
$
17

Small Business Lending, LLC
 
19

 
34

 
61

 
76

Newtek Insurance Agency, LLC
 
23

 
23

 
63

 
31

CDS Business Services, Inc.
 
15

 
25

 
47

 
59

Premier Payments LLC
 
10

 
19

 
35

 
40

PMTWorks Payroll, LLC
 
12

 
8

 
37

 
19

Titanium Asset Management LLC
 
6

 
—

 
13

 
—

Total
 
$
124

 
$
115

 
$
366

 
$
242


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

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 are charged at an arm’s length basis. The table below summarizes amounts charged to each controlled portfolio company for the three and nine months ended September 30, 2017 and 2016. The amounts are recorded as a credit to salaries and benefits in the condensed consolidated statements of operations.


157
Table of Contents

Portfolio Company
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Universal Processing Services of Wisconsin, LLC
 
$
101

 
$
112

 
$
314

 
$
347

Newtek Technology Solutions, Inc.
 
138

 
160

 
407

 
519

Newtek Insurance Agency, LLC
 
57

 
52

 
161

 
187

Small Business Lending, LLC
 
85

 
108

 
279

 
427

Premier Payments LLC
 
38

 
56

 
135

 
142

International Professional Marketing, Inc.
 
33

 
—

 
52

 
—

banc-serv Partners, LLC
 
52

 
58

 
150

 
58

CDS Business Services, Inc.
 
9

 
—

 
19

 
—

SIDCO, LLC
 
20

 
—

 
35

 
—

Summit Systems and Designs, LLC
 
—

 
5

 
10

 
15

Secure CyberGateway Services, LLC
 
—

 
—

 
2

 
—

PMTWorks Payroll, LLC
 
18

 
26

 
63

 
79

Total
 
$
551

 
$
577

 
$
1,627

 
$
1,774


NOTE 5—SERVICING ASSETS:
At September 30, 2017 and December 31, 2016, servicing assets are measured at fair value. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells.
The following table summarizes the fair value and valuation assumptions related to servicing assets at September 30, 2017 and December 31, 2016:
 
September 30, 2017
 
December 31, 2016
Fair Value
$
19,092

 
$
16,246

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

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:

158
Table of Contents

 
 
 
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 nine months ended September 30, 2017 or 2016. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

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

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

159
Table of Contents


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 September 30, 2017 and December 31, 2016:
 
Fair Value Measurements at September 30, 2017 Using:
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Investments in money market funds
$
9

 
$
9

 
$
—

 
$
—

SBA unguaranteed non-affiliate investments
257,136

 
—

 
—

 
257,136

SBA guaranteed non-affiliate investments
24,088

 
—

 
24,088

 
—

Controlled investments
136,949

 
—

 
—

 
136,949

Other real estate owned (1)
890

 
—

 
890

 
—

Servicing assets
19,092

 
—

 
—

 
19,092

Total assets
$
438,164

 
$
9

 
$
24,978

 
$
413,177

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities (2)
$
620

 
$
—

 
$
—

 
$
620


(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 September 30, 2017 includes $238,000 in unrealized appreciation on SBA unguaranteed non-affiliate investments, $2,243,000 in unrealized depreciation on controlled investments and $1,601,000 in unrealized depreciation on servicing assets.

 
Fair Value Measurements at December 31, 2016 Using:
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Investments in money market 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 investments and servicing assets measured at fair value using Level 3 inputs for the nine months ended September 30, 2017 and 2016:


160
Table of Contents

 
Nine Months Ended September 30, 2017
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Servicing Assets
 
Non-Control/Non-Affiliate Investments
 
Contingent Consideration Liabilities
Fair value, December 31, 2016
$
211,471

 
$
121,302

 
$
16,246

 
$
904

 
$
—

Net change in unrealized appreciation (depreciation)
238

 
(2,243
)
 
(1,601
)
 
—

 
 
Realized loss
(131
)
 
—

 
—

 
—

 
—

SBA unguaranteed non-affiliate investments, funded
62,185

 
—

 
—

 
—

 
—

Foreclosed real estate acquired
(212
)
 
—

 
—

 
—

 
—

Purchase of investments
—

 
29,366

 
—

 
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

Change in fair value of contingent consideration liabilities
—

 
—

 
—

 
—

 
(748
)
Purchase of loan portfolio
175

 
—

 
—

 
—

 
—

Net accretion of premium/discount
19

 
—

 
—

 
—

 
—

Return of investment
—

 
(50
)
 
—

 
—

 
—

Principal payments received on debt investments
(20,430
)
 
(12,330
)
 
—

 
(3,255
)
 
—

Additions to servicing assets
—

 
—

 
4,447

 
—

 
—

Fair value, September 30, 2017
$
257,136

 
$
136,949

 
$
19,092

 
$
—

 
$
620


 
Nine Months Ended September 30, 2016
 
SBA Unguaranteed Investments
 
Controlled Investments
 
Non-Control/Non-Affiliate Investments
 
Servicing Assets
Fair value, December 31, 2015
$
158,355

 
$
104,376

 
$
1,824

 
$
13,042

Net change in unrealized appreciation (depreciation)
869

 
10,362

 
(43
)
 
(1,341
)
Realized loss
(763
)
 
—

 
—

 
—

SBA unguaranteed non-affiliate investments, funded
51,567

 
—

 
—

 
—

Foreclosed real estate acquired
(387
)
 
—

 
—

 
—

Purchase of investments
—

 
6,275

 
1,020

 
—

Transfer from due from related parties
—

 
435

 
—

 
—

Transfer of Titanium Asset Management LLC from Non-control/Non-affiliate to Controlled Investments
—

 
1,146

 
(1,146
)
 
—

Purchase of loan from SBA
2,057

 
—

 
—

 
—

Principal payments received on debt investments
(15,074
)
 
(2,174
)
 
(635
)
 
—

Additions to servicing assets
—

 
—

 
—

 
3,918

Fair value, September 30, 2016
$
196,624

 
$
120,420

 
$
1,020

 
$
15,619


The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 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 September 30, 2017 and December 31, 2016.


