Lendistry Closes $85 Million Senior Debt Offering in One of the Largest Institutionally-Led Capital Raises by a CDFI in 2022

The investor consortium included 25 banks, insurance companies and ESG-focused institutions. This innovative structure provides attractive financing for Lendistry. Proceeds will support underserved small business lending initiatives across America.

Lendistry, a minority-led and technology-enabled small business and commercial real estate lender with Community Development Financial Institution (CDFI) and Community Development Entity (CDE) certification, announced today the closing of a private placement (the "Offering") of $85 million aggregate principal amount of unsecured Fixed to Floating Rate Senior Notes due 2027 (the "Notes"). The Notes received an investment grade "A" rating from Egan Jones and will mature on Oct. 31, 2027, unless earlier redeemed at Lendistry's option after two years.

Investors in the Notes include 25 socially responsible banks, insurance companies and ESG-focused institutions, including those looking to make impactful and socially responsible investments that elevate small business owners and underserved businesses.    

Since inception in 2015, Lendistry has deployed nearly $9 billion in loans and grants to approximately 600,000 small businesses supporting approximately 2 million jobs. Lendistry serves as an administrator of billions of dollars in grant and loan funds for federal, state and local governments and is the parent entity to the country's only African American-led, SBA-designated Small Business Lending Company.  

Everett Sands, Lendistry's CEO, stated, "We couldn't be more excited to announce this unique round of funding for Lendistry, which provides cost-efficient capital that will amplify our platform in providing access to capital to underserved small businesses and their communities at responsible rates and terms. The entrepreneurial spirit is strongest in the small business community, and especially many underserved markets that we are proud to support." Mr. Sands further commented, "As our first institutionally led capital raise, we are elated with the amount of participation and its execution, which exemplifies Lendistry's scarcity value in our ability to raise attractive capital, at size, despite a difficult capital markets backdrop. We thank our new partners for their participation as Lendistry continues to elevate its network to reach more underbanked businesses across the United States."

Performance Trust Capital Partners served as exclusive financial advisor to Lendistry and sole placement agent in the Offering. Honigman, LLP served as Lendistry's legal counsel in the Offering. Luse Gorman, PC served as legal counsel to Performance Trust.

About Lendistry 
B.S.D. Capital, Inc. dba Lendistry (lendistry.com) is a minority-led and technology-enabled small business and commercial real estate lender with Community Development Financial Institution (CDFI) and Community Development Entity (CDE) certification. Lendistry is a member of the Federal Home Loan Bank of San Francisco, headquartered in a Los Angeles Opportunity Zone. During the COVID-19 pandemic, Lendistry provided Paycheck Protection Program (PPP) loans to small businesses in all 50 states, becoming the #8 PPP lender in the country in 2021. Lendistry was selected by the states of California, Pennsylvania and New York to administer their small business relief programs, which distributed grants to businesses that lost significant revenues during the pandemic. As a previous SBA Community Advantage lender in California, Lendistry was historically one of the top-ranked lenders in that program in the nation, providing responsible financing to small business owners who needed responsible capital to grow. Lendistry and its nonprofit partner organization, The Center by Lendistry, are dedicated to providing economic opportunities and progressive growth for underserved urban and rural small business borrowers and their communities. In 2022, Lendistry SBLC, LLC, a subsidiary of B.S.D. Capital, Inc., became the nation's only African American-led SBA designated Small Business Lending Company.

No Offer or Solicitation

The Notes were offered and sold only to accredited investors and to qualified institutional buyers. The Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction.  Unless they are registered, the Notes may be offered and resold only in transactions that are exempt from registration under the Securities Act and applicable state securities laws.

Forward-Looking Statements

Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements, which are based on various assumptions (some of which are beyond Lendistry's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms.  Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions and FinTech companies, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, changes in the financial and securities markets, including changes with respect to the market value of our financial assets, and the availability of and costs associated with sources of liquidity and the disruption to financial markets and economic activities associated with the coronavirus pandemic. Lendistry undertakes no obligation to update or carry forward-looking statements, whether as a result of new information, future events or otherwise.

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Source: Lendistry