Ohio Business Lending Clearinghouse

written on October 18, 2010 by John Doucette

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Earlier this month the State of Ohio launched a new web site that allows businesses to enter an initial application for a loan on line.  The information is communicated to participating banks and any lenders interested in the business will contact the applicant within 48 hours.  The Ohio Business Lending Clearinghouse http://www.ohioblc.com is a partnership between the Ohio Department of Development, the Treasurer of State and a number of participating financial institutions.  OBLC does not make loans or guarantee that applicants will receive a loan.  Lenders perform a review of the applicant’s information to determine whether the applicant may qualify for a loan from them. If there is potential, interested lenders will contact the business directly to obtain an application.  This application will then be evaluated using the bank’s normal underwriting criteria.

This program is operated by the state and costs nothing to use.  The web site asks for some basic information about the business and its owner as well as the amount and purpose of the loan being requested.  Completing the web form should take just a few moments.  However, keep in mind that lenders who participate in this program still use their standard underwriting procedures so applicants will need to provide the full spectrum of financial information later if they are contacted by an interested bank.

No funds or loan guarantees are made available to lenders regarding loans made as a result of this program.  OBLC does not inject more capital into the system or make loans easier to qualify for.  The advantage of this program is that the details of a request are shared with a large number of participating lenders.  The business will only be contacted by lenders that have an interest in pursuing the deal.  While this is not a guarantee that the loan will be given, using the OBLC will eliminate the frustration and time wasted by applying to a lender that is not going to be interested and may bring applicants into contact with lenders they would not have contacted on their own. .

 

John Doucette
Liquid Capital of Northeast Ohio
(440) 734-3321
john@lcneo.com  
www.lcneo.com