161
Table of Contents

 
 
 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of September 30, 2017
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - performing loans
 
$
247,347

 
Discounted cash flow
 
Market yields
 
5.50
%
 
5.50
%
 
5.50
%
SBA unguaranteed non-affiliate investments - non-performing loans
 
$
9,789

 
Discounted cash flow
 
Market yields
 
5.53
%
 
5.53
%
 
5.53
%
Controlled equity investments (A)(B)
 
$
128,020

 
Market comparable companies
 
EBITDA multiples (B)
 
5.80x

 
3.50x

 
6.62x

 
 
 
 
Market comparable companies
 
Revenue multiples (B)
 
1.11x

 
0.22x

 
2.49x

 
 
 
 
Discounted cash flow
 
Weighted average cost of capital (B)
 
12.68
%
 
10.30
%
 
22.50
%
Controlled debt investments
 
$
8,441

 
Discounted cash flow
 
Market yields
 
6.62
%
 
4.75
%
 
10.00
%
 
 
$
488

 
Liquidation value
 
Asset value
 
N/A

 
N/A

 
N/A

Servicing assets
 
$
19,092

 
Discounted cash flow
 
Market yields
 
12.20
%
 
12.20
%
 
12.20
%
Contingent consideration liabilities
 
$
620

 
Discounted cash flow
 
Projected EBITDA and probability of achievement
 
N/A

 
N/A

 
N/A


(A) In determining the fair value of the Company’s controlled equity investments as of September 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.

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


162
Table of Contents

 
 
 
 
 
 
 
 
 
 
Range
 
 
Fair Value as of December 31, 2016
 
Valuation Techniques
 
Unobservable Input
 
Weighted Average
 
Minimum
 
Maximum
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
SBA unguaranteed non-affiliate investments - performing loans
 
$
202,887

 
Discounted cash flow
 
Market yields
 
5.50
%
 
5.50
%
 
5.50
%
SBA unguaranteed non-affiliate investments - non-performing loans
 
$
8,584

 
Discounted cash flow
 
Market yields
 
6.19
%
 
6.19
%
 
6.19
%
Controlled equity investments (A)(B)
 
$
116,919

 
Market comparable companies
 
EBITDA multiples (B)
 
6.10x

 
3.01x

 
6.99x

 
 
 
 
Market comparable companies
 
Revenue multiples (B)
 
1.21x

 
0.62x

 
3.08x

 
 
 
 
Discounted cash flow
 
Weighted average cost of capital (B)
 
12.57
%
 
11.00
%
 
15.30
%
Controlled debt investments
 
$
3,875

 
Discounted cash flow
 
Market yields
 
7.05
%
 
5.75
%
 
10.00
%
 
 
$
508

 
Liquidation value
 
Asset value
 
N/A

 
N/A

 
N/A

Non-control/non-affiliate debt investments
 
$
904

 
Liquidation value
 
Asset value
 
N/A

 
N/A

 
N/A

Servicing assets
 
$
16,246

 
Discounted cash flow
 
Market yields
 
12.20
%
 
12.20
%
 
12.20
%

(A) In determining 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.
 
NOTE 7—BORROWINGS:

At September 30, 2017 and December 31, 2016, the Company had borrowings comprised of the following:
 
September 30, 2017
 
December 31, 2016
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
 
Commitments
 
Borrowings Outstanding
 
Weighted Average Interest Rate
Capital One line of credit - guaranteed (1)
$
100,000

 
$
36,926

 
4.00
%
 
$
50,000

 
$
5,100

 
4.50
%
Capital One line of credit - unguaranteed (1)
—

 
29,220

 
5.00
%
 
—

 
—

 
—
%
Notes due 2021
40,250

 
39,027

 
7.00
%
 
40,250

 
38,767

 
7.00
%
Notes due 2022
8,324

 
7,915

 
7.50
%
 
8,324

 
7,853

 
7.50
%
Notes payable - related parties
50,000

 
20,541

 
7.31
%
 
38,000

 
1,400

 
7.67
%
Notes payable - Securitization trusts
97,607

 
95,376

 
4.41
%
 
120,945

 
118,122

 
3.79
%
Total
$
296,181

 
$
229,005

 
5.23
%
 
$
257,519

 
$
171,242

 
4.75
%

(1) Total combined commitments of the guaranteed and unguaranteed lines of credit are $100,000,000 at September 30, 2017 and $50,000,000 December 31, 2016.


163
Table of Contents

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

 
September 30, 2017
 
December 31, 2016
 
Notes Due 2022
 
Notes Due 2021
 
Notes Payable- Securitization Trusts
 
Notes Due 2022
 
Notes Due 2021
 
Notes Payable- Securitization Trusts
Principal
$
8,324

 
$
40,250

 
$
97,607

 
$
8,324

 
$
40,250

 
$
120,945

Unamortized deferred financing costs
(409
)
 
(1,223
)
 
(2,231
)
 
(471
)
 
(1,483
)
 
(2,823
)
Net carrying amount
$
7,915

 
$
39,027

 
$
95,376

 
$
7,853

 
$
38,767

 
$
118,122



At September 30, 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 September 30, 2017, the closing price of the Notes due 2022 was $26.36 per note, or $8,777,000. On September 30, 2017, the closing price of the Notes due 2021 was $25.50 per note, or $41,055,000. 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 September 30, 2017 and 2016 was $2,981,000 and $2,328,000, respectively. Total interest expense for the nine months ended September 30, 2017 and 2016 on all Company borrowings was $8,118,000 and $5,764,000, 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 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.

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

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


164
Table of Contents

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


NOTE 9—FINANCIAL HIGHLIGHTS:

The financial highlights for the Company are as follows:

 
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Per share data (1)
 
 
 
 
Net asset value at beginning of period
 
$
14.30

 
$
14.06

Net investment loss
 
(0.29
)
 
(0.52
)
Net realized gain
 
1.61

 
1.55

Net unrealized (depreciation) appreciation on investments
 
(0.05
)
 
0.82

Net unrealized depreciation on servicing assets
 
(0.09
)
 
(0.09
)
Change in provision for deferred taxes
 
0.04

 
(0.31
)
Net increase in net assets
 
1.22

 
1.45

Dividends to common stockholders from net investment income
 
(0.36
)
 
—

Distributions to common stockholders from capital gains
 
(0.84
)
 
(1.13
)
Total dividends paid
 
(1.20
)
 
(1.13
)
Stock-based compensation expense
 
0.05

 
0.02

Consolidation of Exponential Business Development Co., Inc.
 
—

 
(0.03
)
Accretive effect of stock offerings (issuing shares above NAV per share)
 
0.05

 
—

Accretive effect of shares issued in connection with investments (issuing shares above NAV per share)
 
0.01

 
—

Dilutive effect of purchase of vested stock for employee payroll tax withholding (purchase of shares above NAV)
 
(0.01
)
 
—

Impact of restricted stock awards
 
—

 
(0.11
)
Other (5)
 
(0.02
)
 
—

Net asset value at end of period
 
$
14.40

 
$
14.26

 
 
 
 
 
Per share market value at end of period
 
$
17.82

 
$
14.26

Total return based on market value (3)
 
19.62
 %
 
10.27
 %
Total return based on average net asset value (2)(3)(4)
 
12.12
 %
 
12.61
 %
Shares outstanding at end of period (in thousands)
 
17,750

 
14,594

 
 
 
 
 
Ratios/Supplemental Data:
 
 
 
 
Net assets at end of period
 
$
255,612

 
$
208,172

Ratio of expenses to average net assets (2)
 
19.2
 %
 
19.06
 %
Ratio of net investment loss to average net assets
 
(2.85
)%
 
(3.68
)%
Portfolio turnover
 
81.49
 %
 
89.03
 %
Average debt outstanding
 
$
200,124

 
$
154,640

Average debt outstanding per share
 
$
11.27

 
$
10.60

Asset coverage ratio
 
212
 %
 
217
 %


165
Table of Contents

(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.
        
