Online small business lender OnDeck recently completed a study to determine the economic impact of its first $3 billion in small business loans.
Those loans have produced an estimated $11 billion of business activity while creating 74,000 jobs, rates higher than the $3.4 billion and 22,000 jobs generated from the first $1 billion the company said in a release.
The three most popular uses of the funds were inventory, hiring and retention and equipment purchasing.
“These results talk about the tangible impact of these loans,” OnDeck Director of External Affairs and Associate General Counsel Daniel Gorfine said.
Even though America’s 28 million small businesses represent more than half U.S. sales (54 percent), jobs (55 percent) and new net jobs since 1970 (66 percent), they have not been adequately served by traditional financial institutions.
That has produced a gap OnDeck has obviously filled, Mr. Gorfine added.
“We are 100 percent focused on small business and addressing the credit gap through efficient capital access.”
But that does not mean OnDeck only benefits small business, Mr. Gorfine said.
“Larger businesses may be bankable but choose to come to OnDeck because of efficiency.”
Mr. Gorfine said recent product introductions, including lines of credit up to $100,000 and 36-month terms will enable OnDeck to help an incredible cross section of small businesses.
“We are a full service provider to small businesses throughout their life cycle.”
The study, conducted by economic consultancy Analysis Group, combined customer survey results with an established model which measures direct and indirect impact.