Amazon, Lendistry Expand Small Business Lending Program

Amazon is expanding its Community Lending program to reach more sellers.

Launched as a pilot last year in partnership with minority-led community development financial institution (FI) Lendistry, the program supports “urban and rural small businesses in socially and economically distressed communities through short-term loans at competitive and affordable rates,” the retail giant said in a Thursday (Sept. 29) news release.

See also: Amazon Partners With Lendistry on Short-Term Loan Program for SMBs

Since its launch, the program has distributed upward of $35 million to more than 800 sellers, exceeding the pilot’s goal of $10 million. The new goal is to loan more than $150 million in the next three years to small- to medium-sized businesses (SMBs) that sell on the Amazon store in the United States, the release stated.

Amazon sellers account for more than 50% of all units sold on the Amazon store. SMBs that received loan approval through the program can use the money to expand their businesses and cover other business needs, including staffing and operations costs, inventory, product development and manufacturing, and marketing efforts, according to the release.

Loans will range from $10,000 to $250,000 with terms of up to five years, the release stated.

“When Amazon came to us with the idea for the Amazon Community Lending Program, we knew it would make a significant difference for small businesses that need responsible capital to grow,” said Lendistry CEO Everett K. Sands in the release. “Together, we’ve done impactful work to expand opportunities for growing businesses and give them a responsible lending option.”

Earlier this year, Amazon debuted the Amazon Seller Wallet, a financial tool meant to help sellers convert, manage and disburse funds from their seller accounts more easily, while also better facilitating cross-border commerce. The wallet lets merchants hold, view and transfer money directly to their bank accounts within Seller Central.

Read more: Amazon Seller Wallet Launches With Bank Transfers

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