The Board approves the issuance of shares of restricted stock to employees and directors pursuant to 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 September 30, 2017.

Restricted stock authorized under the plan (1)
 
1,500,000

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


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

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

As of September 30, 2017, there was $276,000 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 1.49 years as of September 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:


166
Table of Contents

 
 
 
 
Year Ended
 
 
Nine Months Ended September 30, 2017
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
Shares issued
 
2,587,500

 
—

 
2,300,000

 
2,530,000

Offering price per share
 
$
15.25

 
$
—

 
$
16.50

 
$
12.50

Proceeds net of underwriting discounts and offering costs
 
$
37,042

 
$
—

 
$
35,290

 
$
27,883


In January 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

On March 20, 2017, the Company entered into an ATM Equity Distribution Agreement. The ATM 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. On September 6, 2017, the Company entered into an amended ATM Equity Distribution Agreement for the purpose of adding D.A. Davidson as placement agent. During the nine months ended September 30, 2017, the Company sold 455,000 shares of its common stock at a weighted average price of $17.19 per share. Proceeds, net of offering costs and expenses were $7,666,000. As of September 30, 2017, there were 20,000 shares traded that had not settled and are not included in shares issued and outstanding on the face of the condensed consolidated balance sheet, but are included in the weighted average share outstanding in the condensed consolidated statement of operations and in the shares used to calculate net asset value per share. As of September 30, 2017, there were 2,445,000 shares of common stock available for sale under the ATM Equity Distribution Agreement.

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

Purchase date
 
Number of Shares Purchased
 
Price per Share
 
Total
March 10, 2016
 
10

 
$
12.34

 
$
123

March 18, 2016
 
20

 
$
12.45

 
249

March 18, 2016
 
30

 
$
12.48

 
375

March 23, 2016
 
10

 
$
11.88

 
119

Total
 
70

 
 
 
$
866


NOTE 12—EARNINGS PER SHARE:

167
Table of Contents


The following table summarizes the calculations for the net increase in net assets per common share for the three and nine months ended September 30, 2017 and 2016:
 
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Net increase in net assets
 
$
8,077

 
$
10,040

 
$
20,912

 
$
21,016

Weighted average shares outstanding
 
17,487

 
14,556

 
17,076

 
14,515

Net increase in net assets per common share
 
$
0.46

 
$
0.69

 
$
1.22

 
$
1.45


NOTE 13—DIVIDENDS AND DISTRIBUTIONS:

The Company’s dividends and distributions are recorded on the declaration date. The following table summarizes the Company’s dividend declarations and distributions during the nine months ended September 30, 2017 and 2016.

Date Declared
 
Record Date
 
Payment Date
 
Amount Per Share
 
Cash Distribution
 
DRIP Shares Issued
 
DRIP Shares Value
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
March 6, 2017
 
March 20, 2017
 
March 31, 2017
 
$
0.36

 
$
6,062

 
6

 
$
89

May 4, 2017
 
May 31, 2017
 
June 30, 2017
 
$
0.40

 
$
6,804

 
7

 
$
112

August 21, 2017
 
September 22, 2017
 
September 29, 2017
 
$
0.44

 
$
7,585

 
11

 
$
184

 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
February 25, 2016
 
March 22, 2016
 
March 31, 2016
 
$
0.35

 
$
4,708

 
29

 
$
362

June 9, 2016
 
June 20, 2016
 
June 30, 2016
 
$
0.35

 
$
4,985

 
7

 
$
83

September 7, 2016
 
September 20, 2016
 
September 30, 2016
 
$
0.43

 
$
6,152

 
6

 
$
77


During the nine months ended September 30, 2017, an additional 6,591 shares valued at $110,000 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 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 September 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.


168
Table of Contents

The summarized financial information of our unconsolidated subsidiary is as follows:
Balance Sheets - Universal Processing Services of Wisconsin, LLC
 
As of September 30, 2017
 
As of December 31, 2016
Current assets
 
$
8,014

 
$
11,522

Noncurrent assets
 
19,265

 
4,907

Total assets
 
$
27,279

 
$
16,429

Current liabilities
 
3,500

 
5,619

Noncurrent liabilities
 
30,499

 
16,432

Total liabilities
 
$
33,999

 
$
22,051

Total deficit
 
$
(6,720
)
 
$
(5,622
)
Statements of Income - Universal Processing Services of Wisconsin, LLC
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Revenue
 
$
27,119

 
$
26,466

 
$
82,879

 
$
76,947

Expenses
 
24,925

 
24,553

 
76,559

 
71,410

Income from operations
 
$
2,194

 
$
1,913

 
$
6,320

 
$
5,537

Interest (expense) income, net
 
(328
)
 
(384
)
 
(1,115
)
 
(1,048
)
Income before tax
 
$
1,866

 
$
1,529

 
$
5,205

 
$
4,489


The Company recorded the following related to its investment in UPSW:

 
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
Dividend income
 
$
1,750

 
$
1,700

 
$
5,250

 
$
4,500

Unrealized appreciation
 
$
2,000

 
$
5,900

 
$
3,000

 
$
9,600



169
Table of Contents

NOTE 15—SUBSEQUENT EVENTS:

Portfolio Company Developments

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

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

Common Stock

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



170
Table of Contents


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

Portfolio Company
 
Type of Investment (1)
 
Amount of Realized Gain (Loss)
 
Amount of Unrealized Appreciation (Depreciation)
 
Amount of Interest or Dividends Credited to Income (3)
 
Fair Value at December 31, 2016
 
Gross Additions (4)
 
Gross Reductions (5)
 
Fair Value at September 30, 2017
Advanced Cyber Security Systems, LLC
 
50% Membership Interest (2)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
Term Loan (3%) (2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automated Merchant Services, Inc.
 
100% Common Stock (2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDS Business Services, Inc.
 
100% Common Stock
 
—

 
4,750

 
200

 
750

 
4,750

 
—

 
5,500

 
 
Line of Credit (Prime + 2.5%) (6)
 
—

 
—

 
376

 
2,690

 
15,703

 
(10,498
)
 
7,895

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Technology Solutions, Inc.
 
