Boys & Girls Clubs of Puerto Rico gets $7M from Lendistry
Los Angeles-based, minority-led fintech firm B.S.D. Capital Inc., which does business as Lendistry, has announced a $7 million allocation to the Boys & Girls Clubs of Puerto Rico (BGCPR) to finance small business and job training programs.
Lendistry worked with U.S. Bank to provide the financing through New Markets Tax Credits (NMTC), a low-cost financing method that seldom reaches the island. In recent years, Puerto Rico has ranked 49th among all U.S. states and territories in terms of the number of NMTC projects.
The funds will enable BGCPR to implement additional programs to encourage entrepreneurship and support its expanding 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,” said 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,” Sands added.
The low-cost funds received by BGCPR through Lendistry will advance BGCPR’s multifaceted plan to promote 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’re 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,” said Olga I. Ramos-Carrasquillo, president of BGCPR.
“Their commitment to our organization and the communities we serve is truly commendable. With their generous allocation of $7 million in New Markets Tax Credits to our organization, Lendistry has shown a deep understanding of the transformative power of investing in the future of our youth,” Ramos-Carrasquillo said.
“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,” she added.
U.S. Bank, the sole investor in the NMTCs allocated to Lendistry, supports the 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’re 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,” Carson added.
The U.S. Department of the Treasury’s NMTC Program aims to break the cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies, the agency stated.
“The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs). The credit totals 39% of the original investment amount and is claimed over a period of seven years,” the Treasury stated.
Jeff Monge of Monge Capital served as consultant, connecting the financial institutions and helping with the project.
“Monge Capital is proud to work with Lendistry and U.S. Bank to provide an innovative use of NMTCs,” said Monge. “This critical working capital will help BGCPR with their mission-driven services.”
The 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, Lendistry stated.
