Lendistry Receives CDE Certification Providing Tax Incentive for Impact Investors
LOS ANGELES, July 25, 2019 (Newswire.com) - Lendistry today announced it received certification as a Community Development Entity (CDE) from the Community Development Financial Institutions Fund of the United States Department of the Treasury. The CDE certification enables Lendistry to authorize a New Markets Tax Credit (NMTC) to investors equal to 39% of the original amount invested.
Lendistry will use capital from CDE equity investments to provide financing to businesses operating in low-income communities across the nation with more favorable rates and terms than found in the traditional marketplace. In exchange for equity investments, investors receive a NMTC which is taken over a 7-year period at a credit rate of 5% of the original investment amount in each of the first three years and 6% of the original investment amount in each of the final four years.
Incentives like the NMTC are helping to drive growth in impact investing. According to the Global Impact Investing Network, a nonprofit organization dedicated to increasing the scale and effectiveness of impact investing, the global market is over $500 billion. Since 2003, the NMTC Program has generated $8 of private investment for every $1 of federal funding, created or retained 750,000 jobs, and financed over 5,400 businesses demonstrating the shared benefits of mission-based investing.
Lendistry offers both equity and fixed income solutions to meet the rising demand of individual and institutional impact investors. Banks, pension funds, and advisors have growing numbers of clients who want their investments to earn a return while also making a positive impact on their communities. Similarly, foundations can leverage assets to meet mission-based goals while growing their capital. Lendistry provides opportunities specific to investors with social strategies addressing underserved communities, minority business owners, and women entrepreneurs.
Lendistry is a minority-owned, technology-enabled CDFI small business and commercial real estate lender that has financed $100MM+ to small business owners and their underserved communities. Headquartered in a Los Angeles Opportunity Zone with future offices slated for Baltimore and Philadelphia Opportunity Zones in 2020, Lendistry ranks 2nd nationwide in SBA Community Advantage lending and is a member of the Federal Home Loan Bank of San Francisco.
Categories: Banking, Finance, Insurance