Is a CDFI Right for You?
And are you right for it? Ask yourself these questions to see if you and a CDFI loan are a good fit:
- "How much money do I need?"
Most CDFIs fund businesses that need between $150,000 and $500,000, but some offer microloans of $35,000 or less and a few will lend more than $1 million.
- "Is my business in a low-income area?"
CDFIs usually fund businesses in economically depressed or rural areas where good jobs are scarce.
- "Am I ready for hard-core coaching?"
CDFIs look for managers who are willing to critically evaluate themselves and accept copious amounts of advice.
- "Do I meet the requirements?"
Though most CDFIs loan to borrowers with poor credit, they still require businesses to have accounting systems in place, and may require proof that you serve a social mission as well.