On January 6, 2021 Newtek Business Services Corp. (the “Company”) completed an exempt offering (the “Offering”) of $10 million aggregate principal amount of its 6.85% notes due 2025 (the “Notes”). The Offering was consummated pursuant to the terms of a purchase agreement (the “Purchase Agreement”) dated November 27, 2020 among the Company and an accredited investor (the “Purchaser”).

The initial exempt offering of $5 million aggregate principal amount of the Notes was completed on November 27, 2020 pursuant to the Purchase Agreement. On January 6, 2021, pursuant to the terms of the Purchase Agreement, the Company completed the Offering of $10 million aggregate principal amount of additional Notes by a placement notice delivered to the Purchaser prior to March 31, 2021. The Purchase Agreement provides for the Notes to be issued to the Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

The Company relied upon this exemption from registration based in part on representations made by the Purchaser. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the Notes were approximately $9.7 million, after deducting structuring fees and estimated offering expenses, each payable by the Company.

The Company intends to use the net proceeds from the sale of the Notes to fund investments in debt and equity in accordance with its investment objectives and strategies. Under the Purchase Agreement, the Company may, by mutual agreement of the parties, issue up to $15 million in aggregate principal amount of additional Notes by placement notice delivered to the Purchaser after March 31, 2021 and before November 30, 2022.