Amazon and Lendistry have announced a joint pilot program called ‘Amazon Community Lending’ aimed at driving growth opportunities for small and medium-sized businesses (SMBs) selling in Amazon’s store.
The program is a new business financing option through Amazon Lending. Amazon Community Lending will provide US-based Amazon sellers (nearly all of which are SMBs) access to short-term loans of up to US$100,000 to help sustain and grow their businesses.
Lendistry is an established minority-led Community Development Financial Institution which serves urban and rural small businesses in socially and economically distressed communities. The majority of the funds Lendistry has historically disbursed have gone to traditionally low-to-moderate income and other historically disadvantaged business owners and the communities they serve, including African American and Hispanic-Latino populations, and individuals from CDFI-designated investment areas.
“We are thrilled to launch the Amazon Community Lending pilot program in the US to provide greater access to critical working capital and make the opportunity of selling in Amazon’s store more accessible to even more US small businesses,” said Dharmesh Mehta, Amazon’s vice president for worldwide consumer trust and partner support. “Lendistry shares our commitment to championing underrepresented populations of business owners, knowing they often lack access to traditional methods of accessing capital and similar economic opportunities.”
“Amazon came to us with this incredible idea,” said Everett K. Sands, founder and CEO of Lendistry. “They’re on a mission to support and empower minority-owned businesses, just like us, so it was a great fit. The Amazon seller community is the perfect place to make these kinds of financing programs available that can truly make a difference for a lot of businesses.”
Amazon sellers account for more than half of all units sold in Amazon’s store. Amazon Lending began offering loans to businesses selling in Amazon’s store in 2011, based on the idea that an infusion of capital at the right moment could put small business sellers on the path to success.