100% Common Stock
 
—

 
(4,059
)
 
—

 
20,109

 
—

 
(4,109
)
 
16,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fortress Data Management, LLC
 
100% Membership Interest (2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newtek Insurance Agency, LLC
 
100% Membership Interest (2)
 
—

 
—

 
—

 
2,500

 
—

 
—

 
2,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PMTWorks Payroll, LLC
 
100% Membership Interest (2)
 
—

 
(860
)
 
—

 
860

 
—

 
(860
)
 
—

 
 
Term Loans (10%-12%) (2)
 
—

 
(2,185
)
 
—

 
1,185

 
1,000

 
(2,185
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secure CyberGateway Services, LLC
 
66.7% Membership Interest
 
—

 
—

 
26

 
—

 
—

 
—

 
—

 
 
Term Loan (7%)
 
—

 
—

 
10

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premier Payments LLC
 
100% Membership Interest
 
—

 
—

 
1,200

 
21,000

 
—

 
—

 
21,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small Business Lending, LLC
 
100% Membership Interest
 
—

 
(800
)
 
100

 
3,300

 
—

 
(800
)
 
2,500


171
Table of Contents

Portfolio Company
 
Type of Investment (1)
 
Amount of Realized Gain (Loss)
 
Amount of Unrealized Appreciation (Depreciation)
 
Amount of Interest or Dividends Credited to Income (3)
 
Fair Value at December 31, 2016
 
Gross Additions (4)
 
Gross Reductions (5)
 
Fair Value at September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
banc-serv Partners, LLC
 
100% Membership Interest
 
—

 
(2,000
)
 
—

 
5,400

 
—

 
(2,000
)
 
3,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International Professional Marketing, Inc. (8)
 
100% Common Stock
 
—

 
—

 
550

 
—

 
8,800

 
—

 
8,800

 
 
Line of Credit (Prime + 0.5%) (6)
 
—

 
—

 
6

 
—

 
1,200

 
(1,000
)
 
200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIDCO, LLC (8)
 
100% Membership Interest (2)
 
—

 
—

 
—

 
—

 
2,320

 
—

 
2,320

 
 
Line of Credit (Prime + 0.5%) (6)
 
—

 
—

 
2

 
—

 
345

 
—

 
345

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excel WebSolutions LLC (7)
 
Term Loans (10%)
 
—

 
(47
)
 
56

 
904

 
—

 
(415
)
 
489

 
 
50% Membership Interest (2)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Titanium Asset Management, LLC
 
100% Membership Interest (2)
 
—

 
(42
)
 
—

 
—

 
—

 
—

 
—

 
 
Term Loans (3%) (2)
 
—

 
—

 
6

 
508

 
—

 
(508
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summit Systems and Designs, LLC
 
100% Membership Interest (2)
 
—

 
—

 
54

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Universal Processing Services of Wisconsin, LLC
 
100% Membership Interest
 
—

 
3,000

 
5,250

 
63,000

 
3,000

 
—

 
66,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Controlled Investments
 
 
 
$
—

 
$
(2,243
)
 
$
7,836

 
$
122,206

 
$
37,118

 
$
(22,375
)
 
$
136,949


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

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

172
Table of Contents

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

173
Table of Contents

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

Forward-Looking Statements

The matters discussed in this report, as well as in future oral and written statements by management of Newtek Business Services Corp., that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this report include statements as to:
 
•
our future operating results;
•
our business prospects and the prospects of our prospective portfolio companies;
•
the impact of investments that we expect to make;
•
our informal relationships with third parties;
•
the dependence of our future success on the general economy and its impact on the industries in which we invest;
•
our ability to access debt markets and equity markets;
•
the ability of our portfolio companies to achieve their objectives;
•
our expected financings and investments;
•
our regulatory structure and tax status;
•
our ability to operate as a BDC and a RIC;
•
our ability to maintain our license under the SBA 7(a) program;
•
the adequacy of our cash resources and working capital;
•
the timing of cash flows, if any, from the operations of our portfolio companies;
•
the timing, form and amount of any dividend distributions;
•
the impact of fluctuations in interest rates on our business;
•
the valuation of any investments in portfolio companies, particularly those having no liquid trading market; and
•
our ability to recover unrealized losses.

The following discussion should be read in conjunction with our condensed consolidated financial statements and related notes and other financial information appearing elsewhere in this report. In addition to historical information, the following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under Item 1A-“Risk Factors” of Part II of this quarterly report on Form 10-Q, Item 1A-“Risk Factors” of our annual report on Form 10-K filed with the SEC on March 13, 2017 and under “Forward-Looking Statements” of this Item 2.
Executive 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 SMBs. Newtek's products and services include: Business Lending, including the SBA’s 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, The Secure Gateway, The Newtek Advantage®, personal and commercial 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.



174
Table of Contents


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

We are an internally-managed, closed-end, non-diversified investment company that has elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we have elected to be treated as a RIC under the Code beginning in our 2015 tax year ended December 31, 2015. As a BDC and a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code. We converted to a BDC in November 2014. As a result, previously consolidated subsidiaries are now recorded as investments in controlled portfolio companies, at fair value. NSBF is a consolidated subsidiary and originates loans under the SBA's 7(a) program.

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

NSBF has been granted 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

175
Table of Contents

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.

As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our small 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 small 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.

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 terms 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 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

176
Table of Contents

appreciation (depreciation) on investments or servicing assets, as appropriate, in the condensed 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.
Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBCS. Maximum borrowings under the Sterling Receivable and Inventory Facility are $15,000,000. The Sterling Receivable and Inventory Facility matures in February 2018. At September 30, 2017, total principal owed by NBCS was $10,041,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.

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

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


177
Table of Contents

Loan Portfolio Asset Quality and Composition
The following tables set forth distribution by business type of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Existing Business
 
1,139

 
$
216,247

 
$
190

 
81.6
%
Business Acquisition
 
182

 
35,237

 
194

 
13.3
%
Start-Up Business
 
134

 
13,648

 
102

 
5.1
%
Total
 
1,455

 
$
265,132

 
$
182

 
100.0
%
As of December 31, 2016
Distribution by Business Type
 
 
 
 
 
 
 
 
Business Type
 
# of Loans
 
Balance
 
Average Balance
 
% of Balance
Existing Business
 
921

 
$
177,430

 
$
193

 
80.7
%
Business Acquisition
 
169

 
30,454

 
180

 
13.9
%
Start-Up Business
 
138

 
11,900

 
86

 
5.4
%
Total
 
1,228

 
$
219,784

 
$
179

 
100.0
%
The following tables set forth distribution by borrower’s credit score of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
500 to 550
 
