Community development lenders (CDFIs)
Loans from community development financial institutions: mission-driven lenders certified by the US Treasury that serve low-income communities and people who find it hard to get finance elsewhere, often with advice alongside.
- Secured on assets
- Personal guarantee likely
How it works
A community development financial institution (CDFI) is a lender certified by the CDFI Fund, part of the US Department of the Treasury. CDFIs include community development banks and credit unions, which are regulated as banks and credit unions are, and non-regulated loan funds and venture capital funds. There are certified CDFIs in all 50 states, the District of Columbia, Guam and Puerto Rico, and the CDFI Fund also supports Native CDFIs that serve Native communities.
To be certified, a CDFI must:
- have community development as its main mission,
- be a lender or other financing organization that mainly serves one or more target markets, such as low-income communities or people who lack access to finance,
- provide development services, such as training or business advice, alongside its financing,
- stay accountable to the communities it serves, and
- not be a government body or controlled by one (tribal governments excepted).
For businesses, CDFIs offer loans and lines of credit, including to owners who lack access to other finance. Certification lets a CDFI apply for awards from the CDFI Fund, which help pay for its lending, so loan terms and prices vary from one CDFI to another.
Finding one: the CDFI Fund publishes the list of currently certified CDFIs, and a page on finding CDFIs that serve your area.
Upsides and downsides
Upsides
- Set up to lend to businesses and people that banks often turn down
- Advice and training often come with the loan
- Local lenders that know their communities
Downsides
- Only serves its own target market, so not every business qualifies with every CDFI
- Loan sizes and terms vary widely between lenders
- May take longer than an online lender
Risks
- A secured loan puts the assets pledged at risk if the business cannot repay
- A personal guarantee makes you liable if the business cannot pay
What it costs
- How it is priced
- Interest and fees set by each CDFI, which vary with the lender, the loan and your circumstances
- Costs that are easy to miss
- Arrangement or closing fees, which vary between lenders
- Some CDFIs ask you to take part in training or advice sessions
Varies by lender, from small loans to larger business loans.
Have a quote? True cost of a loan: work out the APR and total cost
Does it fit?
Could fit when
- A bank has turned you down
- Your business serves or is based in a community that finds it hard to get finance
Unlikely to fit when
- You need more than many community lenders can provide
- You need the money within days
- Your business is outside every local CDFI's target market
Who can use it
- Business types: Sole proprietorship, Partnership, LLC, S corporation, C corporation, Benefit corporation, Cooperative, Nonprofit
- Each CDFI serves its own target market, often defined by place, income or the people it serves
- Lenders still check that the business can repay
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all government-backed and community lending
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- Business plan
- Financial records
- Cash flow forecast
Regulation and protections
Regulators: U.S. Department of the Treasury; Federal Deposit Insurance Corporation (FDIC); National Credit Union Administration (NCUA); Consumer Financial Protection Bureau (CFPB).
Who runs it: Private providers, nationwide.
CDFIs are certified by the Treasury's CDFI Fund. Community development banks and credit unions are regulated as banks and credit unions; loan funds are not. The Equal Credit Opportunity Act (Regulation B) covers business credit from all of them, so a lender that turns you down must tell you why or how to ask.
Federal Truth in Lending rules (Regulation Z) do not cover business loans. Ask for the rate, fees and total cost in writing.
Types of provider: Community development loan funds; Community development banks and credit unions; Native CDFIs.
Also consider
What has changed
No changes since this page was published. It was last checked against its sources on October 17, 2026.
Sources
- CDFI Fund: CDFI Certification (eligibility, list of certified CDFIs) · checked October 17, 2026
- CDFI Fund: About us (programs, including Native Initiatives) · checked October 17, 2026
- FDIC: Money Smart for Small Business, Module 5: Small Business Financing (participant guide) · checked October 17, 2026
- 12 CFR 1002.9 (Regulation B): notifications, including to business credit applicants · checked October 17, 2026
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