*NEWS: Lendistry Receives a $50M Loan from East West Bancorp for Affordable Small Business Lending
A fintech community development financial institution, known as a CDFI, which provides capital to small businesses and communities that have been traditionally neglected by lenders has received a $50 million credit facility from East West Bancorp.
Lendistry, with HQ in Brea, said the credit facility will help fuel the expansion of its small business lending platform.
“This credit facility is a significant milestone for Lendistry that will boost inclusive and responsible small business financing to business owners and underserved communities nationwide,” Lendistry CEO Everett Sands said in an October 31 press release issued by the company.
Lendistry said it’s profitable and has a sustainable business model with an average loan rate of 10.3% across its SBA, term, line of credit, and CRE product lines.
It touts its ranking as “second nationwide” in CDFI SBA Community Advantage lending. And, claims that more than 70% of its small business owner borrowers are women, minorities and veterans or operate in under-served areas.
Lendistry describes itself as “minority-owned and offers an inclusive small business lending program that emphasizes outreach to diverse business owners and under-served areas.”
Certified by the Department of Treasury as a CDFI and a Community Development Entity (CDE), and as a member of the Federal Home Loan Bank of San Francisco, Lendistry said it “can secure key sources of long term and low-cost capital such as the New Markets Tax Credit, CDFI Bond Fund, and loan guarantees.”
Lendistry, which currently targets a downtown “Los Angeles Opportunity Zone,: said it will expand its strategies by opening offices in Baltimore and Philadelphia Opportunity Zones in 2020.
About East West Bancorp
It’s a publicly owned company with total assets over $42 billion. Its wholly owned subsidiary, East West Bank, is one of the largest independent banks with an HQ in California.