CDFIs support individuals, small businesses, community facilities in rural, metro, and Native communities in every state in the nation. CDFIs have enjoyed widespread bipartisan support for decades. They leverage federal government dollars with bank and other private sector support. They are a smart and efficient market solution the federal government should be proud to support.
CDFIs help community-focused organizations access capital for traditionally underserved communities.
Small businesses are the backbone of Main Streets across America, creating jobs, driving economic growth, and keeping communities strong. Yet, many small business owners-especially in rural areas and underserved markets- struggle to access the financing they need to start and grow. Traditional banks often overlook smaller-dollar loans, but CDFIs step in to fill that gap, providing the sub-$100K loans that small businesses rely on for working capital, equipment, and expansion. At LoanWell, we work with CDFIs to help them originate and deploy more small business loans efficiently, ensuring that capital reaches the local entrepreneurs who keep storefronts open, job opportunities growing, and communities thriving. More than 90% of CDFI small business loans are under $100K, making them one of the few reliable sources of funding for businesses that are too small for traditional banks but too big to rely on personal savings alone. The CDFI Fund is critical to making this lending possible, ensuring that CDFIs have the resources to meet the demand for responsible, small-dollar financing.