What Do Black Business Owners Need to Know About CDFIs as a Funding Option with Amber Banks

In this episode, Melinda Emerson is joined by Amber Banks to explore the critical role of Community Development Financial Institutions (CDFIs) in business financing. They delve into understanding CDFIs, tackling credit score issues, and the challenges of borrowing. Amber discusses how CDFIs advocate for small businesses and assist with urgent cash flow needs. The conversation touches on the quality of CDFI services, their impact, and the prevalence of Black-led CDFIs. They examine CDFI funding sources, technical assistance, and preparation for approaching a CDFI. The episode also addresses combating predatory lending and offers insights into navigating lending for business acquisitions and franchises.

Amber Banks, President & CEO of the African American Alliance of CDFI CEOs.Amber leads the nation’s only organization dedicated to supporting Black-led Community Development Financial Institutions (CDFIs)—trusted lenders that help Black entrepreneurs access affordable capital, coaching, and financial tools when traditional banking falls short. Through The Alliance, Amber works closely with Black CDFI leaders who are on the front lines of advancing business ownership and homeownership in underserved communities. To find a CDFI in your area, visit https://www.aaacdfi.org

(0:00) Introduction and opening remarks with guest Amber Banks (3:32) Understanding CDFIs and their role in business financing (6:38) Tackling credit score issues and the credit scoring system (12:14) Borrowing challenges and CDFI advocacy for small businesses (16:09) How CDFIs assist with urgent cash flow needs (18:41) Assessing CDFI service quality and their impact (20:21) Black-led CDFIs: Numbers and distribution (21:40) CDFI funding sources and technical assistance (24:45) Preparing to approach a CDFI (26:13) Combating predatory lending practices (33:12) Forecasting the best business advice for 2026 (34:38) Navigating lending for business acquisitions and franchises (36:05) How to find a local CDFI (36:27) Sponsor: SmallBizLady University Sales Accelerator Boot Camp (36:55) Closing remarks and outro