Lendistry Announces an Innovative Plan for Its New Markets Tax Credit Allocation of $35MM
The small business lender has developed a groundbreaking way to give its New Markets Tax Credit allocation a greater impact in the underserved small business community.
LOS ANGELES, September 29, 2021 (Newswire.com) - B.S.D. Capital, Inc. dba Lendistry ("Lendistry") announced today that it has been allocated $35MM in New Markets Tax Credits ("NMTC"). The U.S. Department of the Treasury's Community Development Financial Institutions Fund ("CDFI Fund") awards NMTCs to generate economic and community development in low-income urban and rural areas nationwide. As the only fintech CDFI and a bold, non-traditional financial institution, Lendistry has partnered with Monge Capital to deploy these funds to historically disadvantaged and underserved small businesses.
With this allocation, Lendistry joins a long tradition of community development. Over the past two decades, the New Markets Tax Credit has made it possible for the federal government to inject capital into low-income communities and businesses. Now more than ever, these businesses need access to fair, affordable financing to recover and grow.
Lendistry, in conjunction with Monge Capital, a New Jersey-based minority business entity (MBE) that provides capital solutions and advice to public and private entities to support investment in underserved and disadvantaged communities, has developed a plan to use the $35MM allocation to optimal effect. The plan is two-fold: provide financing to commercial real estate development projects in disadvantaged communities and set up an investment model that attracts traditional investors to the underserved and underbanked business community.
"We are proud to help advance the mission of the NMTC program by supporting the expansion of Lendistry's innovative capital solutions for underserved businesses," said Jeff Monge, Managing Partner of Monge Capital.
A large portion of the NMTC allocation will become a loan fund designated for Qualified Active Low-Income Community Businesses ("QALICBs"). Lendistry and Monge Capital will then call upon new and existing relationships with equity investors, who share the priority of supporting the QALICB community, to invest in the fund in exchange for tax credits. These equity contributions will be used to fund flexible and innovative small business loans and will be re-lent throughout the compliance period as loans are repaid to maximize community impact.
Lendistry CEO, Everett K. Sands, says, "Lendistry's mission is to provide small business owners who have been underbanked and underestimated in the financial sector with trailblazing, non-traditional solutions. The fact that the CDFI Fund has awarded us this allocation is a confirmation that we are on the right path. This recognition is motivation to keep innovating ahead of the small business community's needs."
Since its inception, NMTC Program awards have spurred $8 of private investment for every $1 allocated, and Lendistry has never met a statistic it couldn't surpass.
For inquiries about this program, please contact [email protected].
About Lendistry
B.S.D. Capital, Inc. dba Lendistry (lendistry.com) is a minority-led and technology-enabled small business and commercial real estate lender with Community Development Financial Institution (CDFI) and Community Development Entity (CDE) certification. Lendistry ranks second nationwide in SBA Community Advantage lending, providing responsible financing to small business owners and their underserved communities. Lendistry is a member of the Federal Home Loan Bank of San Francisco, and is headquartered in a Los Angeles Opportunity Zone. During the COVID-19 pandemic, Lendistry provided Paycheck Protection Program (PPP) loans to small businesses in all 50 states and was selected by California, Pennsylvania and New York to administer their small business relief programs, which distributed grants to businesses that lost significant revenue during the pandemic. Lendistry and its nonprofit partner organization, The Center by Lendistry, are dedicated to providing economic opportunities and progressive growth for underserved urban and rural small business borrowers and their communities.
Source: Lendistry
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