Black Led Fintech, Lendistry has dispersed $9 billion in funding for small businesses
Lendistry is a black-led fintech and technology-enabled small business and commercial real estate lender with Community Development Financial Institution (CDFI) and Community Development Entity (CDE) certification.
During the COVID-19 pandemic, the Lendistry Paycheck Protection Program (PPP) provided loans to small businesses in all 50 states, becoming the #8 PPP lender in the nation in 2021.
Everett K. Sands, CEO of Lendistry, has over 20 years of lending experience, including stints with both national and local banking institutions.
Through his leadership, Lendistry has reached #2 among SBA Community Advantage lenders nationwide, received membership in the Federal Home Loan Bank of San Francisco, developed proprietary technology and closed several strategic partnerships with over 34 community and national banks.
In this interview, Everett discusses the creation of the company, its growth through strategic partnerships, and future plans to expand its offerings to better support small businesses.
What gaps did you create Lendistry to fill?
There are many loopholes in the financial industry that historically make it more difficult for minority-owned businesses to access capital, and they still happen today. Bank consolidations have caused community banks, which are more likely to make loans in lower amounts than a growing business is looking for, to close their doors.
Underserved communities don’t have bank locations in their neighborhoods, and even if they did, today’s business owners are too busy running their businesses in banking hours to seek help to apply. Systemic biases continue to cause minority and female business owners to be seen as riskier, making them less likely to be approved even if they can find a bank to work with. Lendistry was created to overcome all these barriers.
We use technology to make our process accessible to everyone and to empower our team to guide applicants through the process. We set out to meet business owners where they are – online – and offer lower loan amounts with underwriting processes that give them a fair chance, while providing a community banking experience.
How has the business lending space evolved since you started your business?
Credit profile (the company’s ability to repay, handle various market conditions, repayment history to the owner and management team) was previously the most important determining factor in lending. It is still important, but the factors that traditional financial institutions create are also based on operational efficiency.
Is the business run in a cost-effective manner, and are its processes free of waste and redundancy? They ask these kinds of questions in the lending process now more than they used to.
Describe Lendistry’s growth in recent years. How much have strategic partnerships played a role in this growth?
We started in 2015, and in early 2020 we were a small team of around forty people spread over two offices in Southern California. Because we are not a bank and we do not take deposits, strategic partnerships are essential for deploying capital. At the time, Lendistry had established itself in CA as a partner for financial institutions looking to ensure their capital reached underserved communities in an impactful manner.
When the pandemic started, that business model was ideal for responding to disruptions. Strategic partnerships with banks and government agencies enabled us to step up and provide a quick solution, especially with PPPs and grant programs.
We have now funded over 600,000 small businesses and provided over $9 billion in funding. We have offices and local presences in NY, MD, TX, and a team of hundreds ready to help businesses from coast to coast.
What are your future plans for the company?
The gaps I mentioned earlier cannot be filled simply by providing small business loans. Small businesses are developing ahead of the financial industry, and predatory lenders are doing a good job of keeping up and making themselves look like the only option, which only holds businesses back because after their quick funding comes unfair terms. So at Lendistry, our aim is to expand our offer of lending products and be a responsible alternative in as many lending areas as possible.
What advice do you have for other fintech entrepreneurs?
Focus on the needs of your customers and clients as the foundation of your technology. This involves listening to them, paying attention to how they work and building your technology to solve their problems.
Don’t try to convince your clients and customers that they need to adopt your technology and change their processes and structures. Lendistry is a customer-centric ecosystem, which is how we are able to grow and build trust.