17

 
$
2,657

 
$
156

 
1.0
%
551 to 600
 
45

 
10,021

 
223

 
3.8
%
601 to 650
 
209

 
41,938

 
201

 
15.8
%
651 to 700
 
429

 
82,185

 
192

 
31.0
%
701 to 750
 
433

 
78,979

 
182

 
29.8
%
751 to 800
 
271

 
43,835

 
162

 
16.5
%
801 to 850
 
41

 
3,740

 
91

 
1.4
%
Not available
 
10

 
1,777

 
178

 
0.7
%
Total
 
1,455

 
$
265,132

 
$
182

 
100.0
%

178
Table of Contents

As of December 31, 2016
Distribution by Borrower Credit Score
 
 
 
 
 
 
 
 
Credit Score
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
500 to 550
 
17

 
$
2,036

 
$
120

 
0.9
%
551 to 600
 
38

 
6,748

 
178

 
3.1
%
601 to 650
 
160

 
32,912

 
206

 
15.0
%
651 to 700
 
344

 
64,923

 
189

 
29.5
%
701 to 750
 
372

 
67,006

 
180

 
30.5
%
751 to 800
 
250

 
39,600

 
158

 
18.0
%
801 to 850
 
40

 
4,124

 
103

 
1.9
%
Not available
 
7

 
2,435

 
348

 
1.1
%
Total
 
1,228

 
$
219,784

 
$
179

 
100.0
%
The following tables set forth distribution by primary collateral type of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
704

 
$
157,940

 
$
224

 
59.6
%
Machinery and Equipment
 
227

 
43,374

 
191

 
16.4
%
Residential Real Estate
 
307

 
25,255

 
82

 
9.5
%
Other
 
60

 
21,693

 
362

 
8.2
%
Accounts Receivable and Inventory
 
103

 
13,359

 
130

 
5.0
%
Liquid Assets
 
13

 
645

 
50

 
0.2
%
Furniture and Fixtures
 
12

 
1,822

 
152

 
0.7
%
Unsecured
 
29

 
1,044

 
36

 
0.4
%
Total
 
1,455

 
$
265,132

 
$
182

 
100.0
%
As of December 31, 2016
Distribution by Primary Collateral Type
 
 
 
 
 
 
 
 
Collateral Type
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Commercial Real Estate
 
589

 
$
133,263

 
$
226

 
60.6
%
Machinery and Equipment
 
201

 
37,426

 
186

 
17.0
%
Residential Real Estate
 
264

 
21,211

 
80

 
9.7
%
Other
 
45

 
13,822

 
307

 
6.3
%
Accounts Receivable and Inventory
 
80

 
12,075

 
151

 
5.5
%
Liquid Assets
 
15

 
667

 
44

 
0.3
%
Unsecured
 
23

 
883

 
38

 
0.4
%
Furniture and Fixtures
 
11

 
437

 
40

 
0.2
%
Total
 
1,228

 
$
219,784

 
$
179

 
100.0
%

179
Table of Contents

The following tables set forth distribution by days delinquent of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Current
 
1,289

 
$
226,704

 
$
176

 
85.5
%
1 to 30 days
 
54

 
13,126

 
243

 
5.0
%
31 to 60 days
 
23

 
5,058

 
220

 
1.9
%
61 to 90 days
 
—

 
—

 
—

 
—
%
91 days or greater
 
89

 
20,244

 
227

 
7.6
%
Total
 
1,455

 
$
265,132

 
$
182

 
100.0
%
As of December 31, 2016
Distribution by Days Delinquent
 
 
 
 
 
 
 
 
Delinquency Status
 
# of Loans
 
 Balance
 
Average Balance
 
% of Balance
Current
 
1,119

 
$
199,170

 
$
178

 
90.6
%
1 to 30 days
 
35

 
3,680

 
105

 
1.7
%
31 to 60 days
 
7

 
1,570

 
224

 
0.7
%
61 to 90 days
 
—

 
—

 
—

 
—
%
91 days or greater
 
67

 
15,364

 
229

 
7.0
%
Total
 
1,228

 
$
219,784

 
$
179

 
100.0
%
Consolidated Results of Operations

As a BDC and a RIC, we are subject to certain constraints on our operations, including limitations imposed by the 1940 Act and the Code.
Comparison of the three months ended September 30, 2017 and 2016
Investment Income
(in thousands)
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Change
Investment income:
 
 
 
 
 
Interest income
$
4,551

 
$
2,675

 
$
1,876

Dividend income
2,551

 
2,933

 
(382
)
Servicing income
1,794

 
1,551

 
243

Other income
705

 
692

 
13

Total investment income
$
9,601

 
$
7,851

 
$
1,750

Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $233,535,000 from $196,481,000 for the three months ended September 30, 2017 and 2016, respectively, combined with an increase in the Prime Rate from 3.50% to 4.25%. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period.

180
Table of Contents

Dividend Income
(in thousands)
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Change
Universal Processing Services of Wisconsin, LLC
$
1,750

 
$
1,700

 
$
50

Premier Payments LLC
375

 
450

 
(75
)
Newtek Technology Solutions, Inc.
—

 
330

 
(330
)
International Professional Marketing, Inc.
200

 
—

 
200

Small Business Lending, LLC
—

 
200

 
(200
)
banc-serv Partners, LLC
—

 
240

 
(240
)
CDS Business Services, Inc.
200

 
—

 
200

The Secure CyberGateway, LLC
26

 
13

 
13

Total dividend income
$
2,551

 
$
2,933

 
$
(382
)

Dividend income decreased $382,000 period over period. During the three months ended September 30, 2017, we earned $200,000 of dividend income from NBCS, as compared to zero during the three months ended September 30, 2016. We also earned $200,000 of dividend income from IPM, a new wholly-owned controlled portfolio company that we invested in on April 6, 2017. These increases were offset by decreases in dividend income earned from NTS, SBL and BSP. Dividend income is dependent on portfolio company earnings. Current quarter dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents the NSBF originated servicing portfolio and servicing income earned for the three months ended September 30, 2017 and 2016:
(in thousands):
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
 Change
Total NSBF originated servicing portfolio (1)
$
1,127,760

 
$
902,604

 
$
225,156

Total servicing income earned
$
1,794

 
$
1,551

 
$
243

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $791,536,000 and $645,906,000 for the three months ended September 30, 2017 and 2016, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $145,630,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from September 30, 2017 to September 30, 2016.
Other Income
Other income relates primarily to legal, packaging, and late fees earned from the origination of SBA 7(a) loans. The $13,000 increase period over period was related to an increase in legal and packaging fees earned.

