Free Funding
CDFI Grants & Free Funding
Most CDFIs are best known for loans, but many also provide grants, credit-building programs, and free financial coaching. Here's where to look.
What CDFIs offer beyond loans
- Direct grants — usually for small businesses, nonprofits, or community projects in underserved areas
- Forgivable loans — loans that convert to grants if you meet certain conditions (like creating jobs or staying in an underserved area)
- Free financial coaching — one-on-one help with budgeting, credit, and loan applications
- Credit-builder programs — small loans specifically designed to build a credit history at no profit to the lender
- Down payment assistance — for first-time home buyers
- Matched savings (IDA programs) — for every dollar you save, the CDFI matches with $1–$8 toward a goal like education, home purchase, or business
How to find a CDFI grant
- Find CDFIs near you — start with Loan Funds and Bank Holding Companies, which are most likely to offer grants
- Visit each CDFI's website and look for “programs,” “services,” or “impact” sections
- Call them directly. Many CDFI grant programs are not heavily advertised online — staff will tell you what's available
- Ask about matched savings (IDA) programs by name — these are common but unfamiliar to most borrowers
Federal grant programs to know
These federal programs fund CDFIs directly, and the CDFIs then distribute money or services to qualifying individuals and small businesses:
- Native American CDFI Assistance (NACA) (opens in new tab) — funds Native CDFIs serving tribal communities
- CDFI Bond Guarantee Program (opens in new tab) — long-term, low-cost capital for community development projects
- Bank Enterprise Award (BEA) (opens in new tab) — rewards banks that increase lending in distressed communities
- Capital Magnet Fund (opens in new tab) — funds affordable housing and economic development
- Small Dollar Loan Program (opens in new tab) — funds CDFIs to make small consumer loans as alternatives to payday lenders
- CDFI Program (FA & TA) (opens in new tab) — Financial Assistance and Technical Assistance grants for certified CDFIs
Watch out for grant scams
Real grants never charge fees to apply. If anyone asks you to pay a “processing fee” to receive a grant, it's a scam. CDFIs are nonprofits — they will never ask for money upfront.