OnDeck and AEO to Facilitate Up To $10 Million In Loans To Small Businesses
29 September 2015 – OnDeck (ONDK), a leading platform for small business lending, today announced an expansion of its partnership with the Association for Enterprise Opportunity (AEO).
OnDeck is licensing its proprietary technology platform to AEO’s community lending partners who participate in the Association’s TILT Forward Initiative. The Initiative improves access to capital for small business owners and entrepreneurs in underserved communities. OnDeck expects this phase, which will increase the number of participating CDFIs, to facilitate up to $10 million in loans to small businesses across the country.
“OnDeck’s mission is to provide responsible credit solutions for the complete range of small business needs, and high impact private-nonprofit partnerships such as this are crucial to supporting a financial system that works for all Main Street businesses,” said James Hobson, chief operating officer, OnDeck. “When our community-oriented lenders and initiatives have seamless access to leading technology and fair and transparent credit products, that’s when positive change takes place.”
TILT Forward equips community development financial institutions (CDFIs) and community and nonprofit lenders with innovative loan products and technologies that serve critical small business needs. OnDeck’s platform helps these lenders efficiently identify small businesses that have been underserved by traditional sources but meet the requirements of CDFIs. In doing so, OnDeck is extending its leading data analytics and loan process automation to participating mission-focused lenders across the United States. Both OnDeck and AEO plan to have 10 CDFIs participating in the program by early 2016, with DreamFund, an AEO subsidiary, serving as an innovative capital provider that can help scale the Initiative and attract participation from banks, philanthropists and individuals committed to investment in underserved communities.
Tammy Halevy, senior vice president of new initiatives at AEO, said, “This partnership has been vital to small businesses underserved by banks and traditional lenders, as well as to the community impact of participating CDFIs. By expanding the availability of affordable and appropriately tailored financing for small businesses, the TILT Forward Initiative will accelerate small business growth in underserved communities fueling job creation, reducing unemployment, and stabilizing local communities. With OnDeck’s support, CDFIs are able to efficiently serve more small businesses in their communities and focus resources on providing critical technical assistance and guidance.”
The partnership between OnDeck and AEO has originated approximately $1.5 million in loans to date with participation from four CDFIs. OnDeck has waived its fees for AEO’s community lending partners to help build and scale the solution for the Association’s national member and partner network.
“The bank wasn’t comfortable loaning me money,” said Michael Temm, owner of Wedding Wonderland Cake Shop located outside of St. Louis, MO. “They wanted collateral, but I thought that my business sales would be enough. I don’t remember anything being hard about getting this TILT Forward loan. And then once I was approved, I had the money directly deposited in my account within I think two or three days. It was amazing.”
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