Show Me the Money: Financing Strategies for Small Business

Business Matchmaking Event, Houston

December 10, 2003

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Newtek Small Business FinanceNewtek Small Business Finance

• A non-bank lender specializing in issuing SBA loans in all 50 states.

• Exclusively focused on lending to small businesses.

• Open to lending in all business categories allowable under SBA policy.

• One-of-a-kind online loan application with quick pre-qualification.

• Experienced, courteous and accessible staff to provide high quality support to clients as they apply for a loan.

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SBA Loan CharacteristicsSBA Loan Characteristics

• Loan amounts up to $2 million

• Longer amortization (7 to 25 years)

• Reasonable collateral requirements

• Competitive interest rates (variable rate with a spread over Prime)

• No balloon payments

• Will consider financing startups

• Wide range of acceptable uses of proceeds including to purchase commercial real estate, machinery, equipment and inventory, as well as to refinance debt and fund working capital and business acquisitions

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General Application RequirementsGeneral Application Requirements

• Business plan (history of business and owners)

• Loan proposal, including detailed use of proceeds and anticipated benefits of the loan

• Personal tax returns – each owner for the last two years

• Business tax returns – for the last three years (if applicable)

• Profit and loss projections

• Current interim business financial statements

• Description of the collateral offered as security

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Lender Evaluation CriteriaLender Evaluation Criteria

• Clean personal credit history for each owner

• Clean credit history for the business

• Ability to make monthly interest and principal payments

• Cash injection by the borrower

• Relevant industry experience for each owner

• Adequacy of the collateral in relation to the loan

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Menu of Newtek ServicesMenu of Newtek Services

Small Business Lending

Electronic Payment Processing

Outsourced Bookkeeping and Controller Services

Tax Filing, Preparation and Advisory Services