Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
PELOSE GEORGE D
   2. Issuer Name and Ticker or Trading Symbol
MARLIN BUSINESS SERVICES CORP [MRLN] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Executive Vice President
(Last)
(First)
(Middle)
C/O MARLIN BUSINESS SERVICES CORP., 300 FELLOWSHIP ROAD		 3. Date of Earliest Transaction (Month/Day/Year)
08/24/2006
(Street)

MOUNT LAUREL, NJ 08054		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 08/24/2006   M   1,250 A $ 5.01 73,909 (1) D  
Common Stock 08/24/2006   S(2)   1,250 D $ 20.89 (3) 72,659 (1) D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Option to Purchase Common Stock $ 5.01 08/24/2006   M     1,250 07/27/2004(4) 07/27/2010 Common Stock 21,000 (5) 18,800 D  
Option to Purchase Common Stock $ 3.39             08/22/2005(4) 08/22/2011 Common Stock 7,000   7,000 D  
Option to Purchase Common Stock $ 10.18             10/04/2005(4) 10/04/2011 Common Stock 42,700   42,700 D  
Option to Purchase Common Stock $ 3.39             01/17/2006(4) 01/17/2012 Common Stock 28,000   28,000 D  
Option to Purchase Common Stock $ 3.39             01/13/2007(4) 01/13/2013 Common Stock 7,000   7,000 D  
Option to Purchase Common Stock $ 10.18             01/13/2007(4) 01/13/2013 Common Stock 6,055   6,055 D  
Option to Purchase Common Stock $ 14             11/11/2007(4) 11/10/2013 Common Stock 10,000   10,000 D  
Option to Purchase Common Stock $ 18.8             01/29/2012(6) 01/28/2014 Common Stock 12,500   12,500 D  
Option to Purchase Common Stock $ 17.52             01/11/2009(4) 01/10/2012 Common Stock 9,246   9,246 D  
Option to Purchase Common Stock $ 21.6             03/28/2010(4) 03/28/2013 Common Stock 3,891   3,891 D  
Option to Purchase Common Stock $ 21.6             03/28/2010(7) 03/28/2013 Common Stock 5,838 (8)   5,838 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
PELOSE GEORGE D
C/O MARLIN BUSINESS SERVICES CORP.
300 FELLOWSHIP ROAD
MOUNT LAUREL, NJ 08054		       Executive Vice President  

Signatures

 /s/ George D. Pelose   08/25/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes a total of 68,957 shares of restricted stock where, as of the date of this filing, the restrictions have not yet lapsed.
(2) The sale of shares of Marlin Business Services Corp. on this Form 4 was executed pursuant to a written plan adopted by the reporting person on February 15, 2006, that is intended to comply with Rule 10b5-1(c) of the Securities and Exchange Act of 1934.
(3) Represents average net sales price per share.
(4) Date listed is the date of full vesting. Each grants vests 25% per year beginning on the first anniversary of the date of grant.
(5) N/A
(6) Date listed is date of scheduled full vesting. This grant vests over an eight year period at the following annual increments: 2.5% in first year; 5.0% in second year; 7.5% in third year; 10.0% in fourth year; 15.0% in fifth year; and 20.0% in each of the sixth, seventh and eighth years. Vesting can be accelerated upon the reporting person's achievement of certain performance goals set forth in the grant instrument.
(7) Represents the date the options will cliff vest if certain four year average EPS growth targets are achieved.
(8) Represents the maximum number of options that may vest under this performance option grant. Vesting will be determined by EPS growth rates averaged over a four year performance period. Depending on the average EPS growth rate achieved for the four year period, the number of shares that vest at the end of the four year period could be 0; 1,946; 3,892; or 5,838.

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