AMERITRANS CAPITAL CORP

AMERITRANS CAPITAL CORP

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Company Overview
Ameritrans Capital Corporation is a specialty finance company primarily engaged in making loans and investments to small businesses and making loans to consumers and for investment use. The company was formed in 1998 to engage in lending and investment activities, primarily with small and medium-sized businesses, directly and through subsidiaries. The US-based company has a registered office located in New York.
Ameritrans Capital Corporation and its subsidiaries will continue to develop loan programs and specialized investments to meet the needs of current and new commercial customers. The company expanded its diversified investment/lending business outside the New York metropolitan area into new industries as well as into new geographical markets. Its successful expansion of its medallion business into Chicago, Boston and Miami as well as its equity investments in Texas and Virginia demonstrate management’s skills lending into distant geographies. Ameritrans aggressively seeks new opportunities for loans and investments throughout the United States.
One of the company’s wholly owned subsidiaries is Elk Associates Funding Corporation, a small business investment company licensed by the US Small Business Administration since 1980 specializing in Taxi finance and commercial loans.
Ameritrans Capital Corporation established a relationship with CBA Commercial LLC (CBAC), a specialized mortgage investment firm, and launched a Small Balance Commercial Mortgage Loan Program.
Business Summary
Ameritrans Capital Corporation (Ameritrans) is a closed-end investment company, which makes loans and investments. Through its wholly owned subsidiary, Elk Associates Funding Corporation (Elk), the Company makes loans to finance the acquisition and operation of small businesses as permitted by the United States Small Business Administration (the SBA) regulations. Elk Capital Corporation (Elk Capital) is a wholly owned subsidiary of Ameritrans. As of June 30, 2010, Elk Capital had no operations. Ameritrans makes loans, which have been secured by real estate mortgages, senior corporate loans, life insurance settlements and equity investments. During the fiscal year ended June 30, 2010 (fiscal 2010), Elk had one wholly owned subsidiary: EAF Holding Corporation. The Company aggregate its business into five categories: Corporate Loans, Commercial Loans, Life Insurance Settlements, Equity Investments and Taxicab Medallion Finance.
Description and history
Ameritrans Capital Corporation (Ameritrans) is a closed-end investment company, which makes loans and investments. Through its wholly owned subsidiary, Elk Associates Funding Corporation (Elk), the Company makes loans to finance the acquisition and operation of small businesses as permitted by the United States Small Business Administration (the SBA) regulations. Elk Capital Corporation (Elk Capital) is a wholly owned subsidiary of Ameritrans. As of June 30, 2010, Elk Capital had no operations. Ameritrans makes loans, which have been secured by real estate mortgages, senior corporate loans, life insurance settlements and equity investments. During the fiscal year ended June 30, 2010 (fiscal 2010), Elk had one wholly owned subsidiary: EAF Holding Corporation. The Company aggregate its business into five categories: Corporate Loans, Commercial Loans, Life Insurance Settlements, Equity Investments and Taxicab Medallion Finance.

Corporate Loans

Ameritrans invests in senior loans of middle market companies. Corporate Loan targets companies that have strong historical cash flows, collateral coverage, equity sponsorship, experienced management teams and identifiable and defendable market positions.

Commercial Loans

The Company’s Commercial Loans finance either the purchase of the equipment and related assets necessary to open a new business or the purchase or improvement of an existing business. It holds these loans to maturity, although from time to time it sells participation interests in its loans to share risk, or purchases participation interests in loans originated by other finance companies. Interest rates on outstanding Commercial Loans range from 5% to 14.5%, with a weighted average of 13.55%.

Life Settlement Contracts

As of January 8, 2010, the Company purchased the life insurance policies pursuant to a purchase agreement. It acquired all of the rights to and title and interest in, 10 life insurance policies. As of June 30, 2010, it owned a total of five policies. It decided to exit this line of business and plan to make no new investments in life insurance settlement policies other than the continued payment of premiums on existing investments.

Equity Investments

Ameritrans makes equity investments. These investments may be independent or incidental to its other lines of business.

Sources Of Funds

The Company funds its operations from a range of sources. Elk is authorized to borrow money and issue debentures, promissory notes and other obligations, subject to the United States Small Business Administration (SBA) regulatory limitations. As of June 30, 2010, Elk had borrowed funds only from banks. As of June 30, 2010, Elk maintained two lines of credit. The credit lines have maturity dates of December 10, 2010 and July 6, 2011 and interest rates of 4.0% and 4.5%, respectively.

Formed to engage in lending and investment activities, primarily with small and medium-sized businesses, directly and through subsidiaries

Business Line
Specialty finance company primarily engaged in making loans and investments to small businesses and making loans to consumers and for investment use
Subsidiary
ELK ASSOCIATES FUNDING CORPORATION
Advisor
ROSEN, SEYMOUR, SHAPSS, MARTIN & CO., LLP
IPO date
6/23/1998
US SIC Code
6153
Company Address
4th Floor
747, Third Avenue
City province or state postal code
10017, NEW YORK, NY
Phone: +1 800 214 1047
Fax: +1 212 759 3338
Country address: UNITED STATES OF AMERICA
Website url: www.ameritranscapital.com