The goal of the study, which was conducted by top economic consulting firm Analysis Group, was to measure the incremental impact of business activity funded by OnDeck loans on U.S. output and employment. The findings indicate that as traditional lenders continue to move away from small business lending, direct lending will play an increasingly important role in supporting the economic contributions of small businesses.

Combining OnDeck customer survey results with an established input-output model measuring the direct, indirect and induced economic effects of OnDeck's lending, the study revealed the following major findings:

OnDeck's $1 billion deployed to Main Street has generated $3.4 billion in U.S. economic impact.
For every $1.00 that OnDeck loans to small businesses, $3.42 are generated through industry, supply chain and job creation gains. These gains stem from the fact that OnDeck's loans are most commonly used for buying inventory, purchasing equipment, hiring and cash flow management.
22,000 jobs were added to the U.S. as a result of business owners having vital capital to grow their businesses.
While 60% of OnDeck's customers considered borrowing from traditional sources, the #1 reason the majority did not apply was because they thought the process would take too long. Their experience can be seen as a response to the high search costs outlined in the New York Federal Reserve's Fall 2013 Small Business Credit Survey study indicating that small businesses spend 26 hours when searching and applying for credit.

"We have always known that when capital flows to Main Street, small businesses thrive. OnDeck has created a lending option that dramatically reduces small business search costs and therefore enables more businesses to efficiently seek financing. This has resulted in incremental applications and borrowing as well as a multiplier effect on U.S. economic activity," said Andrea Gellert, senior vice president of marketing, OnDeck. "Our k. "Our vision of delivering capital to small businesses is important because traditional lenders are unable to meet this need. We are solving that problem with our OnDeck Score™ and advanced technology that makes access to capital quick and convenient for business owners."

OnDeck's use of disruptive technology has fundamentally transformed how growth capital flows to Main Street. The company's platform and proprietary business score, the OnDeck Score, enables fast application, approval and funding processes that have helped trigger strong momentum across Main Street. To date, OnDeck has financed over $1 billion in small business loans in all 50 states across approximately 700 industries.