Budget Your Business: The Unknown Banking Solution for Under-Capitalized Small Business is CDFIs

Описание: E#46: Find Your Bank Series: CDFIs - Scott sits down with Leah Fremouw to unpack a part of the financial ecosystem most small business owners have never heard of: CDFIs, or Community Development Financial Institutions. Leah explains how CDFIs differ from traditional banks, why they exist, and how they’re designed to say “yes” in situations where banks often can’t. From small-dollar loans to layered financing structures, CDFIs focus on access to capital, especially for underserved and under-resourced businesses.

The conversation digs into how CDFIs actually manage risk, why their charge-off rates are often lower than traditional lenders, and how their hands-on approach helps business owners navigate challenges before things go sideways. Leah shares real examples of how CDFIs partner with banks, fill financing gaps, restructure high-interest debt, and improve cash flow in ways that materially change a business’s trajectory.

Scott and Leah also explore what makes a business a good fit for a CDFI relationship, why knowing your financial story matters more than a 40-page business plan, and how capital should support growth—not create stress. They discuss the importance of treating banking as a relationship, not a transaction, and why business owners should be more critical consumers of financial services.

The episode wraps with practical guidance on how to find a CDFI, when to bring one into the conversation, and why trusted financial partners matter long before you actually need the money. For business owners who feel like they’re “just a number” at their bank, this episode opens the door to a different way of thinking about capital, risk, and support.

Podcast Recommendation: Renegade Capital Podcast

Find out more about Leah Fremouw: www.bridgingvirginia.org

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