The Small Business Authority Index for June 2011 Shows a Spike in SBA 7(a) Gross Loan Approvals

NEW YORK, July 20, 2011 /PRNewswire/ -- Newtek Business Services, NASDAQ: NEWT, The Small Business Authority, announced the release of the SB Authority Index for June 2011 reaching 106.07 points.  The SB Authority Index is up 1.17% from May 2011. Approved SBA loan volumes, the Russell microcap index and Retail Sales caused the increase in the index.  The other five components of the index are ADP national employment report, Newtek's proprietary merchant processing volume, estimated small business default loan rate, GLS default rate and the prime rate.

President and CEO, Barry Sloane said, "We continue to see mixed results from the small business economy.  We also need to remind our audience that our index is not a final sales number and is made up of eight different economic factors that directly effect small businesses.  In the month of June, SBA loan guaranty volume jumped from the prior year as we have steadied loan demand this year and in 2010 the SBA had small businesses waiting for greater subsidies available under the Obama Recovery plan.  We have also observed greater retail sales growth this year versus last year.  We continue to be concerned with the business climate but we welcome Washington's effort to reduce the federal deficit and uncertainty for small businesses and their future."

About Newtek Business Services, Inc.

Newtek Business Services, The Small Business Authority, provides the following products and services:

• Electronic Payment Processing: eCommerce, electronic solutions to accept non-cash payments, including credit and debit cards, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs.
• Managed Technology Solutions (Cloud Computing): Full-service web host, which offers eCommerce solutions, shared and dedicated web hosting and related services including domain registration and online shopping cart tools.
• eCommerce:  A suite of services that enable small businesses to get up and running on-line quickly and cost effectively, with integrated web design, payment processing and shopping cart services.
• Business Lending: Broad array of lending products including SBA 7(a) and SBA 504 loans.  
• Insurance Services: Commercial and personal lines of insurance, including health and employee benefits in all 50 states, working with over 40 insurance carriers.
• Web Services: Customized web design and development services.
• Data Backup, Storage and Retrieval: Fast, secure, off-site data backup, storage and retrieval designed to meet the specific regulatory and compliance needs of any business.
• Accounts Receivable Financing: Receivable purchasing and financing services.
• Payroll: Complete payroll management and processing services.  

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 Newtek™ 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 provides its services to over 100,000 business accounts and has positioned the Newtek™ brand as a one-stop-shop provider of such 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.

Note Regarding Forward Looking Statements

Statements in this press release including statements regarding Newtek's beliefs, expectations, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause Newtek's actual results to differ from management's current expectations, are contained in Newtek's filings with the Securities and Exchange Commission and available through http://www.sec.gov.

http://www.newtekbusinessservices.com

Rubenstein Public Relations
Telephone: (212) 843-9335
Contact: Liz Petrova / [email protected]

SOURCE Newtek Business Services