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Corporate Loan Strategy

Ameritrans Corporate Loan Strategy focuses on building a diverse portfolio of corporate loans to middle market companies. Given the size of the corporate loan market, Ameritrans believes that the Corporate Loan Strategy will allow the Company to increase its asset base.

The Company defines the middle market as companies comprising of earnings before interest and taxes ("EBITDA") of between $10 and $100 million. Ameritrans' middle market business targets companies with solid historical cash flows, strong collateral coverage, equity sponsorship, experienced management teams, and identifiable and defendable market positions.

Ameritrans invests in first lien term loans of middle market companies which, due to the priority in a company's capital structure, will have lower default rates and higher rates of recovery of the principal if there is a default.

The Company expects the investments made as part of the Corporate Loan Strategy will generate current income, capital appreciation and fee income related to the origination and investment management of such investments.