I was checking their website for sec filings and found this:

On October 20, 2009 Newtek Business Services, Inc. entered into contracts to provide loan servicing and consulting services to the Federal Deposit Insurance Corporation (“FDIC”) for US Small Business Administration (“SBA”) 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. This is the first such FDIC contract Newtek has entered into.

Barry Sloane, Chairman and Chief Executive Officer of Newtek Business Services, Inc. said, “We are happy that the FDIC has recognized our expertise and competency in managing and servicing SBA assets by awarding us these nationwide servicing and consulting contracts. We believe that we will be able to help improve the performance and returns of these types of assets for the ultimate benefit of the FDIC and the US taxpayers.

“In addition, Newtek has placed significant emphasis on growing fee based income and related revenue streams that result from servicing SBA loans. We believe that the work we do for the FDIC will further strengthen our small business lender’s operations and Newtek’s overall business model, all of which over time will result in significant benefit to our shareholders.”


I think its a good sign that the FDIC wants to do business with them. Any idea of how significant the income from this may be?