LOS ANGELES, July 17, 2023 (Newswire.com) - Lendistry announces today that $7 million of its New Markets Tax Credits (NMTC) allocation has supported a low-cost loan to fund multiple improvements at Boys & Girls Clubs of Puerto Rico ("BGCPR"). With the funds, BGCPR will implement additional programs to foster entrepreneurship and support its growing operations.
"We're proud to help bring this game-changing capital to a 55-year legacy organization that works hard to serve its participants: children and youth from underserved communities in Puerto Rico," says Everett K. Sands, CEO of Lendistry. "When community resources have the support they need to grow, a thriving ecosystem is created. Lendistry is proud to be part of Boys & Girls Clubs of Puerto Rico's story, and we can't wait to watch the kids become game changers themselves."
A Vital Resource for Puerto Rico's Next Generation of Entrepreneurs
Founded in 1967, Boys & Girls Clubs of Puerto Rico has changed the lives of more than 80,000 children in the state's most vulnerable communities. The organization's after-school programming serves young people from ages 6 to 18 in 12 Clubs across the island, providing an encouraging and safe place to grow as leaders and achieve their academic, professional, and personal goals. Because 90% of participants live under poverty, the Club has added educational, social, economic, and family services over the past decade in response to the community's need. This holistic approach is aimed to ensure high school graduation, college entrance and job placement and includes a wide range of services, including tutoring, hot meals, risk prevention, and job readiness training.
Like many volunteer community organizations, BGCPR serves its members in every way it can with limited resources, but financial assistance is necessary to take its impact from job preparation to job creation. The low-cost funds BGCPR received through Lendistry will allow BGCPR to realize its multifaceted plan to foster small business ownership:
- A new curriculum that teaches 90 participants to identify need in their community or market, devise and validate a solution, create a viable product, and sell it;
- Small business management wraparound services that focus on training, mentoring and access to capital;
- Job training center expansion to provide integrated services and employee-related workshops for 100 youth and adult participants annually.
"We are immensely grateful to Lendistry, in collaboration with U.S. Bank, for their unwavering support in financing small business and job training programs for Boys & Girls Clubs of Puerto Rico. Their commitment to our organization and the communities we serve is truly commendable. With their generous allocation of $7 million of New Markets Tax Credits (NMTC) to our organization, Lendistry has shown a deep understanding of the transformative power of investing in the future of our youth. Together, we are creating opportunities and empowering young minds to build a brighter tomorrow. On behalf of Boys & Girls Clubs of Puerto Rico, we extend our heartfelt thanks to Lendistry and U.S. Bank for their invaluable partnership and dedication to making a lasting difference," explained Olga I. Ramos-Carrasquillo, President of BGCPR.
The Impact of New Markets Tax Credits
U.S. Bank is the sole investor in the NMTCs, allocated to Lendistry, that supports this loan and has ultimately provided the Boys and Girls Club of Puerto Rico with $6,860,000 in low-cost funding.
"U.S. Bank believes that everyone deserves an opportunity to reach their full career aspirations and potential, and we are thrilled to work with Lendistry to provide Boys & Girls Clubs of Puerto Rico with working capital for its entrepreneurship and workforce development programs," said Bill Carson, senior business development officer with U.S. Bancorp Impact Finance. "We are proud to support this endeavor as an NMTC investor, and we expect that this investment in BGCPR will support hundreds of participants in reaching their academic, personal and professional goals."
Jeff Monge of Monge Capital acted as consultant, connecting the financial institutions and helping with this impactful project. "Monge Capital is proud to work with Lendistry and U.S. Bank to provide an innovative use of NMTCs," says Monge. "This critical working capital will help BGCPR with their mission-driven services."
Boys & Girls Clubs of Puerto Rico project aligns with Lendistry's overall mission to provide both financing and financial education. The project supports an effective organization that goes above and beyond to elevate its local community and create wealth.
Innovative financial solutions don't often reach the island, with Puerto Rico ranking 49th of all U.S. states in terms of number of NMTC projects in recent years.1 Due to the potential to support below-market-rate loans, and the rarity of use in Puerto Rico, New Markets Tax Credits are an effective way to spur greater investment in undercapitalized Puerto Rican communities. Lendistry encourages its fellow financial institutions to find ways to support these undercapitalized communities so future generations can thrive.
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 its 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 Boys & Girls Clubs of Puerto Rico
In 55 years of service in vulnerable communities, Boys & Girls Clubs of Puerto Rico has become a movement that helps eradicate poverty from a multigenerational perspective. Its educational, comprehensive development and socio-emotional support programs and experiences impact children and youth from two months to 18 years of age, as well as their families. For adults 18 years and old, it also offers job training and employability. Last year the organization served more than 12,000 children, youth and families; and employs over 300 professionals on the Island. It has 19 service centers: eight Head Start and Early Head Start centers in San Juan and 11 Clubs located in Las Margaritas, Luis Llorens public complexes in San Juan, and F.D. Roosevelt public complex in Mayaguez; San Lorenzo, Carolina, Arecibo, Aguas Buenas, Bayamón, Loíza, Isabela and Vieques. For more information, visit bgcpr.org.
About U.S. Bancorp Impact Finance
U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, is an industry leader in providing financial solutions that help create positive impact for communities and the environment. For 35 years, its tax credit investments and syndications, lending and other financial solutions have helped create affordable housing, spur economic activity in underserved communities, restore historic buildings, develop renewable sources of energy and strengthen community development financial institutions (CDFIs) nationwide. As of March 31, 2023, it has $41.6 billion in tax credit equity investments; $4.2 billion in current loan commitments to affordable housing, renewable energy projects, community development financial institutions (CDFIs) and other community development intermediaries; and has raised $15.7 billion of federal tax equity to support social and environment projects in communities nationwide. Learn more at usbank.com/impactfinance.
1 "Where Do New Markets Tax Credit Projects Go? Evaluating the NMTC Program". Brett Theodos, Christina Plerhoples Stacy, Daniel Teles, Christopher Davis, and Ananya Hariharan, April 2021 https://www.urban.org/sites/default/files/publication/103995/where-do-new-markets-tax-credit-projects-go_0.pdf
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Original Source: Lendistry Collaborates With U.S. Bank to Finance Small Business and Job Training Programs for Boys & Girls Clubs of Puerto Rico
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