Social Enterprise Loans

FAQs about Social Enterprise Lending CDFIs

What is a social enterprise lending CDFI?

A social enterprise lending CDFI is a responsible lender that provides tailored financial support to social enterprises. These lenders focus on helping organisations that deliver positive social or environmental impacts alongside financial returns.

Who can apply for a loan from a social enterprise CDFI?

Social enterprises of all sizes and sectors can apply, especially those that:

  • Struggle to access finance from mainstream lenders.
  • Have a mission to create social, environmental, or community impact.

What makes social enterprise CDFIs different from other lenders?

Social enterprise CDFIs:

  • Consider the “triple bottom line,” evaluating social, environmental, and financial outcomes.
  • Provide flexible, tailored loan and grant products.
  • Understand the unique needs and business models of social enterprises.

What types of funding do social enterprise CDFIs offer?

They offer a mix of:

  • Loans with fair and affordable terms.
  • Grants to support specific projects or initiatives.
  • Customised financial solutions to meet the unique needs of social enterprises.

How do social enterprise CDFIs decide on loans?

CDFIs use a holistic approach, considering:

  • The positive social and environmental impact of the enterprise.
  • The viability and sustainability of the business model.
  • The enterprise’s financial and operational history.

What are the benefits of borrowing from a social enterprise CDFI?

By working with a social enterprise CDFI, you can:

  • Access funding even if mainstream lenders have declined your application.
  • Receive flexible financing tailored to your needs.
  • Partner with a lender that shares your commitment to creating a positive impact.

Do social enterprise CDFIs compete with mainstream lenders?

No, social enterprise CDFIs complement mainstream lenders. They fill a gap by providing finance to enterprises that traditional banks or Fintech lenders may not serve.

How can I find a social enterprise CDFI?

Use the tool below to find the right social enterprise lender for your needs.

Read some success stories of other Social Enterprises who have been helped by a Responsible Finance member.