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2024 Small Business QLICI of the Year

NMTC Loan Fund 1

Location: Los Angeles

 

CDEs:
B.S.D. Capital, dba Lendistry
USBCDE, LLC

2024 QLICI Awards - Small Business - winnerLendistry used half its NMTC allocation to fund QLICIs made through the NMTC Loan Fund 1, which is capitalized by NMTC equity and Lendistry capital. This fund allows Lendistry to leverage the NMTC equity to make below-market-rate loans to small businesses.

B.S.D. Capital, doing business as Lendistry, and USBCDE, LLC combined to allocate more than $23 million in NMTCs to NMTC Loan Fund 1, which closed 15 small business loans. Funded businesses were primarily small businesses and nonprofits in highly distressed areas that didn’t meet Lendistry’s traditional underwriting standards. More than 300 living-wage jobs were created through those efforts.

Small businesses have historically been unable to access new market tax credit subsidy because, often, the dollar amounts requested by small businesses are lower than most CDE deployment thresholds, and transaction costs, which are generally fixed, often erode the net benefit to the business. 

Lendistry intends to follow the investment in the fund by recycling the small NMTC loans in the seven-year NMTC compliance period to increase the impact of the subsidy to at least 100 businesses in critical need of capital.

 

Honorable Mention: Small Business

An NMTC investment by Advantage Capital will help FlyGuys–which connects data seekers with data providers to help businesses make informed decisions, streamline operations and achieve their goals–scale up its operations. FlyGuys was able to move to a larger facility in Lafayette, Louisiana, and expand its workforce thanks to the infusion of NMTCs.

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