Head to head
CDFI loan vs SBA microloan
These overlap heavily, and many SBA microloan intermediaries are themselves CDFIs. Both exist to lend where banks will not, at a fraction of what alternative lenders charge.
| CDFI loan | SBA microloan | |
|---|---|---|
| Typical amount | $1,000 to $2 million+ | Up to $50,000 |
| Cost | Typically 5%-12% | Typically 8%-13% |
| Time to funding | 2-8 weeks | 2-6 weeks |
| Term | 1-10 years | Up to 7 years |
| Relative expense | $$ | $$ |
Cost bands are editorial judgements expressed in APR-equivalent terms so products quoting factor rates and discount fees can be compared with products quoting interest. They indicate relative expense, not quotes. Methodology.
CDFI loan
Usually chosen when
- The amount needed exceeds the $50,000 microloan cap
- You want a lender whose mandate covers your specific community or demographic
- The use of funds includes something microloans exclude
SBA microloan
Usually chosen when
- The amount is small and the attached technical assistance is worth having
- There is an active intermediary nearby
Common questions
- How do I find a CDFI near me?
- The U.S. Treasury's CDFI Fund publishes the certified list, searchable by state and institution type. Certification is a formal status you can verify, not a marketing claim.
Other comparisons
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