By Flash Steinbeiser – September 13, 2012
A big new bet on small business lending could make things a bit easier for some entrepreneurs looking for cash.
Small business lender (and new Inc. 500 honoree) On Deck announced recently that it had landed nearly $100 million in credit facility commitments, mainly from Goldman Sachs. That new funding will let the lender offer larger loans and more flexible terms, said Noah Breslow, On Deck’s chief executive officer.
On Deck has received smaller commitments from Goldman in the past, Breslow said, but the investment banking giant upped its funding after seeing On Deck reach $300 million in loans.
“Small businesses can take comfort in that,” Breslow said. “They should feel good about working with On Deck because we have these institutions backing us up.”
And while the Goldman bet is a vote of confidence in On Deck, Breslow suggested that he is seeing a boost in broader small business confidence as well. Loan applicants are seeking funding for new equipment and new hires, he pointed out–things associated with expansion–rather than “defensive,” stay-afloat funding.
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