Pursuant to the terms of the PPP Participation Agreements, NSBF originates PPP loans and sells to each of the Participants ninety percent (90%) participation interests in certain of the PPP loans originated by NSBF. UBS Bank USA, Stifel Bank, Morgan Stanley Bank, N.A., and Amalgamated Bank (the вЂњParticipantsвЂќ and the вЂњPPP Participation AgreementsвЂќ). The amount of loan forgiveness will be reduced if the borrower reduces salaries or terminates employees during the eight-week period. The interest rate on PPP loans is capped at 1.0%, and the loans are forgivable after eight weeks, provided that the borrower uses the loans for eligible purposes (e.g., payroll/benefits (excluding employee compensation above $100,000), mortgage interest, rent and utilities) and maintains its payroll levels. Under the PPP, current SBA 7(a) lenders are automatically approved to extend 100% federally guaranteed PPP loans to certain small businesses for amounts up to 2.5 times of those businessesвЂ™ average monthly payroll expenses (capped at $10 million). Among other things, the CARES Act allows NSBF, as an SBA 7(a) lender, to issue loans under the newly-established Paycheck Protection Program (вЂњPPPвЂќ). On March 27, 2020, Congress passed, and the President of the United States signed into law, the Coronavirus Aid, Relief and Economic Security Act (вЂњCARES ActвЂќ), which provides an over $2.0 trillion stimulus package to certain businesses and individuals affected by the novel COVID-19 emergency. Due to the adoption of ASC 842, the Company recognized operating lease right-of-use assets and lease liabilities for its operating leases with lease terms greater than one year. The comparative information has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for those periods.The adoption of ASC 842 did not have a material impact on the CompanyвЂ™s accompanying consolidated statements of assets and liabilities, statements of operations or statements of cash flows. The Company recognized the cumulative effect of applying ASC 842 as an opening balance sheet adjustment at January 1, 2019. As part of the transition to ASC 842, the Company elected the package of practical expedients that allowed it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company adopted ASC 842 on Januusing the modified transition method. All intercompany balances and transactions have been eliminated in consolidation. The DecemberВ 31, 2019 consolidated statement of assets and liabilities has been derived from the audited financial statements as of that date.

The results of operations for an interim period may not give a true indication of the results for the entire year. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S.В GAAP and pursuant to the requirements for reporting on FormВ 10-Q and Article 10 of RegulationВ S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with U.S. The accompanying notes to the unaudited condensed consolidated financial statements should be read in conjunction with NewtekвЂ™s Annual Report for the year ended DecemberВ 31, 2019 on Form 10-K.

Bella note studio sandpoint idaho