PRESENTATION TO PRESENTATION TO MORGAN STANLEYMORGAN STANLEY

We Provide You With the Tools toManage and Grow Your Business

ABOUT USABOUT US

Newtek Business Services, Inc. is a distributor of business and financialservices to the small and medium-sized business (SMB) market.

Founded in 1998 by Chairman and CEO, Barry Sloane

Publicly traded (NASDAQ: NEWT)

Employs more than 250 people across the country

Corporate headquarters in New York City

Services approximately 100,000 business customers

Turnkey solution for offering business services

We Do It Better.

ABOUT USABOUT US

Through its Business Lending and Business Credit divisions, Newtekprovides capital to businesses throughout the U.S.

Meets the needs of companies that are temporarily unable to secure conventional financing

Provides end-to-end financing solutions, including: Accounts Receivable Financing Merchant Cash Advance Accounts Receivable Management Services Small Business Administration (SBA) Loans

Has particular experience in the small business market, affording us the ability to effectively, identify, evaluate, and structure financial needs unique to small businesses

Non-bank; non-depository entities

We Do It Better.

Accounts Receivable Financing - an asset-based financing arrangement in which companies use their receivables as collateral in exchange for capital

Merchant Cash Advance - a financing arrangement in which companies receive capital against their future credit card sales

A/R Management Services - billing, lockbox collection, payment processing, monitoring and reporting services

SBA Loans – term loans provided under the SBA 7(a) and 504 guaranteed loan program

SUITE OF SERVICESSUITE OF SERVICES

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Accounts Receivable Financing is a means for clients to accelerate cashflow by financing their open invoices. Clients receive cash in advance ofpayments due from their customers.

Program Highlights

Business-to-Business and Business-to-Consumer accounts receivable are eligible for financing

Advances of up to 90% of invoice value

Facilities ranging in size from $50,000 to $1,000,000; higher with participation

Greater flexibility than conventional financing; no restrictive covenants

Competitive pricing; including prime rate-based options

Ability to fund within two weeks of application

ACCOUNTS RECEIVABLE FINANCINGACCOUNTS RECEIVABLE FINANCING

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Merchant Cash Advance is the purchase of a business’ future credit card sales.Businesses receive capital upfront, and agree to have a set percentage of their futurecredit card sales deducted from their daily deposits, until the agreed upon purchaseamount is satisfied.

Program Highlights

There is no “interest rate”; instead the business agrees to payback a predetermined amount

There is no “term”; instead payback time ebbs and flows with the business’ processing volume

Provides businesses who are ineligible for traditional financing with capital

No application fees or closing costs

Businesses can process their credit cards through Newtek

Funding is available quickly and requires little paperwork

MERCHANT CASH ADVANCEMERCHANT CASH ADVANCE

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Our Accounts Receivable Management Services provide businesses withprofessional back-office support, without the overhead.

Billing - a complete process of paper-based billing services, including printing and mailing of customizable statements, advertisement stuffers and promotional messages

Lockbox Collection - clients can have customer payments mailed to a special PO Box instead of their business address

Payment Processing - using the latest technology in Remote Deposit Capture, Newtek can direct customer payments to any account designated by clients

Receivables Monitoring & Reporting - in concert with the above, we provide detailed monitoring of receivables and a variety of reporting, including detailed or summary aging reports, and delinquency reporting

A/R MANAGEMENT SERVICESA/R MANAGEMENT SERVICES

We Do It Better.

Program Highlights

Reduces over-head by eliminating the need to have accounts receivable or billing personnel

Alleviates worry about computer backups, or the security of data

Saves valuable time by eliminating the need to print and mail statements in-house

Enhanced monitoring of receivables improves collection practices

Lockbox services allow for centralized processing of payments; no need to send employees to the bank to make deposits

Payments can be deposited into any account designated by clients

Improves over-all cash flow

A/R MANAGEMENT SERVICESA/R MANAGEMENT SERVICES

We Do It Better.

SBA loans are term loans that may be used for a variety of businesspurposes, including acquiring or expanding an existing business,purchasing real estate, machinery and equipment, to finance inventory,refinance debt, or other working capital needs.

Program Highlights

Financing is available for up to $5,000,000

Longer maturities than conventional loans, with no balloon payments

Competitive pricing

Limited or no prepayment penalties

Low down payment requirements

SBA (7a) LOANSSBA (7a) LOANS

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The SBA 504 Program has been used by borrowers to acquire or re-finance Commercial owner occupied Real Estate with long term fixed rate financing.

Program Highlights

Bank loan- up to 50% of project: Conventional first mortgage (no SBA Guarantee). Fixed rate programs available for 5 and 10 year increments. (currently 7.9% fixed for 10 years).

SBA Loan-up to 40% of project: Second mortgage on CRE. Low fixed rate financing for entire 20 year term (currently 6.1%) Rate on refinancing is 1.043 higher.

Bank loan limited to 50% LTV.

SBA 504 LOANSSBA 504 LOANS

We Do It Better.

