What is a CDFI?
A Community Development Financial Institution (CDFI) is a specialized financial institution certified by the U.S. Department of the Treasury that serves economically distressed communities.
Why CDFIs exist
Traditional banks often decline to lend in low-income neighborhoods, to small businesses without collateral, or to individuals with limited credit history. CDFIs fill this gap — they specialize in exactly these borrowers and communities, offering fair rates and flexible terms that mainstream lenders won't.
The Treasury certification
To become CDFI-certified, an institution must demonstrate to the U.S. Treasury's CDFI Fund that it:
- Has a primary mission of promoting community development
- Serves a Target Market — a low-income or underserved population
- Provides development services alongside financing
- Maintains accountability to its target market
Types of CDFIs
Nonprofits offering small-dollar loans to individuals, small businesses, and housing projects. Best for personal loans, microloans, and credit building.
Member-owned cooperatives focused on low- and moderate-income communities. Offer checking, savings, auto loans, and mortgages at fair rates.
FDIC-insured banks whose primary mission is community development lending. Full-service banking with a focus on underserved areas.
Parent companies owning CDFI-certified banks. Often operate multiple community-focused banking institutions across regions.
CDFI-certified investment funds providing equity capital to small businesses and entrepreneurs in underserved communities. Not traditional lenders — they invest rather than loan.
Native CDFIs
Native CDFIs are certified Community Development Financial Institutions whose mission is serving Native American, Alaska Native, and Native Hawaiian communities. The Treasury's Native American CDFI Assistance (NACA) program funds them.
Browse Native CDFIsWhat loans do they offer?
CDFIs offer a range of products, including:
- Personal loans for emergencies or debt consolidation
- Small business loans and microloans (often under $50,000)
- Home purchase and improvement loans
- Auto loans
- Credit builder loans for those with no credit history
Rates vary, but CDFIs are required to offer fair terms — never predatory. Many also provide free financial counseling.
How to apply
Find a CDFI near you, visit their website, and apply directly. Most have an online application or a local office you can walk into. Many loan funds serve specific populations (veterans, women-owned businesses, Native communities) — look for a match.
Find a lender near youCDFIs by the numbers
According to the U.S. Treasury's most recent annual reports (2023 ACR Snapshot and FY2022 Transaction Level Report):
Source: CDFI Fund Data Releases. Per-institution loan data is intentionally masked by Treasury to protect CDFI confidentiality.
Data sourced from the CDFI Fund, U.S. Department of the Treasury. Updated March 2025. Not affiliated with the CDFI Fund or any government agency.