Newtek Business Services Inc. reported that the debt of two of its certified capital companies, located in Louisiana and Wisconsin, has been repaid. The debt of these certified capital companies (Capcos), both funded in 1999, have matured and the original insurance company investors have received full repayment as and when expected of the amounts advanced to the Capcos. As originally contracted, cash payments were made during October by American International Specialty Lines Insurance Company (AISLIC), which provided the credit enhancement to the Capco notes. With these, AISLIC has made their scheduled repayments in full of Newtek Capco debt of approximately $70.1 Million during 2009. The cash repayment obligations of all of Newtek's other Capcos have previously been satisfied in full by AISLIC.

Newtek Business Services Inc. reported that the Board of Directors has voted to authorize payment of a one time dividend of $0.02 per common share. The Company has 37,031,656 common shares outstanding. The one time dividend will be payable to shareholders of record on November 25, 2009 and paid on or about December 8, 2009.

Newtek Business Services Inc. entered into contracts to provide loan servicing and consulting services to the Federal Deposit Insurance Corporation for US Small Business Administration loans acquired from failed banks. Newtek will be a prime contractor assisting the FDIC in the orderly take over, management, servicing and liquidation of SBA loans acquired by it as receiver or conservator for failed financial institutions. The level of activity under the contract is currently unknown as it is dependent on assignments for particular transactions and portfolios.