181
Table of Contents

Expenses:
(in thousands)
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Change
Expenses:
 
 
 
 
 
Salaries and benefits
$
4,776

 
$
3,665

 
$
1,111

Interest
2,986

 
2,341

 
645

Depreciation and amortization
107

 
84

 
23

Professional fees
605

 
807

 
(202
)
Origination and servicing
1,433

 
1,537

 
(104
)
Change in fair value of contingent consideration liabilities
(748
)
 
—

 
(748
)
Other general and administrative costs
1,634

 
1,542

 
92

Total expenses
$
10,793

 
$
9,976

 
$
817

Salaries and Benefits

Salaries and benefits increased $1,111,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations.
Interest Expense
The following is a summary of interest expense by facility for the three months ended September 30, 2017 and 2016:
(in thousands)
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Change
Notes payable - Securitization trusts
$
1,294

 
$
929

 
$
365

Bank notes payable
341

 
393

 
(52
)
Notes due 2022
177

 
177

 
—

Notes due 2021
792

 
810

 
(18
)
Notes payable - related parties
378

 
19

 
359

Other
4

 
13

 
(9
)
Total interest expense
$
2,986

 
$
2,341

 
$
645


The increase in interest expense period over period is primarily related to interest from the Notes payable - Securitization trusts and Notes payable - related parties. The increase from Notes payable - Securitization trusts was the result of an additional securitization transaction completed in November 2016. The increase from Notes payable - related parties was related to the increase in the average outstanding balance during each period.

Change in Fair Value of Contingent Consideration

A portion of our investment in IPM consisted of contingent consideration based on IPM attaining specific EBITDA levels for 2017 and 2018. During the three months ended September 30, 2017, we reduced the contingent consideration liability by $748,000 based on the probability of IPM attaining specific EBITDA levels for 2017 and 2018.
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 September 30, 2017 and 2016 were $9,938,000 and $8,716,000, respectively. Realized losses were $87,000 and $777,000 during the three months ended September 30, 2017 and 2016, respectively. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

182
Table of Contents


Net Realized Gains on SBA Non-Affiliate Investments
 
Three Months Ended
 
September 30, 2017
 
September 30, 2016
(in thousands)
# of Debt Investments
 
$ Amount
 
# of Debt Investments
 
$ Amount
SBA non-affiliate investments originated during the quarter
122

 
$
103,635

 
96

 
$
85,895

SBA guaranteed non-affiliate investments sold during the quarter
117

 
$
68,461

 
98

 
$
66,453

Realized gains recognized on sale of SBA guaranteed non-affiliate investments
—

 
$
10,025

 
—

 
$
9,489

Average sale price as a percent of principal balance (1)
—

 
112.31
%
 
—

 
111.84
%

(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 September 30, 2017
 
Three Months Ended September 30, 2016
 
Change
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments
$
1,151

 
$
(78
)
 
$
1,229

Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments
(1,023
)
 
1,418

 
(2,441
)
Net unrealized (depreciation) appreciation on controlled investments
(500
)
 
4,638

 
(5,138
)
Change in benefit (provision) for deferred taxes on unrealized (depreciation) appreciation on investments
335

 
(2,028
)
 
2,363

Net unrealized loss in credits in lieu of cash and notes payable in credits in lieu of cash
—

 
(1
)
 
1

Total net unrealized (depreciation) appreciation on investments
$
(37
)
 
$
3,949

 
$
(3,986
)

Net unrealized appreciation (depreciation) 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 loans are sold.

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

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

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


183
Table of Contents

Net Unrealized Appreciation (Depreciation) on Controlled Investments

(in thousands)
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Change
Universal Processing Services of Wisconsin, LLC
$
2,000

 
$
5,852

 
$
(3,852
)
Newtek Technology Solutions, Inc.
(1,500
)
 
(1,305
)
 
(195
)
Premier Payments LLC
—

 
750

 
(750
)
CDS Business Services, Inc.
2,000

 
(700
)
 
2,700

PMTWorks Payroll, LLC
(1,000
)
 
(25
)
 
(975
)
banc-serv Partners, LLC
(2,000
)
 
—

 
(2,000
)
Titanium Asset Management LLC
—

 
66

 
(66
)
Total net unrealized (depreciation) appreciation on controlled investments
$
(500
)
 
$
4,638

 
$
(5,138
)

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

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

Provision for Deferred Taxes on Unrealized Appreciation of Investments

Certain consolidated subsidiaries are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the three months ended September 30, 2017, we recognized a benefit from deferred taxes of $335,000 related to unrealized depreciation of certain controlled portfolio company investments. During the three months ended September 30, 2016, we recognized a provision for deferred taxes of $2,028,000 related to unrealized appreciation of certain controlled portfolio company investments.
Comparison of the nine months ended September 30, 2017 and 2016
Investment Income
(in thousands)
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
Change
Investment income:
 
 
 
 
 
Interest income
$
13,689

 
$
7,655

 
$
6,034

Dividend income
7,326

 
7,719

 
(393
)
Servicing income
5,163

 
4,581

 
582

Other income
2,320

 
1,913

 
407

Total investment income
$
28,498

 
$
21,868

 
$
6,630

Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $220,367,000 from $182,637,000 for the nine months ended September 30, 2017 and 2016, respectively combined with an increase in the Prime Rate from 3.50% to 4.25%. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period. In addition, during the nine months ended September 30, 2017, we recognized $1,493,000 of interest income related to accrued non-performing interest owed by two borrowers who paid their accrued interest balance in full.

184
Table of Contents

Dividend Income
(in thousands)
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
Change
Universal Processing Services of Wisconsin, LLC
$
5,250

 
$
4,500

 
$
750

Premier Payments LLC
1,200

 
1,350

 
(150
)
Newtek Technology Solutions, Inc.
—

 
990

 
(990
)
International Professional Marketing, Inc.
550

 
—

 
550

Small Business Lending, LLC
100

 
600

 
(500
)
banc-serv Partners, LLC
—

 
240

 
(240
)
CDS Business Services, Inc.
200

 
—

 
200

The Secure CyberGateway, LLC
26

 
39

 
(13
)
Total dividend income
$
7,326

 
$
7,719

 
$
(393
)

Dividend income decreased $393,000 period over period. During the nine months ended September 30, 2017, we earned $200,000 of dividend income from NBCS and $550,000 of dividend income from IPM, a new wholly-owned controlled portfolio company that we invested in on April 6, 2017. Dividend income earned from UPSW increased $750,000 period over period. These increases were offset by decreases in dividend income earned from NTS, SBL and BSP. Dividend income is dependent on portfolio company earnings. Current period dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the nine months ended September 30, 2017 and 2016:
(in thousands):
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
 Change
Total NSBF originated servicing portfolio (1)
$
1,127,760

 
$
902,604

 
$
225,156

Total servicing income earned
$
5,163

 
$
4,581

 
$
582

(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $758,700,000 and $613,817,000 for the nine months ended September 30, 2017 and 2016, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $144,883,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from September 30, 2017 to September 30, 2016.
Other Income
Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA 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.

