NEWS RELEASE
Nov. 19, 2008
ABA Media Contact: John Hall
(202) 663-5473
E-mail: jhall@aba.com

Promontory, Phil Battey

(703) 292-3357

pbattey@promnetwork.com

ABA ENDORSES A NEW INNOVATIVE TOOL FOR SMALL BUSINESS LENDING:  THE PROCEED BUSINESS LOAN

WASHINGTON – The American Bankers Association has endorsed the Proceed Business Loan, which is offered to banks exclusively through an affiliate of Promontory Interfinancial Network, LLC.  The loans are underwritten by On Deck Capital Inc.

Proceed is a timely service that enables banks to provide small business loans to customers that do not qualify for their traditional loans with risk-adjusted, fixed-rate, fixed-term loans of up to $100,000.  Banks offering Proceed do not incur any lending risk or underwriting costs, making it an ideal solution for those that want to meet heightened loan demand without adding to their balance sheets.

The Proceed Business Loan can help banks retain existing relationships that they might otherwise lose to alternative funding providers, such as merchant cash advance companies.  Additionally, it can help banks attract new small business customers and the checking accounts that come with these relationships.

This is the third service associated with Promontory to win the ABA's endorsement.   

"Along with Promontory's Certificate of Deposit Account Registry Service and Insured Network Deposits, the Proceed Business Loan addresses a compelling financial need," said Edward L. Yingling, ABA president and CEO.  "Now, when a small business applicant who does not meet traditional bank underwriting criteria applies for financing, a bank can still say, 'yes.'  Never has this been more important than today."

"The Proceed Business Loan provides the perfect opportunity for banks to strengthen their relationships with small businesses and to provide them with needed funding in this challenging environment," said Yingling.

The Proceed Business Loan is a turnkey loan product that bridges the gap between traditional bank loans and other loan alternatives.  It is ideal for small healthy businesses with a solid customer base that seek to grow by opening new locations, remodeling, and/or purchasing new equipment; to expand inventory; or to address unexpected business opportunities.  Lending decisions are based on proprietary scoring models that focus on business performance such as cash flow and other factors, rather than just the personal credit history of the business owner.  To be eligible for a Proceed Business Loan, a small business has to have been operating for at least one year.  All loans have a term of 12 months.

Promontory provides extensive support to help banks launch and sell the service.  This includes up front education and on-boarding assistance and customizable promotional materials.  Banks only need to pre-qualify and refer customers to the Proceed product.  They earn a referral fee for every loan that closes and maintain full ownership of the customer relationship.  The loans are underwritten, funded and serviced through On Deck Capital.

Prior to providing an endorsement, the ABA and its affiliate, the Corporation for American Banking, conducted a thorough product review and analysis of the Proceed Business Loan, evaluating a wide range of factors including product functionality, regulatory compliance, management strength, financial soundness and customer service.

About American Bankers Association 
The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America's economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry's $13.3 trillion in assets and employ over 2 million men and women.

About Promontory
Promontory Interfinancial Network, a financial services company headquartered in Arlington, VA, is led by former Comptroller of the Currency Eugene A. Ludwig, former Vice Chairman of the Federal Reserve Board Alan S. Blinder, and former chief of staff of the FDIC, Mark P. Jacobsen.

About On Deck Capital
On Deck Capital offers fair and fast financing to small businesses that do not meet traditional bank lending criteria.  On Deck Capital is financed by some of the nation's leading venture capital firms, including Contour Venture Partners, First Round Capital, Khosla Ventures, RRE Ventures and Village Ventures.

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