Community Development Financial Institutions (CDFIs) are mission-driven lenders certified by the U.S. Treasury's CDFI Fund. Texas businesses in underserved communities may access CDFI lending with more flexible terms, lower barriers to entry, and technical assistance that traditional banks typically do not provide.
What Is a CDFI?
CDFIs are private financial institutions dedicated to delivering responsible, affordable lending to underserved communities. The U.S. Treasury certifies CDFIs and provides capital through the CDFI Fund. Texas has one of the largest CDFI networks in the country, with institutions serving urban, rural, and border communities statewide.
Major Texas CDFIs
- LiftFund (San Antonio): One of the largest CDFIs in the U.S., providing loans from $500 to $5 million across Texas. SBA-approved microlender and Community Advantage lender with extensive technical assistance programs.
- PeopleFund (Austin): Provides microloans and small business loans across Central Texas with free business consulting and coaching programs.
- ACCION Texas: Serves Texas and Louisiana with microloans and small business lending focused on underserved entrepreneurs.
- Houston Business Development Corp: Provides SBA-backed lending and business development services in the Houston area.
- BCL of Texas (Austin): Focuses on commercial real estate lending, New Markets Tax Credits, and community development projects.
Advantages of CDFI Lending
CDFIs typically offer more flexible underwriting than traditional banks, accept lower credit scores and limited collateral, provide free technical assistance and business coaching, serve as SBA microlenders and Community Advantage lenders, and focus on community impact alongside financial returns.
How to Find a CDFI Near You
The CDFI Fund maintains a searchable directory at cdfifund.gov. Your local SBDC can also connect you with CDFI lenders serving your area. Many CDFIs accept applications online and provide initial consultations at no cost.
Find More Programs for Your Business
The CDFI Fund Programs for Texas Businesses is just one of many programs that Texas businesses may be eligible for. Federal, state, and local governments offer a range of grants, tax credits, loans, and incentives.
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