Lendistry and First Independence Bank announced today that the two financial institutions have formed a partnership to serve the rapidly growing community of underserved small business owners, including minority-owned and women-owned enterprises, and businesses in low-income areas. Through its partnership with the fintech, First Independence Bank can offer its customers a more flexible alternative when they don't yet qualify for the bank's commercial financing options.
For businesses that have been historically underserved in the financial industry, the possibilities are as high as the stakes. According to recent data out of the University of California, business ownership in the Black community rose to 30% above pre-pandemic levels in 2021. At the same time, CBInsights reports that in the same year, 38% of new businesses failed because they ran out of capital. As a minority-led fintech and an MDI based in Detroit, Lendistry and First Independence Bank see a clear path forward, led by strong partnerships between CDFIs and MDIs.
"Capital that is not only accessible but also responsible is a game changer for individual small businesses and for the entire business ecosystem," says Everett K. Sands, CEO of Lendistry. "First Independence Bank shares Lendistry's vision of filling gaps in capital access so new businesses can grow, create jobs and innovate for their communities."
"First Independence Bank knows the importance of having sound, strategic partnerships that mutually benefit the respective customers we serve, and do so more broadly through this newly established effort with Lendistry," adds Dimitrius Hutcherson, Executive Vice President, CAO/CTO at First Independence Bank.
Through the work of the National Bankers Association Innovation Council, the Association and Lendistry collaborate to help minority banks innovate and digitize to better support customers. "Building strong minority-owned small businesses and eliminating the racial wealth gap is central to the partnership between Lendistry and First Independence Bank," says Nicole A. Elam, President, and CEO of National Bankers Association. "We're eager to facilitate similar partnerships with Lendistry and other minority banks nationwide."
About Lendistry
B.S.D. Capital, Inc. dba Lendistry (lendistry.com) is a minority-led fintech that provides innovative lending products and access to grant programs for small businesses nationwide. Headquartered in a Los Angeles Opportunity Zone, Lendistry uses technology and community partnerships to overcome systemic gaps that inhibit access to capital and to empower its customers with responsible financing options. Based on its reputation for deploying funds efficiently and equitably, Lendistry's leadership is often called upon to share their expertise with both government and private organizations. Lendistry has both Community Development Financial Institution (CDFI) and Community Development Entity (CDE) certifications and is a member of the Federal Home Loan Bank of San Francisco. Lendistry SBLC, LLC is an SBA Preferred Lender and the nation's only African American-led SBA designated Small Business Lending Company. In collaboration with The Center by Lendistry, a nonprofit business education organization, Lendistry dedicates itself to providing economic opportunities and progressive growth for underserved urban and rural small business borrowers and their communities.
About First Independence Bank
First Independence Bank is the seventh largest Black-owned commercial bank in the United States. Headquartered in Detroit, Michigan, with its newest locations in Minneapolis, Minnesota, it offers a variety of high-quality banking services from managing accounts to personal loans, mortgages, consumer education and investments. First Independence Bank has three locations and offers banking solutions online and digitally through its mobile app. Established in 1970, the bank continues to be a responsible leader, efficiently serving the financial needs of its community, its businesses, and its customers nationwide. First Independence Bank is a member of FDIC and Equal Housing Lender. For more information visit http://www.firstindependence.com.
About National Bankers Association
Founded in 1927, the National Bankers Association is the voice for the nation's Minority Depository Institutions (MDIs). No other trade association is focused solely on the priorities, federal advocacy, and representation of minority-owned and -operated banks. Members include Black, Hispanic, Asian, Pacific Islander, Native American, and women-owned and -operated banks. MDIs are located across 32 states and the District of Columbia, Puerto Rico, and Guam. For more information, visit nationalbankers.org.