Newtek Business Services, Inc. Completes All Requirements in Alabama Certified Capital Company Program

Wilshire Alabama Partners recently received a CAPCO program investment:

Newtek Business Services, Inc. (Nasdaq: NEWT), The Small Business Authority, announced that its Certified Capital Company (Capco) subsidiary operating in Alabama, Wilshire Alabama Partners, LLC, has received from the State of Alabama official confirmation that it has completed all investment and other requirements under the program and is no longer subject to supervision or regulation because the CAPCO invested 100% of its certified capital in qualified businesses operating in Alabama.  The Company will meet on going reporting requirements and plans to explore the steps for the liquidation and dissolution of the entity.  The Company has now fully satisfied its regulatory obligations in three of the eight jurisdictions in which it has participated.

This development is consistent with Newtek’s goal of concluding the investment goals in the five remaining Capco states.  Thus far, three other Capcos have concluded operations and have been liquidated and a fifth has reached its full investment level and is awaiting conclusion of the final regulatory review.

Barry Sloane, Chairman, President and Chief Executive Officer of the Company noted that “Newtek is pleased to have reached this additional mile stone in satisfying state regulators and its participation in the certified capital company business dating back to 1998.  We have an exemplary record of compliance as a Capco across our history of 16 Capcos in 8 states and look forward to completing our investment cycles.

About Newtek Business Services, Inc.

Newtek Business Services, Inc., The Small Business Authority, is a direct distributor of a wide range of business services and financial products to the small- and medium-sized business market under the Newtekä brand. Since 1999, Newtek has helped small- and medium-sized business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses and to compete effectively in today’s marketplace. Newtek currently provides its services to over 100,000 business accounts and has positioned the NewtekÔ brand as a one-stop-shop provider of its business services. According to the U.S. Small Business Administration, there are over 27.5 million small businesses in the United States, which in total represent 99.7% of all employer firms.

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