The United States Small Business Administration (SBA) is quite particular about which small businesses receive lending licenses. However, one Black-owned lending business has cracked the code. As one of the 14 licenses awarded, Lendistry — a CDFI and Fintech organization — has now become the only, Black-led group with a Small Business Lending Company license.
According to the company’s website:
Lendistry “combines the speed and convenience of technology, the knowledge and guidance of responsible lending, and the investment capital of social impactors and national banks.”
This SBA designation changes the game for the lending company, allowing them to significantly increase access to capital for the under-resourced borrowers it has always served. Increasing the amount of lending given to Black and Brown communities gives Lendistry the leverage to advance economic opportunities and progressive growth for their targeted demographic.
Partnership And Equitable Access
According to a press release, Lendistry has also collaborated with OneUnited Bank (the nation’s largest Black-owned bank) to provide small business loans to its Black customers.
“We began our relationship with Lendistry in 2020 with the Paycheck Protection Program (PPP) and continued in 2021 with our OneTransaction Program,” states Teri Williams, OneUnited Bank President. “We’re proud to expand our relationship in 2022 to offer small business loans to our customers nationwide.”
All of the progression comes as the United States is experiencing more businesses entering the economy than ever before, a phenomenon Lendistry CEO Everett K. Sands has coined as the “The Great New Business Formation.”
With the announcement of the SBA designation, Sands continues to advocate for ways to expand equitable access to capital to mitigate discriminatory practices in lending. Parts of Sands’ advocacy efforts included standing before Congress to explain how small businesses can be vital in creating pathways for inclusive growth and economic stability.