10x Oversubscribed: NewtekOne's $295M Securitization Proves Wall St Demand

If you are wondering where the smart money is moving in 2026, look no further than the latest deal from NewtekOne.

The company just closed a $295 million securitization of its Alternative Loan Program (ALP) notes. But the headline isn't the size of the deal, it’s the demand.

According to the release, the offering was roughly 10 times oversubscribed, with 32 separate institutional investors fighting to get a piece of the paper.

What Happened?

• The Deal: Newtek sold $295 million in rated notes backed by a pool of $342 million in business loans.

• The Rating: The Class A notes received an "A (low)" rating from Morningstar DBRS.

• The Pricing: The weighted average yield was 6.08%.

• The Signal: When 32 institutions show up to bid on business loan paper, it means the capital markets are officially "risk-on" for the right kind of SMB asset.

What is the "ALP" Product?

The Alternative Loan Program (ALP) is Newtek's answer to the "grey zone" borrower, the business that is too big or too liquid for a standard SBA 7(a) loan, but perhaps needs more flexibility than a conservative local bank will offer.

• Loan Size: Average is ~$4 million (vs. $450k for SBA).

• Terms: 10–25 year amortization (no balloon payments), which kills the cash-flow pressure of shorter-term debt.

• The "Credit Elsewhere" Test: ALP loans are often for borrowers who could get credit elsewhere but prefer the speed or structure of Newtek, meaning they don't qualify for SBA.

The Takeaway

This securitization is a "reload" of Newtek's cannon. With $295 million in fresh liquidity and a 10x vote of confidence from Wall Street, expect Newtek to be aggressive in originating these larger ($2M - $15M) files in Q1 and Q2.