Few other firms provide end-to-end financing solutions

Business Service Specialists will guide advisors and clients through the process

Proprietary software, Newtracker™, allows for efficient handling, monitoring and reporting of referrals

Ease of use, submit a referral in less than 60 seconds

Through expanded offerings, improve client retention

Creates additional revenue streams (referral fee income)

VALUE DELIVERED BY NEWTEKVALUE DELIVERED BY NEWTEK

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TARGET MARKET A/R FINANCINGTARGET MARKET A/R FINANCING

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Business-to-Consumer

FloristsHardware StoresDry CleanersHeating Oil DistributorsLumber YardsPharmaciesLawn & Garden Centers

Business-to-Business

Limousine CompaniesPrinting CompaniesTemporary Staffing AgenciesSecurity Guard CompaniesJanitorial CompaniesManufacturersWholesalers/Distributors

Transaction Characteristics

Transaction size ranging from $50,000 to $1,500,000; higher with participation

Businesses with annual revenue of $300,000 to $10,000,000+

Advances are made against A/R only; no advances on inventory or other assets

Businesses with ongoing working capital needs

1. Prospect submits a complete application package

2. Proposal issued within 2 business days of receipt of application package

3. Underwriting begins upon receipt of executed proposal and due diligence deposit

4. Underwriting is completed and submitted to credit committee within 5 business days

5. Credit committee renders vote and contracts are delivered to prospect within 5 business days

6. Verification process begins upon receipt of executed contracts

7. Funds are released following verification process

The pre-funding process can typically be completed within two weeks; however, theprospect’s timeliness in rendering necessary information can impact this timeline.

A/R PRE-FUNDING PROCESSA/R PRE-FUNDING PROCESS

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1. Clients submit copies of their invoices as they are generated, along with purchase orders and/or bills of lading (where applicable)

2. Receivables data is loaded into our proprietary software

3. Receivables are evaluated for eligibility

4. Funding occurs weekly via ACH or wire transfer

5. Payments are received on an ongoing basis through our lockbox

6. Payments are processed and applied daily to the applicable invoices

7. Statements are sent to customers at month-end reflecting open balances

8. Reporting of all activity to clients occurs weekly

A/R POST-FUNDING PROCESSA/R POST-FUNDING PROCESS

We Do It Better.

A/R ExamplesA/R Examples

A wholesaler of products to large retail chains needs A/R financing to fund working capital needs associated with the collection of receivables. Newtek provided this firm a credit line of $1 million dollars to facilitate their continued growth.

Newtek has provided a line of credit to a franchised home health care provider to fund the collection of receivables associated with the services provided. The line of credit has helped them to not only meet their weekly payroll needs but also market their firm to facilitate continued growth.

TARGET MARKET SBA FINANCINGTARGET MARKET SBA FINANCING

We Do It Better.

Industry Types

FranchisesDoctors, Dentists, Chiropractors and VeterinariansAccountants, Lawyers and Service ProfessionalsManufacturing, Industrial & WholesaleAdult, Child and Special Needs Day Care CentersRetail Trade

Transaction Characteristics

Transaction size ranging from $50,000 to $10,000,000

Established businesses with track record

Loans may be used to acquire or expand an existing business, purchase/refinance real estate, purchase machinery and equipment, purchase inventory, refinance other existing debt, and/or other working capital needs

SBA Lending ProcessSBA Lending Process

1. Prospect completes loan application with direct assistance from Business Service Specialist (BSS).

2. Proposal issued within 24 hours.3. Upon acceptance, BSS works with the borrower

and the credit underwriter (credit department) to complete the loan analysis for submission to the credit committee. Normal time frame is 5 business days.

4. Upon loan approval, BSS works with the closing coordinator and the borrower to obtain the closing documents needed to fund the loan. Normal time frame ranges from 30-45 days.

SBA Lending ExamplesSBA Lending Examples Refinance: A borrower (freight handler) with a 10 + year track record

needed to refinance their existing line of credit. In this current lending environment many traditional banks are not renewing these types of credit facilities. Newtek provided this firm with a ten year term loan to refinance their line of credit.

Business Expansion: A borrower (consulting services) with a 5 year track record nationwide has developed proprietary software to be sold in addition to their services. Newtek provided this firm with a ten year term loan to fund this expansion.

Commercial Real Estate: A dentist with a successful practice was located in a leased property that was sold to a developer. Newtek provided him with a commercial mortgage for 25 years to both acquire a new office and make the necessary improvements to the building. The building is larger and will allow him to continue to grow his practice.

Business Acquisitions: A borrower of an existing audio/video installation firm wished to acquire a similar firm . The acquisition would increase his overall footprint and revenue potential. Newtek provided this firm with a term loan of $500,00 to acquire the business, intangible assets, and working capital. In this way, Newtek assisted the firm to expand their services to a larger geographic area.

SUBMIT A REFERRALwww.newtekreferrals.com

We Do It Better.