The partnership between Lendistry and First Independence Bank is aimed at addressing the financial needs of underserved small business owners, particularly those from minority-owned, women-owned, and low-income communities. This collaboration provides an alternative financing option for businesses that may not initially qualify for traditional commercial financing from First Independence Bank.
Here are some key points from the announcement:
- Partnership Purpose: Lendistry and First Independence Bank have joined forces to serve the growing community of underserved small business owners, with a focus on minority-owned and women-owned businesses as well as those located in low-income areas.
- Impact on Underserved Businesses: The partnership aims to address the significant challenges faced by historically underserved businesses. This is particularly important because data indicates that business ownership in the Black community rose to 30% above pre-pandemic levels in 2021, but a substantial number of new businesses faced capital-related challenges and, in some cases, failed.
- CDFIs and MDIs Collaboration: The partnership highlights the importance of strong collaboration between Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) in addressing these challenges and supporting minority-owned businesses.
- Focus on Responsible Capital Access: The collaboration is focused on providing not only accessible but also responsible capital to small businesses, which can have a positive impact on individual businesses and the broader business ecosystem.
- National Bankers Association Involvement: The National Bankers Association is involved in this effort to facilitate similar partnerships between Lendistry and other minority banks across the nation. This indicates a broader commitment to supporting minority-owned financial institutions and businesses.
- About Lendistry: Lendistry is a minority-led fintech that provides innovative lending products and grant access for small businesses across the United States. They are known for deploying funds efficiently and equitably and hold various certifications, including being a Community Development Financial Institution (CDFI).
- About First Independence Bank: First Independence Bank is the seventh largest Black-owned commercial bank in the U.S., headquartered in Detroit, Michigan. They offer a range of banking services, including personal loans, mortgages, and more. The bank has a digital presence through its mobile app.
- About National Bankers Association: The National Bankers Association is an organization focused on the representation and advocacy of Minority Depository Institutions (MDIs), including those owned and operated by various minority groups.
About Lendistry
This partnership represents a concerted effort to support underserved businesses, particularly those from minority communities, by providing them with access to responsible financing options.