185
Table of Contents

Expenses:
(in thousands)
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
Change
Expenses:
 
 
 
 
 
Salaries and benefits
$
14,407

 
$
10,638

 
$
3,769

Interest
8,133

 
5,804

 
2,329

Depreciation and amortization
292

 
209

 
83

Professional fees
2,054

 
2,519

 
(465
)
Origination and servicing
4,086

 
4,190

 
(104
)
Change in fair value of contingent consideration liabilities
(748
)
 
—

 
(748
)
Other general and administrative costs
5,239

 
6,094

 
(855
)
Total expenses
$
33,463

 
$
29,454

 
$
4,009

Salaries and Benefits
Salaries and benefits increased $3,769,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations. The increase in salaries and benefits was also related to a $678,000 increase in stock-based compensation expense period over period.
Interest Expense
The following is a summary of interest expense by facility for the nine months ended September 30, 2017 and 2016:
(in thousands)
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
Change
Notes payable - Securitization trusts
$
4,096

 
$
2,808

 
$
1,288

Bank notes payable
700

 
840

 
(140
)
Notes due 2022
530

 
531

 
(1
)
Notes due 2021
2,372

 
1,389

 
983

Notes payable - related parties
418

 
196

 
222

Other
17

 
40

 
(23
)
Total interest expense
$
8,133

 
$
5,804

 
$
2,329


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

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

The increase from Notes payable - related parties was related to the increase in the average outstanding balance during each period.

Change in Fair Value of Contingent Consideration

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

186
Table of Contents

Other general and administrative costs include managed IT services, marketing, rent and other costs. In April 2016, we moved our headquarters to Lake Success, New York and vacated our space in West Hempstead, New York. During the nine months ended September 30, 2016, we incurred a loss of $1,487,000 related to the remaining liabilities under the lease. No such expense was incurred during the nine months ended September 30, 2017. This was offset by $979,000 of bad debt expense related to amounts owed from a related party.
Net Realized Gains and Net Unrealized Appreciation and Depreciation

Net realized gains or losses on investments are measured by the difference between the net proceeds from the repayment 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 nine months ended September 30, 2017 and 2016 were $27,537,000 and $22,536,000, respectively. Realized losses were $131,000 and $763,000 during the nine months ended September 30, 2017 and 2016, respectively. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Net Realized Gains on SBA Non-Affiliate Investments
 
Nine Months Ended
 
September 30, 2017
 
September 30, 2016
(in thousands)
# of Debt Investments
 
$ Amount
 
# of Debt Investments
 
$ Amount
SBA non-affiliate investments originated during the period
324

 
$
262,804

 
295

 
$
217,779

SBA guaranteed non-affiliate investments sold during the period
322

 
$
189,349

 
287

 
$
160,171

Realized gains recognized on sale of SBA guaranteed non-affiliate investments
—

 
$
27,668

 
—

 
$
23,280

Average sale price as a percent of principal balance (1)
 
 
112.21
%
 
 
 
112.09
%

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

Net Unrealized Appreciation (Depreciation) on Investments

(in thousands)
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
Change
Net unrealized appreciation on SBA guaranteed non-affiliate investments
$
1,201

 
$
690

 
$
511

Net unrealized appreciation on SBA unguaranteed non-affiliate investments
238

 
869

 
(631
)
Net unrealized (depreciation) appreciation on controlled investments
(2,243
)
 
10,362

 
(12,605
)
Change in benefit (provision) for deferred taxes on unrealized (depreciation) appreciation on investments
745

 
(4,469
)
 
5,214

Net unrealized depreciation on non-control/non-affiliate investments
—

 
(43
)
 
43

Net unrealized depreciation in credits in lieu of cash and notes payable in credits in lieu of cash
—

 
(2
)
 
2

Total net unrealized (depreciation) appreciation on investments
$
(59
)
 
$
7,407

 
$
(7,466
)

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


187
Table of Contents

Net Unrealized Appreciation (Depreciation) on Controlled Investments

(in thousands)
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
Change
Universal Processing Services of Wisconsin, LLC
$
3,000

 
$
9,552

 
$
(6,552
)
Newtek Technology Solutions, Inc.
(4,059
)
 
(1,305
)
 
(2,754
)
Premier Payments LLC
—

 
3,997

 
(3,997
)
CDS Business Services, Inc.
4,750

 
(925
)
 
5,675

PMTWorks Payroll, LLC
(3,045
)
 
(25
)
 
(3,020
)
banc-serv Partners, LLC
(2,000
)
 
—

 
(2,000
)
Small Business Lending, LLC
(800
)
 
(1,000
)
 
200

The Secure CyberGateway, LLC
—

 
2

 
(2
)
Titanium Asset Management LLC
(42
)
 
66

 
(108
)
Excel WebSolutions, LLC
(47
)
 
—

 
(47
)
Total net unrealized (depreciation) appreciation on controlled investments
$
(2,243
)
 
$
10,362

 
$
(12,605
)

Unrealized appreciation related to our investment in UPSW was related to an increase in EBITDA projections combined with a decrease in the discount rate during the nine months ended September 30, 2017. Unrealized appreciation related to our investment in NBCS was related to continued growth in its SBA 504 lending program and growth in its accounts receivable and inventory financing programs.

Unrealized depreciation related to our investment in NTS was related to weaker than projected financial performance. During the nine months ended September 30, 2017, we made an additional $1,000,000 debt investment in NPS. Due to NPS’ continued negative cash flows, we recorded an unrealized loss of $3,045,000 on our total investment in NPS. During the nine months ended September 30, 2017, the Company recorded a $2,000,000 unrealized loss on its investment in BSP to reflect the potential impact to the business and tradename as a result of the FBI investigation discussed in Note 8.


Provision for Deferred Taxes on Unrealized Appreciation of Investments

Certain consolidated subsidiaries 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 nine months ended September 30, 2017, we recognized a benefit from deferred taxes of $745,000 related to unrealized depreciation of certain controlled portfolio company investments. During the nine months ended September 30, 2016, we recognized a provision for deferred taxes of $4,469,000 related to unrealized appreciation of certain controlled portfolio company investments.

188
Table of Contents

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

The ATM 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 nine months ended September 30, 2017, we sold 455,000 shares of our common stock at a weighted average price of $17.19 per share. Proceeds, net of offering costs and expenses were $7,666,000. The Company may offer up to an additional 2,445,000 shares of common stock under the ATM Equity Distribution Agreement as of September 30, 2017.

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 $37,042,000.

