NewtekOne reported a significant increase in business lending activity for the second quarter of 2024. SBA 7(a) loan closings, a popular loan product for small businesses, jumped 18% year-over-year to $229.8 million. The company also forecasts total SBA 7(a) loan fundings for 2024 to reach $935 million, reflecting a 14.7% increase from 2023.
Newtek Bank also saw a modest increase in SBA 504 loan closings, up 3.94% to $16.4 million for the quarter. Overall, Newtek and its subsidiaries closed $316.5 million in loans across all loan products, a 26.3% increase compared to the same period in 2023.
Analysis
Newtek's business lending performance is positive. The strong growth in SBA 7(a) loans suggests a healthy demand for financing among small businesses. The company's forecast for full-year SBA 7(a) loan funding further strengthens this positive outlook. While the growth in SBA 504 loans is modest, the overall loan volume increase across all loan products indicates that Newtek is effectively catering to the borrowing needs of various businesses.
It's important to note that this press release only provides a snapshot of Newtek's lending activity. A more comprehensive analysis would involve looking at factors such as loan delinquency rates, approval rates, and the average loan size.
Overall, Newtek's business lending results are a positive sign for the company's growth prospects. The continued rise in loan volumes suggests that Newtek is well-positioned to capitalize on the increasing demand for small business financing.
NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with Newtek Bank and NewtekOne's non-bank consolidated subsidiaries, provides a wide range of business and financial solutions under the Newtek® brand to independent business owners. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to our independent business owner relationships across all 50 states to help them grow their sales, control their expenses and reduce their risk.
NewtekOne’s and its subsidiaries’ business and financial solutions include: banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
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