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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>UNITED
      STATES</u></strong></font></div>
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      AND EXCHANGE COMMISSION</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WASHINGTON,
      D.C. 20549</font></div>
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      8-K</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
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      of
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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      BUSINESS SERVICES, INC.</strong></font></div>
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      Name of Company as Specified in its Charter)</font></div>
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                or Other Jurisdiction of </font></div>
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                or Organization)</font></div>
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      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below): </font></div>
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</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
      </font></div>
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</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
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</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">240.14d-2(b))
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</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Forward-Looking
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
      in this Current Report on Form 8-K (including the exhibits), including
      statements regarding beliefs, expectations, intentions or strategies for the
      future, may be "forward-looking statements" under the Private Securities
      Litigation Reform Act of 1995. All forward-looking statements involve a number
      of risks and uncertainties that could cause actual results to differ materially
      from the plans, intentions and expectations reflected in or suggested by the
      forward-looking statements. Such risks and uncertainties include, among others,
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">intensified
      competition, operating problems and their impact on revenues and profit margins,
      anticipated future business strategies and financial performance, anticipated
      future number of customers, business prospects, legislative developments and
      similar matters</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Risk
      factors, cautionary statements and other conditions which could cause actual
      results to differ from management's current expectations are contained in
      filings by Newtek Business Services, Inc. with the Securities and Exchange
      Commission.&#160; Newtek undertakes no obligation to update any forward-looking
      statement to reflect events or circumstances that may arise after the date
      of
      this filing.</font></div>
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</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      June&#160;12, 2006, Robert Cichon entered into an employment agreement with the
      Company&#8217;s CrystalTech Web Hosting, Inc. subsidiary (&#8220;CrystalTech&#8221;) which
      provides for him to assume the office of President of CrystalTech on July 8,
      2006 upon the departure of Tim Uzzanti, President and Chief Executive Officer,
      and continue in his current role as Chief Operating Officer.&#160; Mr. Uzzanti&#8217;s
      employment agreement will lapse on such date based on the mutual consent of both parties, but he will
      remain bound by the non-compete provisions of his agreement with the company
      following his departure, which provides that he may not compete with CrystalTech
      for two years following the agreement and cannot solicit customers or employees
      of CrystalTech for five years following the agreement.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
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      accordance with the requirements of the Securities Exchange Act of 1934, the
      registrant has caused this report to be signed on its behalf by the undersigned,
      thereunto duly authorized.</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NEWTEK
                BUSINESS SERVICES, INC.</strong></font></div>
            </td>
          </tr>
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            <td align="left" valign="top" width="27%">&#160;</td>
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                June 12 , 2006</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;/s/
                Barry
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{"company-data": {"conformed-name": "NEWTEK BUSINESS SERVICES INC", "cik": "0001094019", "assigned-sic": "6199", "irs-number": "113504638", "state-of-incorporation": "NY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16123", "film-number": "06899651"}, "business-address": {"street1": "100 QUENTIN ROOSEVELT BLVD.", "city": "GARDEN CITY", "state": "NY", "zip": "11530", "phone": "5163902260"}, "mail-address": {"street1": "100 QUENTIN ROOSEVELT BLVD.", "city": "GARDEN CITY", "state": "NY", "zip": "11530"}, "former-company": [{"former-conformed-name": "NEWTEK CAPITAL INC", "date-changed": "20000229"}, {"former-conformed-name": "TWG INC", "date-changed": "19991213"}, {"former-conformed-name": "WHITESTONE HOLDINGS INC", "date-changed": "19990827"}]}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934
June
      12, 2006 (June 12, 2006)
Date
      of
      Report (date of Earliest Event Reported)
NEWTEK
      BUSINESS SERVICES, INC.
(Exact
      Name of Company as Specified in its Charter)
NEW
                YORK
001-16123
11-3504638
(State
                or Other Jurisdiction of
Incorporation
                or Organization)
(Commission
                File No.)
(I.R.S.
                Employer Identification No.)
462
      Seventh Avenue, 14
th
floor,
      New York, NY 10018
(Address
      of principal executive offices and zip code)
(212)
      356-9500
(Company's
      telephone number, including area code)
NEWTEK
      CAPITAL, INC.
(Former
      name or former address, if changed from last report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
¨
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Forward-Looking
      Statements
Statements
      in this Current Report on Form 8-K (including the exhibits), including
      statements regarding beliefs, expectations, intentions or strategies for the
      future, may be "forward-looking statements" under the Private Securities
      Litigation Reform Act of 1995. All forward-looking statements involve a number
      of risks and uncertainties that could cause actual results to differ materially
      from the plans, intentions and expectations reflected in or suggested by the
      forward-looking statements. Such risks and uncertainties include, among others,
intensified
      competition, operating problems and their impact on revenues and profit margins,
      anticipated future business strategies and financial performance, anticipated
      future number of customers, business prospects, legislative developments and
      similar matters
.
      Risk
      factors, cautionary statements and other conditions which could cause actual
      results to differ from management's current expectations are contained in
      filings by Newtek Business Services, Inc. with the Securities and Exchange
      Commission.  Newtek undertakes no obligation to update any forward-looking
      statement to reflect events or circumstances that may arise after the date
      of
      this filing.
ITEM
      8.01
Other
      Events.
On
      June 12, 2006, Robert Cichon entered into an employment agreement with the
      Company's CrystalTech Web Hosting, Inc. subsidiary ("CrystalTech") which
      provides for him to assume the office of President of CrystalTech on July 8,
      2006 upon the departure of Tim Uzzanti, President and Chief Executive Officer,
      and continue in his current role as Chief Operating Officer.  Mr. Uzzanti's
      employment agreement will lapse on such date based on the mutual consent of both parties, but he will
      remain bound by the non-compete provisions of his agreement with the company
      following his departure, which provides that he may not compete with CrystalTech
      for two years following the agreement and cannot solicit customers or employees
      of CrystalTech for five years following the agreement.
SIGNATURES
In
      accordance with the requirements of the Securities Exchange Act of 1934, the
      registrant has caused this report to be signed on its behalf by the undersigned,
      thereunto duly authorized.
NEWTEK
                BUSINESS SERVICES, INC.
Date:
                June 12 , 2006
/s/
                Barry
                Sloane
Barry
                Sloane
Chairman
                of the Board, Chief Executive Officer,
                Secretary
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