Review Got Its OSCA Facts Wrong

To the Editor:

I want to express my disappointment with last week’s article, “OSCA to Loan $166,000.” The article presented several facts in an unclear or incorrect manner and I hope to straighten them up.
First off, OSCA is not loaning anybody $166,000 and there are no plans in the works to increase our notes receivable to that amount. The restructuring of OSCA’s recently revised bylaws allows for no more than 40 percent of OSCA’s unallocated general operating fund cash to be out in loans. This is inconsistent with the figure given in the article. As the amount of cash in the general operating fund fluctuates, so does the amount we can give in loans.
Another figure in need of correction: we do not have $64,000 out in loans. As of right now, about $35,000 of OSCA’s money is out in loans.
I take issue with the implication that we are looking to expand the loans we give out to “local progressive organizations.” First off, we do not actively solicit loan applications. If an organization is in need of a loan, we generally wait for them to approach us. Also, there is no progressive political agenda that accompanies our loan policies.
OSCA does not use its loans as a moneymaking alternative to investments. Rather, we see our loans as an opportunity to use our financial resources to benefit those who need the assistance. The interest charged is generally intended as a means to cover inflation and any risk associated with the loan, not as an opportunity to generate revenue.
The article seems to jump back and forth about where our money goes. At times, it mentions that we loan funds outside the Oberlin area. Other times, it talks about “building the surrounding community” and doing business with “people who have their roots and connections here [in Lorain County].” To clarify, the truth is that we do both. We do not give preference to groups within the local area and have a history of loans both within the Oberlin community, as well as far beyond the local area.
Finally, there is an element of risk associated with every loan that is made, be it by OSCA or a more traditional lending source. OSCA’s financial committee and board of directors always make sure that each prospective borrower is capable of paying off their loans. If an organization is financially unstable, I seriously doubt that they would receive a loan from us. Our history has shown that our borrowers have been very responsible, without any major problems as far back as we can remember.
In closing, I want to thank the Review for its interest in this topic, but also caution you that situations such as this lead me to doubt your credibility. In the future, if the Review (or anybody else, for that matter) has questions about OSCA’s finances, I ask that you consult more accurate sources (such as OSCA’s president or treasurer) for your information.

–Matt Morong
College senior
OSCA Treasurer