Community Development Finance Institutions (CDFI)
A Community Development Finance Institution can be thought of as a lender who has a goal to source fair, responsible financing to communities that perhaps mainstream financing leaves untouched. These institutions are typically non-profit with a relationship-based approach to lending.
How do Community Development Finance Institutions work?
When you apply to a CDFI, the relevant relationship manager will help you through an application which will include information about your business like annual accounts and business plan. Social impacts of this loan will also be considered.
What are the benefits of CDFIs?
- They allow for financial inclusion and create equal opportunities
- They can lend to businesses that may find it harder to access finance
- You can retain complete control
Paul Goodman, our managing director, commented:
“Community Development Finance Institutions [CDFI’s] are a great addition to our extensive panel of commercial finance lenders. CDFI’s plug the gap in commercially available finance where applicants do not meet the eligibility of more mainstream funders. Our team have had a number of recent success stories with these types of funders and are keen to support many more regionally based SMEs across the UK.”
First Enterprise is a valued member of our lending panel who have a lot of experience as a CDFI their CEO, Daniel Carrico, commented:
‘As a CDFI we focus on funding businesses that have been let down by the banking sector. We work with each customer to understand their business and apply real human judgement to our lending decisions. Being rooted in the community allows us to engage with many under-serviced and finally excluded businesses, which is core to our mission. Goodman Corporate plays an instrumental role by helping us build stronger and more inclusive local economies and we value this relationship deeply.’