Company: NEWTP
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001587987-25-000050
Chunk: 128

Company: NewtekOne, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1A
Chunk 128
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 to increasingly complex governance, public disclosure and accounting requirements that are costly and could adversely affect our business and financial results. 

•Our clients may be concentrated in a limited number of industries, which may subject us to a risk of significant loss if there is a downturn in a particular industry in which a number of our loans are concentrated. 

•If we and our subsidiaries are unable to protect our intellectual property rights, our business and prospects could be harmed.

•The development and use of Artificial Intelligence (“AI”) present risks and challenges that may adversely impact our business.

Risks Related to SBA Lending

•Changes to the SBA 7(a) Program can negatively impact our SBA 7(a) loan origination volume.

•There can be no guarantee that Newtek Bank will be able to maintain its SBA 7(a) lending license and PLP status.

•NSBF will remain subject to SBA regulation as it winds down its operations.

•We have specific risks associated with our secondary market sales of the guaranteed portions of SBA loans.

•If NSBF or Newtek Bank fail to comply with SBA regulations in connection with the origination, servicing, or liquidation of an SBA 7(a) loan, liability on the SBA guaranty, in whole or in part, could be transferred to NSBF or Newtek Bank.

•Curtailment of the government-guaranteed loan programs could adversely affect our results of operations.

•Our loans under the SBA 7(a) Program involve a high risk of default and such default could adversely impact our results of operations.

•The loans we make under the SBA 7(a) Program face competition.

•A governmental failure to fund the SBA could adversely affect Newtek Bank’s SBA 7(a) loan originations and our results of operations.

•We could be adversely affected by weakness in the residential housing and CRE markets.

Risks Related to Payment Processing

•We could be adversely affected if any bank sponsorship is terminated.

•If NMS or its processors or bank sponsors fail to adhere to the standards of the Visa® and Mastercard® bankcard associations, its registrations with these associations could be terminated and it could be required to stop providing payment processing services for Visa® and Mastercard®.

•On occasion, NMS experiences increases in interchange and sponsorship fees. If it cannot pass along these increases to its merchants, its profit margins will be reduced.

•NMS is liable if its processing merchants refuse or cannot