Newtek Small Business Finance Funds First Minority-Owned Auto Dealership Under the SBA's Emerging Market Automotive Program

NEW YORK, Oct. 2, 2003 -- Newtek Business Services, Inc. (AMEX:NKC) (www.newtekbusinessservices.com), a provider of business services and financial products to the small business market, announced today that its small business lender, Newtek Small Business Finance (www.newteksbfinance.com), has provided financing to the first minority-owned auto dealership in the U.S. in correlation with the SBA's Emerging Market Automotive Program. This program, which spawned a co-sponsorship agreement with the National Association of Minority Automobile Dealers (NAMAD) and Ford Motor Company, is designed to locate automobile dealership franchise opportunities for emerging market entrepreneurs and assist in the financing of these dealerships.

Newtek Small Business Finance provided a $600,000 loan to Monroe Bange of Verde Valley Ford Lincoln Mercury in Arizona who will use the money to purchase 100 percent of the equity from Ford Motor Company to become a fully-owned dealership and to secure additional working capital going forward.

Mr. Bange said, "The relationship among Ford, NAMAD and the SBA is a very positive initiative, but one that also requires the funding entities involved to understand the automotive business and the importance of investing in small businesses. Having completed the loan process, I am confident that Newtek Small Business Finance is the best source available for providing loans through the Emerging Market Automotive Program because of its principles' past SBA experience and their genuine dedication to small businesses. In addition, their ability to facilitate the loan process is more powerful than the local banks which may not have the specific understanding of the auto business."

Barry Sloane, Chairman and CEO of Newtek Business Services, Inc., stated, "Newtek excels in providing financial products and business services to underserved markets. Due to our national strategic alliances and our cost-effective distribution system into the small to medium-sized business market, we're able to find excellent opportunities where the conventional marketplace cannot. We are proud to be the first participant to provide financing for the Emerging Market Automotive Program which enables minorities to achieve 100 percent ownership of Ford dealerships across the country. We hope to continue to provide funding and business services to underserved communities and to help develop local markets and business opportunities."

"Verde Valley Ford is an excellent example of what can be accomplished when the private sector and the public sector work together in meeting the needs of small businesses," added John Cox, CEO of Newtek Small Business Finance. "Congratulations to Mr. Bange and his fine staff for making this business venture a true success. We look forward to meeting the needs of other minority-owned dealers throughout the nation."

Newtek Business Services, Inc. is a premier provider of business services and financial products to the small-business market. Newtek Business Services invests in and provides financial, management and technological services for small businesses throughout the country. Newtek brands include:

  * Newtek Small Business Finance: small business and U.S.
    government-guaranteed lending services;
  * Newtek Merchant Solutions: electronic merchant payment processing
    solutions;
  * Newtek Financial Information Systems: outsourced bookkeeping &
    controller services;
  * Newtek Tax Services: tax filing, preparation and advisory services;
  * Newtek Business Exchange: mergers, acquisitions and business brokerage
    services;
  * Newtek IT Services: complete information technology solutions;
  * Newtek Strategies: strategic business management and global marketing
    services; and
  * Newtek Client Services: marketing and customer relations services.