CDFIs are critical lender and investors in low-wealth communities and low-resourced communities in South Carolina. CDFIs are vital lenders for affordable housing, small businesses, and community facilities. We strongly support the protection of the CDFI Fund.
CDFIs make banking accessible for entrepreneurs and small businesses that often lack the institutional knowledge and networks to feel confident in the lending space. CDFIs are a critical tool that helps diversify our economy.
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.