Debt Offerings

In April 2016, the Company and the Trustee, entered into 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 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

189
Table of Contents

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

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

Notes Payable - Related Parties

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

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

190
Table of Contents

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

Securitization Transactions

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

Purchase 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 nine months ended September 30, 2017.
Cash Flows and Liquidity
As of September 30, 2017, the Company’s unused sources of liquidity consisted of $20,966,000 available through the Capital One facility; $13,159,000 available through notes payable with related parties; $3,915,000 in unrestricted cash and $9,000 in money market funds.


191
Table of Contents

Restricted cash of $26,602,000 as of September 30, 2017 is primarily held in NSBF. The majority, or $25,851,000 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 voluntary agreement with SBA.

The Company generated and used cash as follows:
(in thousands)
Nine months ended September 30, 2017
 
Nine months ended September 30, 2016
Net cash used in operating activities
$
(76,139
)
 
$
(23,048
)
Net cash used in investing activities
(345
)
 
(294
)
Net cash provided by financing activities
78,348

 
21,752

Net increase (decrease) in cash and cash equivalents
1,864

 
(1,590
)
Cash and cash equivalents, beginning of period
2,051

 
4,308

Cash and cash equivalents, end of period
$
3,915

 
$
2,718

During the nine months ended September 30, 2017, operating activities used cash of $76,139,000, 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) $262,804,000 of SBA 7(a) loan investments (iii) $15,703,000 of advances to NBCS under a revolving line of credit (iv) $9,952,000 of cash paid 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) an increase in restricted cash of $4,585,000. These decreases were offset by (i) $217,016,000 of proceeds from the sale of SBA 7(a) investments and (ii) $35,914,000 of principal payments received consisting of $20,327,000 from SBA non-affiliate investments, $3,255,000 from non-control/non-affiliate investments and $12,332,000 from controlled investments, including $10,497,000 from NBCS.
Net cash provided by financing activities was $78,348,000 consisting primarily of (i) net proceeds $37,042,000 from the sale of 2,857,500 shares of common stock, (ii) net proceeds of $7,666,000 from the sale of 455,000 shares of common stock under the ATM Equity Distribution Agreement, (iii) net borrowings of $61,046,000 from our Capital One lines of credit and (iv) $19,141,000 of proceeds under the related party revolving line of credit. These increases were offset by (i) $20,836,000 of dividend payments and (ii) $23,414,000 of principal payments related to securitizations.
Contractual Obligations
The following chart represents the Company’s significant obligations and commitments as of September 30, 2017:
(in thousands)
Payments due by period
Contractual Obligations
Total
 
Less than 1 year
 
1-3 years
 
3-5 years
 
More than 5 years
Bank notes payable
$
66,146

 
$
36,926

 
$
29,220

 
$
—

 
$
—

Securitization notes payable (1)
97,607

 
—

  
—

  
—

 
97,607

Notes due 2022 (1)
8,324

 
—

 
—

 
8,324

 
—

Notes due 2021 (1)
40,250

 
—

 
—

 
40,250

 
—

Notes payable - related parties
20,541

 
—

 
—

 
20,541

 
—

Employment agreements
600

 
300

 
300

 
—

 
—

Operating leases (2)
12,565

 
502

 
3,153

 
2,298

 
6,612

Totals
$
246,033

 
$
37,728

  
$
32,673

  
$
71,413

 
$
104,219

(1) Amounts represent principal only and are not shown net of unamortized debt issuance costs. See Note 7.
(2) Minimum payments have not been reduced by minimum sublease rentals of $550,000 due in the future under non-cancelable subleases.

192
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. 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.

193
Table of Contents


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 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.

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.

194
Table of Contents


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 the Code 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 NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not part of the RIC. In order to maintain its RIC tax treatment, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its shareholders at least 90% of investment company taxable income, as defined by the Code, for each tax year. The Company intends to make the requisite distributions to its shareholders, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to its shareholders 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 nine months ended September 30, 2017 and 2016, no U.S. federal excise taxes were due.

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

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

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

195
Table of Contents

ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.
Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of September 30, 2017.
Recent Developments

Portfolio Company Developments

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

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

Common Stock

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

 
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We consider the principal types of risk in our investing activities to be fluctuations in interest rates and loan portfolio valuations and the availability of the secondary market for our SBA loans. Risk management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.
NSBF primarily lends at an interest rate of prime, which resets on a quarterly basis, plus a fixed margin. The Capital One revolver lines as well as the securitization notes are on a prime plus a fixed factor basis. As a result, the Company believes it has matched its cost of funds to its interest income in its financing activities. However, because of the differential between the amount lent and the smaller amount financed a significant change in market interest rates will have a material effect on our income. In periods of sharply rising interest rates, our cost of funds will increase at a slower rate than the interest income earned on the loans we have made; this should improve our net investment income, holding all other factors constant. However, a reduction in interest rates will result in the Company experiencing a reduction in investment income; that is, its interest income will decline more quickly than interest expense resulting in a net reduction of benefit to investment income.
NSBF depends on the availability of secondary market purchasers for the guaranteed portions of SBA loans and the premium received on such sales to support its lending operations. At this time the secondary market for the guaranteed portions of SBA loans is robust but during the 2008 and 2009 financial crisis the Company had difficulty selling its loans for a premium; although not expected at this time, if such conditions did recur NSBF would most likely cease making new loans and could experience a substantial reduction in profitability.
We do not have significant exposure to changing interest rates on invested cash (includes cash and cash equivalents, restricted cash and money market funds) which was approximately $30,527,000 at September 30, 2017. We do not purchase or hold

196
Table of Contents

derivative financial instruments for trading purposes. All of our transactions are conducted in U.S. dollars and we do not have any foreign currency or foreign exchange risk. We do not trade commodities or have any commodity price risk.
We believe that we have placed our demand deposits, cash investments and their equivalents with high credit-quality financial institutions. Invested cash is held almost exclusively at financial institutions of high credit quality. The Company invests cash not held in interest free checking accounts or bank money market accounts mainly in U.S. Treasury only money market instruments or funds and other investment-grade securities. As of September 30, 2017, cash deposits in excess of insured amounts totaled approximately $11,068,000.

197
Table of Contents

ITEM 4. CONTROLS AND PROCEDURES.

As of the period covered by this report, we, including our chief executive officer and chief accounting officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on our evaluation, our management, including the chief executive officer and chief accounting officer, concluded that our disclosure controls and procedures were effective in timely alerting management, including the chief executive officer and chief accounting officer, of material information about us required to be included in our periodic SEC filings. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, are based upon certain assumptions about the likelihood of future events and can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.


198
Table of Contents

PART II - OTHER INFORMATION
ITEM 1. 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.

ITEM 1A. RISK FACTORS.

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

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

In connection with the investment in IPM, the Company issued 60,490 restricted common shares in a private transaction as a portion of the consideration, as discussed herein.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.
Number
 
Description
 
 
 
 
 
 
 
 
 
 
 
 
 

199
Table of Contents

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



200