Newtek Business Services : Material Definitive Agreement (Form 8-K)

Entry Into a Material Definitive Agreement.

On September 21, 2021, NBL SPV III, LLC (the "Borrower"), a wholly-owned subsidiary of Newtek Business Lending, LLC ("NBL"), a wholly owned portfolio company of Newtek Business Services Corp. (the "Company" and together with NBL and the Borrower, the "Loan Parties"), entered into a Mortgage Warehouse Loan and Security Agreement (the "Loan Agreement"), by and between the Borrower and One Florida Bank (the "Lender") and delivered a related Revolving Line of Credit Promissory Note (the "Note"). Pursuant to the terms of the Loan Agreement and the Note, the Lender established a line of credit in favor of the Borrower in the maximum principal amount of Twenty Million and No/100 Dollars ($20,000,000) (the "Facility," and all agreements, documents and instruments executed or delivered by the Loan Parties in connection with the Facility, documents, including without limitation the Loan Agreement, the Note and any guarantees of the Facility delivered by any of the Loan Parties, the "Loan Documents") that is intended to be used to fund the origination of SBA 504 loans. Outstanding amounts under the Facility shall bear interest at the rate of the prime rate then in effect plus one percent (1%), and the Facility will mature on September 30, 2023.

The Loan Agreement also specifies certain customary events of default, such as a breach by any of the Loan Parties of their respective representations, covenants or obligations under the Loan Documents, the insolvency or bankruptcy of any of the Loan Parties or the default by Borrower of any other indebtedness, pursuant to which the Lender could require immediate repayment by the Borrower of all outstanding amounts under the Facility.

Additionally, on that same date, the Company entered into a Guaranty (the "Guaranty") in favor of the Lender. Pursuant to the terms of the Guaranty, the Company has unconditionally guaranteed the prompt and unconditional payment of all of the Borrower's obligations under the Loan Documents, including all advances under the Loan Agreement, which payment obligations could be triggered by, among other things, an event of default under the Loan Agreement or the breach by the Company of any its representations, covenants or obligations under the Loan Documents or the insolvency or bankruptcy of the Company.

The foregoing summaries of the Loan Agreement, the Note and the Guaranty do not purport to be complete and are subject to, and qualified in their entirety by, the complete text of the Loan Agreement, the Note and the Guaranty, which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.