Newtek Business Services Inc. - Recent Material Event

Item  1.01 Entry Into a Material Definitive Agreement.

On December 5, 2012, CDS Business Services, Inc. (“CDS”), a subsidiary of the Company, entered into Amendment No. 1 (the “Amendment”) to the Loan and Security Agreement, dated February 28, 2011 (as amended by the Amendment, the “Agreement”), by and between Sterling National Bank (“Sterling”) and CDS. The Amendment provides that upon the occurrence of certain events specified therein, the maximum amount of the warehouse line of credit provided by Sterling under the Agreement can be increased from $10,000,000 to $15,000,000 at a later date upon CDS’s request. The Amendment also extends the maturity date from February 28, 2014 to February 28, 2016, unless earlier terminated pursuant to the terms of the Agreement.

The above description is a summary and is qualified in its entirety by the terms of the Amendment, which is filed as Exhibit 10.9.3 to this Current Report on Form 8-K and is incorporated by reference herein.


Item 2.02 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein.


Item 5.04 Temporary Suspension of Trading Under Registrant’s Employer Benefit Plans

On December 7, 2012 the Company received notice from the Trustee and Administrator of its 401(k) retirement plan (the “Plan”), pursuant to section 101(i)(2)(E) of the Employment Retirement Income Security Act of 1974, as amended, that the Plan was scheduled to undergo a change in its third party administrator. As a result, all trading in the Company’s Common Shares, par value $0.02, will be suspended for Plan participants for such shares held in the Plan during the period beginning on or about January 7, 2013 and ending no later than February 21, 2013 (the “Blackout Period”). Notice of the Blackout Period for trading in Company Common Shares was provided to directors and executive officers on December 7, 2012, who will be prohibited from trading in any Common Shares of the Company during the Blackout Period, with the exception of such shares acquired prior to service with the Company as an executive officer of director.

Any inquiries regarding the foregoing may be directed to Matthew G. Ash, Chief Legal Officer and Secretary, Newtek Business Services, Inc., 212 West 35th Street, 2nd floor, New York, NY 10001, (212) 356-9542.


Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.





10.9.3    Amendment No. 1 to the Loan and Security Agreement.


In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date: December 11, 2012    

/s/ Barry Sloane

    Barry Sloane
    Chairman of the Board and Chief Executive Officer






10.9.3    Amendment No. 1 to the Loan and Security Agreement.