Black Money Series: Today's History Makers Black History Month Series w/Everett Sands

Justin Minott from the African American Alliance of CDFI CEOs interviews Everett Sands, CEO of Lendistry, focusing on his journey, mission, and the impact of his work. Here is a brief recap of this powerful conversation:

JUSTIN: Share with us how you came to be in your current role and the journey that led you here. Give us insight into the backstory of your career evolution.

EVERETT: So, starting as a kid in DC, I ventured to a boarding school in New Hampshire, then expanded my horizons with time in Japan as an exchange student. Upon college in Philadelphia, diverging from the typical Wall Street path, I delved into Residential Lending. Eventually, I served on the board of the first African American bank in Maryland, Ideal Federal, gaining invaluable insights from seasoned pioneers. Building on this experience, I developed a mortgage company into a top 10 lender in the mid-Atlantic region before transitioning to leadership roles at Wells Fargo. In 2015, I found myself winning the lottery of opportunities that led me to where I am today."

JUSTIN: Let's dive into the inception of your industry. What drove you to start it? What gaps in the market did you identify, and what motivated you to fill them?

EVERETT: The access to capital gap, in my view, is more about the decline of community banks than the reluctance of larger national players to lend. Community banks were the primary lenders, while national banks funded them through participation syndications. This shift influenced my perspective. Larger banks were becoming more risk-averse, focusing on larger loans, which excluded smaller borrowers. This contradiction inspired me to launch lenders that would partner with banks navigating operational efficiency changes.

JUSTIN: How has your strategy evolved over the past decade?

EVERETT: Transitioning into the CDFI industry felt somewhat disorienting after my background in mainstream banking—I hail from Wells Fargo, boasting $1.7 trillion in assets and extensive access to capital. In the banking world, we were accustomed to participating in loan syndications and forming partnerships. However, upon entering the CDFI world, I encountered a starkly different landscape where everything seemed tightly bound to the balance sheet. I found myself questioning this discrepancy: why, with our immense resources, weren't we taking comparable risks? Despite our collective hard work, troubling trends persist—the wealth gap widens, the pay gap exacerbates, and it feels like everything is spiraling in the wrong direction. Despite having significant resources, I realized we weren't taking enough risks to support underserved communities. Following George Floyd's events, I sought impactful ways to effect change through finance, prompting us to enhance our approach and leverage technology to reach more people.

JUSTIN: Could you elaborate on how you utilized technology to scale operations? I understand it's been successful, but can you delve into the initial hurdles and investments required before seeing returns? 

EVERETT: Now, regarding leveraging technology, it's about turning challenges into opportunities. We identified inefficiencies in the lending process, especially in commercial loans. On the downside, I noticed disparities in how industries leverage technology. For instance, in residential lending, the process is standardized nationwide, making it accessible to all. However, when I transitioned to commercial lending, it was apparent that each SBA loan application followed a unique process. This inefficiency was a barrier to growth, especially considering the vast difference in loan volumes between residential and SBA loans. We started small, raising funds incrementally, and faced rejections, but eventually secured major lead sources. The pandemic allowed us to invest boldly in technology, leading us to become a significant PPP lender and process thousands of applications quickly.

JUSTIN: Can you explain why you chose to pursue the CDFI route and how this choice can be scaled for other Black-led CDFIs aiming to achieve similar success?

EVERETT: You have to decide who you want to emulate if you're aiming for significant impact and scale in your endeavors. This is a fundamental lesson in business development. As I delved into the world of fintech, often referred to as FinTech 1.0, I aimed to address scalability issues. However, I quickly realized their focus was on disrupting traditional banking systems rather than enhancing them. So it was essential to blend the strengths of community banking and fintech. Research is crucial for understanding best practices and ensuring capital aligns with scalability goals. As businesses grow, adaptability across all aspects—team, systems, leadership—is vital for success.

JUSTIN: What advice would you give younger Everett?

EVERETT: I would advise my younger self to engage in more conversations with a diverse range of individuals and organizations. These interactions provide valuable insights, lessons, and opportunities for growth. It's also important to understand your own personality and how you respond to rejection. If hearing 'no' discourages you, it's essential to find ways to recharge and stay motivated. Whether it's treating yourself to an ice cream or finding solace in music, taking care of your mental well-being is paramount. Ultimately, I'd tell myself that success isn't just about emulating the end result; it's about replicating the process. It isn't handed to you on a silver platter—it's earned through hard work, perseverance, and unwavering determination. 

Thank you for reading! You can watch the full interview HERE. Be sure to connect with Everett and follow Lendistry to stay connected to the impact.