NEW YORK, Sept. 29, 2015 /PRNewswire/ -- OnDeck® (NYSE: 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."
For more information about the TILT Forward Initiative, visit www.tiltforward.com.
About OnDeck OnDeck, a leading platform for small business loans, is committed to increasing Main Street's access to capital. OnDeck uses advanced lending technology and analytics to assess creditworthiness based on actual operating performance and not solely on personal credit. The OnDeck Score®, the company's proprietary small business credit scoring system, evaluates thousands of data points to deliver a credit decision rapidly and accurately. Small businesses can apply for a line of credit or term loan online in minutes, get a decision immediately and receive funds in as fast as the same day. OnDeck also partners with small business service providers, enabling them to connect their customers to OnDeck financing. OnDeck's diversified loan funding strategy enables the company to fund small business loans from various credit facilities, securitization and the OnDeck Marketplace®, a platform that enables institutional investors to purchase small business loans originated by OnDeck.
Since 2007, OnDeck has deployed more than $3 billion to more than 700 different industries in all 50 U.S. states, and also makes small business loans in Canada. The company has an A+ rating with the Better Business Bureau and operates the website BusinessLoans.com which provides credit education and information about small business financing. On December 17, 2014, OnDeck started trading on the New York Stock Exchange.
For more information, please visit www.ondeck.com and follow OnDeck on Twitter @OnDeckCapital.
About Association for Enterprise Opportunity (AEO) The Association for Enterprise Opportunity (AEO) is the voice of microbusiness in the United States. For nearly 25 years, AEO and its more than 400 member organizations have helped millions of entrepreneurs contribute to economic growth while supporting themselves, their families and their communities. AEO members and partners include a broad range of organizations that provide capital and services to assist underserved entrepreneurs in starting, stabilizing and expanding their businesses. Together, we are working to change the way that capital and services flow to underserved entrepreneurs so that they can create jobs and opportunities for all. Learn more about The Association for Enterprise Opportunity at http://www.aeoworks.org/.
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