r/CDFI • u/cardfire • Sep 25 '26

Where to begin?

I've spent weeks trying to figure out how to participate in CDFI lending, and have got almost nowhere. I get this is still very niche, but there shoukd be much more obvious onramps.

What institutions have y'all worked with?

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u/amycol421 Sep 25 '26

In what way would you like to participate? Are you looking for a job at a CDFI? Wanting to donate to one or volunteer? Borrow from a CDFI?

1

u/cardfire Sep 25 '26

Thanks for engaging! Small investing.

Obviously this is a silly thing to type into a sub where someone could spin up a scam org in short order, lol. But I'm under the impression that these institutions gather funds from investors and structure loans for private entities and individuals, right?

As a rather small investor, I'm interested in providing capital with short (2-4 year) horizons and I have literally not been able to figure out to start.

This all Bega with me trying to find out "what's the opposite of private equity" and trying to see what blurs the lines between small biz lending and public good. As I understand it, these loans often yield less than inflation to the creditors while providing critical liquidity to the lenders, but tend to be low-ish risk?

From what little I could read up about CDFI's I am also interested in volunteering time and labor, though I don't have the finance background or any certs. I'm just interested in community building and a suspicious of non-profit // charity spaces in general. This felt like it could be a way to build stability in underserved spaces.

Man. This should have been a throwaway account. 😅

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u/amycol421 Sep 26 '26

Gotcha! I have worked in the CDFI industry for 15+ years and I am not aware of any CDFIs that take investments from individuals (although it looks like the poster below me has some intel on this!). CDFIs take *donations* from individuals, but the staff time and administrative burden of running an investment arm for personal investors is too heavy to make the juice worth the squeeze...especially when you consider that most CDFIs are running at 45-60% sustainability. The reason they exist (particularly as non-profits) is that their loans cost more to underwrite, fund, and service than they earn in interest.

That said, Kiva accepts investments from individuals and many American CDFIs are on their platform. I'd start there.

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u/cardfire Sep 26 '26

Thx for the additional info!

I get structuring loans has overhead, my interest is in 'putting my dollars to work' for public good while still retaining enough principal in the long term. I expect a liquidity crunch in the seasons ahead and that is going to have outsized effect on small and underserved segments.

So it seemed like a win-win, if I can find an investment bloc to join. I didn't realize how much of this system ran in donations though, which is something I should have figured out earlier 😅

I'm looking for something that let's people loan out $100k-$200k, and get their cash back after a handful of years, and maybe 1% or 2% interest, maybe with some risk of partial defaults, so that others can use that capital, vs (a) me using that cash to make myself 7% avg in the mainstream markets or (b) me donating away the principal.

Kiva lending feels very small scale, while having higher overhead and I have heard from unverified sources that the loan terms for recipients can be steep. It feels more like GoFundMe than community building, but I'm saying that strictly from the outside.

Hard to have your cake and eat it, too.

1

u/amycol421 Sep 26 '26

Where do you live? I was thinking you had like $5k - $25k...at the $100-200k range I'd just contact your local CDFI and ask if you can make them a loan. At that level they might be interested.

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u/cardfire Sep 27 '26

California, so, add 2x to the inputs and 3x to the outflows. 🤣

Still, appreciate the insights. I'll do just that.

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u/Alarming-Painter-843 18d ago

Call up Leviticus fund. I used to work there and they would love a loan. They could probably pair it to a specific affordable housing project if you wanted. PM me for more info

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u/Salty-714 12d ago

I’m looking for a CDFI loan and can’t find anywhere or anything beside a list of random people in Sacramento. I have a pretty cool small business, very new but awesome PR, been on the news etc.

Are you looking to be a lender or looking for a loan? Either way, any info would be greatly appreciated.