Newtek Capital, Inc. has been providing small businesses with financial and business services. The institution announced that it had the intention of taking part in the Certified Capital Company Program (CAPCO Program); a Louisiana-based program that had been expanded. The then Louisiana Governor Murphy James ‘Mike’ Foster, Jr on June 14th of 2002 signed legislation that created the CAPCO tax credit program worth a hundred million dollars. This program aimed at providing the small Louisiana businesses the much-needed capital they lacked. The program was to take part in two phases; the first phase would have the program funded halfway in 2002, and the other half in the year 2003. The $50 million allocated for the respective years were to be availed in premium tax credits form to insurance companies.
Newtek’s CEO and Chairman revealed that through their participation in the CAPCO program, they had raised a significant amount of non-dilutive capital. The funds raised in the program were to be used for investing in the local businesses that existed in the Louisiana area. Similar CAPCO program branches like those in Florida, New York, Wisconsin, and Colorado managed to raise around $165 million.
Newtek intended to participate in the re-launched program, through the program based in Louisiana and the regional business development center. The regional business development center had raised certified capital of up to $20 million.
About Newtek Capital Inc.
Newtek Capital Inc. offers small businesses financial and business services. It invests and provides management, technological and financial services to these businesses. The company’s brand is inclusive of:
- Merchant Solutions – offers solutions to merchant card processing.
- Newtek IT services – provides countrywide IT solutions.
- Newtek Financial Information Systems – offers back office controller and support services.
- Newtek Strategies – offers services of strategic business management.
Forward-looking statement relating to matters such as business prospects, future financial performance, legislative developments are also expressed. The 1995 Litigation Reform Act gives a harbor for forward-looking. In compliance with the act, the Newtek stated some factors that would result in a deviation from the anticipated results materially. They stated factors such as intensive competition and other operational problems in their business, and other additional unforeseen factors would cause some deviations. The impact of the problems that were anticipated in the business operation were expected to have a direct impact on the company’s revenues and profit margins most definitely. All these prospects were clearly described in the company’s registration statement they had filed previously.
