City National Bank, a major financial institution, has announced a strategic $5m impact investment in Lendistry, a minority-led fintech firm.
The investment of $5m will be directed towards providing individual loans under $100,000. This initiative is particularly focused on aiding minority- and women-owned businesses located in low-income neighborhoods, which often face challenges in securing funding through traditional banking channels.
Lendistry operates as a Community Development Financial Institution (CDFI. The company specializes in offering accessible financial products to small businesses and managing grant programs for government agencies. Based in a Los Angeles Opportunity Zone, Lendistry leverages technology and strong community partnerships to bridge the gap in capital access.
The funds from City National Bank will be used to enhance Lendistry’s loan offerings, particularly for those businesses that require smaller loan amounts which are typically difficult for traditional banks to handle due to operational and regulatory constraints.
Lendistry CEO Everett K. Sands, said, “We’re proud to work with financial institutions like City National Bank who share our mission.
“The entrepreneurs and small businesses we serve need loans in lower amounts to achieve their goals and reach the next level, but these loans are difficult for traditional banks to provide because of operational and regulatory barriers. As a fintech and CDFI with deep roots in California, we’re able to work with City National to fill that gap.”
David Cameron, head of consumer banking at City National Bank, said, “At City National Bank, we recognize the critical role small businesses play – they are the backbone of our local economies. We are pleased to be able to help fuel their growth, particularly for business owners in under-resourced communities.”
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