Last updated: October 16, 2026
A CDFI lends where a bank often will not. A CDFI is a community development financial institution. The U.S. Treasury's CDFI Fund certifies these lenders. They serve low-income and underserved communities. In 2026, certified CDFIs operate in all 50 states.
What a CDFI is (and is not)
CDFIs include credit unions, banks, loan funds, and venture capital funds. Each one has a primary mission of serving low-income communities. Certification comes from the CDFI Fund, part of the U.S. Treasury. Certified CDFIs also operate in the District of Columbia, Guam, and Puerto Rico.
The CDFI Fund does not lend directly. It funds CDFIs, and those CDFIs lend to you. The Fund does not make loans to individuals or businesses. A caller who claims to be the CDFI Fund offering you a loan is not the Fund. Read the CDFI Fund FAQ and the CDFI certification page.
Who CDFI loans are for
CDFI loans often fit owners whom banks turn down. That includes newer owners and owners with thin credit files. It also includes owners with damaged credit or little collateral. Many CDFIs offer financial education and business coaching beside the loan.
Each CDFI sets its own rules. Each one sets its own service area and loan sizes. Ask the CDFI what it funds before you apply. See also business loans with no credit history and bad credit business loans.
How to find a certified CDFI
Start with the government's own lists. They point you to certified lenders near you.
- Use the CDFI Fund list of currently certified CDFIs. You can sort that list by name, location, and type.
- Use the CDFI Fund searchable award database. Pick your state, then filter to "CDFI Program."
- Native American, Alaska Native, and Native Hawaiian owners can also search "NACA Program" in that database.
- Use SBA's list of microlenders. Many microlenders are community lenders, and some are CDFIs.
Some CDFIs serve a city only. Others serve a county or a whole state. Check nearby areas if your first search comes up short. The trade group Opportunity Finance Network, named here without a link, also keeps a locator.
CDFI loan vs. SBA microloan
The two paths overlap, but they are not the same. Some CDFIs are SBA microlenders, and some are not. SBA microloans come through nonprofit intermediary lenders.
| Point | CDFI loan | SBA microloan |
|---|---|---|
| Who lends | A CDFI certified by the Treasury CDFI Fund | An SBA-approved nonprofit intermediary lender |
| Loan size | Each CDFI sets its own size | Up to $50,000 |
| Average size | Each CDFI sets its own terms | About $13,000 |
| Rate and term | Each CDFI sets its own terms | Generally 8% to 13%, with a maximum term of seven years |
| Use limits | Ask the CDFI what it funds | Proceeds cannot pay existing debts or buy real estate |
Source: SBA microloans. Read how to get an SBA microloan for the step-by-step path.
Here is a made-up example, not a quote. Juniper Row Books, a fictional business, needs about $13,000 for shelves and stock. The owner checks the SBA cap of up to $50,000 first. She then compares the 8% to 13% rate range SBA describes. She also checks the maximum term of seven years. Those three checks tell her whether a microloan fits.
What to bring
Bring the file a lender needs to judge repayment. Ask your CDFI for its exact list first.
- A short business plan
- A use-of-funds explanation
- Recent business bank statements
- Personal and business tax returns
- A personal financial statement
- Any collateral information you have
- Business licenses
See what documents do I need for a business loan for the full checklist.
How to apply, step by step
- Find two or three CDFIs that serve your area.
- Ask each one what it funds and what it needs.
- Gather the documents on its list.
- Apply, and expect questions about your plan and cash flow.
- Compare any offer by APR, total repaid, and payment schedule.
Read business loan interest rates before you sign any offer.
If a CDFI says no
Ask why, and ask what would change the answer. Then look at small business grants. Compare the full list in best business funding options compared. Read business loan denied: what to do next for the next steps.
Do not take a cold call that follows a denial. Read how to stop MCA broker calls. You can also apply direct, as business funding without a broker explains.
Every other way to fund your business
CDFIs are one path, not the whole map. Newer owners can also read startup business funding.
See every way to fund your business
Sources
CDFI facts checked on CDFIFund.gov and microloan figures checked on SBA.gov on October 16, 2026.