PRESENTATION TO MORGAN STANLEY

1. PRESENTATION TO MORGAN STANLEY We Provide You With the Tools to Manage and Grow Your Business

2. ABOUT US Newtek Business Services, Inc. is a distributor of business and financial services 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.

3. Through its Business Lending and Business Credit divisions, Newtek provides 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 ABOUT US We Do It Better.

4. 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 SERVICES We Do It Better.

5. ACCOUNTS RECEIVABLE FINANCING Accounts Receivable Financing is a means for clients to accelerate cash flow by financing their open invoices. Clients receive cash in advance of payments 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 We Do It Better.

6. 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 future credit card sales deducted from their daily deposits, until the agreed upon purchase amount 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 ADVANCE We Do It Better.

7. Our Accounts Receivable Management Services provide businesses with professional 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 SERVICES We Do It Better.

8. 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 SERVICES We Do It Better.

9. SBA (7a) LOANS SBA loans are term loans that may be used for a variety of business purposes, 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 We Do It Better.

10. SBA 504 LOANS 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. We Do It Better.

11. 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 NEWTEK We Do It Better.

12. TARGET MARKET A/R FINANCING Business-to-Consumer • Florists • Hardware Stores • Dry Cleaners • Heating Oil Distributors • Lumber Yards • Pharmacies • Lawn & Garden Centers • Business-to-Business • Limousine Companies • Printing Companies • Temporary Staffing Agencies • Security Guard Companies • Janitorial Companies • Manufacturers • Wholesalers/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 We Do It Better.

13. A/R PRE-FUNDING PROCESS Prospect submits a complete application package Proposal issued within 2 business days of receipt of application package Underwriting begins upon receipt of executed proposal and due diligence deposit Underwriting is completed and submitted to credit committee within 5 business days Credit committee renders vote and contracts are delivered to prospect within 5 business days Verification process begins upon receipt of executed contracts Funds are released following verification process The pre-funding process can typically be completed within two weeks; however, the prospect’s timeliness in rendering necessary information can impact this timeline. We Do It Better.

14. A/R POST-FUNDING PROCESS Clients submit copies of their invoices as they are generated, along with purchase orders and/or bills of lading (where applicable) Receivables data is loaded into our proprietary software Receivables are evaluated for eligibility Funding occurs weekly via ACH or wire transfer Payments are received on an ongoing basis through our lockbox Payments are processed and applied daily to the applicable invoices Statements are sent to customers at month-end reflecting open balances Reporting of all activity to clients occurs weekly We Do It Better.

15. A/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.

16. TARGET MARKET SBA FINANCING Industry Types • Franchises • Doctors, Dentists, Chiropractors and Veterinarians • Accountants, Lawyers and Service Professionals • Manufacturing, Industrial & Wholesale • Adult, Child and Special Needs Day Care Centers • Retail 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 We Do It Better.

17. SBA Lending Process 1. Prospect completes loan application with direct assistance from Business Service Specialist (BSS). Proposal issued within 24 hours. 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. 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.

18. SBA 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.

19. SUBMIT A REFERRAL www.newtekreferrals.com We Do It Better.