Press Release (ePRNews.com) - Brea, CA - Jun 06, 2017 -
“We’re not competing with banks, we’re working with them to offer small business owners affordable loans.”
Lendistry closed several state guaranteed loans this past May, marking another milestone in the company’s expansion of loan products offered to small business owners. Funding provided to California small businesses last month created an estimated 42 jobs and retained over 75 current employees.
The southern California online small business lender is able to leverage state and federal loan guarantee programs with its CDFI and SBA designations. The Community Development Financial Institution (CDFI) designation is awarded to qualifying lenders by the U.S. Department of the Treasury with the intent of increasing the access small businesses have to funding, particularly those in historically underserved communities, a mission aligned with Lendistry’s culture. The CDFI designation allows Lendistry to leverage loan guarantees offered by the State of California, providing lower rates for business owners and safer investments for partnering banks.
As a Small Business Administration approved lender, Lendistry is also able to utilize federal loan guarantees for the same advantages. SBA loans are uniquely designed to assist small businesses with little or no collateral and have more flexible credit requirements making funding more accessible to business owners looking to grow their companies.
Since the Great Recession of 2008, the banking system has undergone a shift. Fewer banks offer small business loans under $1MM due to low profitability and the expense of originating the loans. “We’re not competing with banks, we’re working with them to offer small business owners affordable loans. Banks do want to invest in their communities and we help them do that,” said Everett K. Sands, Lendistry’s CEO. “Our designations allow us to offer guaranteed loans, which provide partnering banks with investment security in a market largely cost prohibitive for them to enter.”
Banks can also capitalize on Lendistry’s access to guaranteed loans by investing in their CRA Loan funds. As an added benefit, investing in Lendistry’s Loan Funds affords banks credit toward CRA examination requirements. “Banks can not only get credit for their investment in Lendistry’s CRA Loan Funds; they can also choose to utilize the credit toward the community lending test,” explains Mr. Sands. “Our business model is profitable for partnering banks and benefits small business owners and their communities.”
Banks and small business owners can learn more about guaranteed loans for small businesses by contacting Lendistry at Lendistry.com, firstname.lastname@example.org, or 844.662.7297.