The private investors were led by Steven Sugarman. The founding investors, which include Jeffrey Seabold, Mario De Tomasi, Scott Simonich, Marshall Geller, and Lawrence Taylor, have committed to provide $20 million in equity to the venture.
The platform will focus on lending to unbanked and underbanked borrowers such as those with low incomes, minorities including African-Americans, Hispanics, and Southeast Asians, and women. NDC and NAAC said that borrowers who unable to access traditional sources of capital are estimated to currently account for more than $100 billion in annual lending opportunities.
“It has been my dream to help enable these underserved and minority homeowners get the credit they deserve at rates they can afford. This will be the gold standard of community development.,” NDC and NAAC President Faith Bautista said.
The platform’s Community Advisory Board will be chaired by Bautista. Vice-chairs will include Pastor Mark Whitlock, Gil Vasquez, NDC Chair Jin Sung, and NAAC Co-Chair Jeff Lim.
The venture will seek federal certification as a Community Development Financial Institution and membership with the Federal Home Loan Bank of San Francisco.
The NDC and NAAC said they will continue to seek partnerships with social impact investors, banks, and other corporations to respond to the 25% of the population that the Federal Deposit Insurance has deemed unbanked or underbanked.
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The National Diversity Coalition (NDC) and the National Asian American Coalition (NAAC) have partnered with private investors and banking professional to establish a lending platform targeted to underserved homeowners and small businesses.