Supporting CDFIs with a new grant programme
Introducing our CDFI Innovation and Transformation Grants
Supporting innovation, growth and impact across the CDFI sector
Community Development Finance Institutions (CDFIs) play a vital role in providing fair and flexible finance to organisations and entrepreneurs who may struggle to access mainstream funding.
To mark 25 years of working with CDFIs, we’ve launched our CDFI Innovation and Transformation (CIT) Grants Programme.
The programme will provide at least £250,000 in grant funding by 2030, helping CDFIs strengthen their impact, test innovative approaches, improve operations and deepen support for the communities they serve.
2026 grants
A total of £60,000 of grant funding is available in 2026, across two dedicated grant categories.
Micro-Enterprise Lender Grant
Grant value: £20,000
Designed for: established CDFIs providing loans under £25,000 to micro-enterprises focused on investment readiness and generating evidence of growth opportunity for the sector.
Funding can support:
- Investment readiness initiatives
- Growth opportunity research
- Evidence building
- Market insight activities
- Inclusive lending development
- Operational improvements
Established Impact Lender Grant
Grant value: £40,000
Designed for: established CDFIs that have been actively trading and lending to SMEs and not-for-profit organisations for at least five years.
Funding can support:
- Innovation projects
- Service improvements
- Operational transformation
- Capability building
- Impact measurement improvements
- Product development
One grant per category will be provided in 2026, so that Unity can learn how this programme can best support the sector, with a view to expanding this in 2027.
How to apply
Our application window is open 13 September 2026 to 23 October 2026. Applications can be made using our online form, which will take you through a series of questions confirming your eligibility, the use of funds and proposed impact.
We’ve created our CIT Grant Application Guide that explains the grant categories and eligible use of funding. It also covers the assessment criteria and the information applicants should prepare before completing the online application form.
Who can apply?
To be eligible, applicants must:
- Be a UK-based CDFI or responsible finance lender.
- Deliver measurable impact within the UK.
- Be either:
- A member of Responsible Finance, or
- A provider of Community Investment Tax Relief (CITR) qualified lending.
- Demonstrate appropriate governance and financial standing.
- Be actively lending to organisations or individuals.
- Meet Unity’s financial crime, anti-bribery, reputational and compliance requirements.
Additional requirements for Established Impact Lender applicants
Applicants must demonstrate:
- A minimum of five years trading history.
- Active lending to SMEs and not-for-profit organisations throughout that period.
What the grant can be used for
The CIT Grants programme is designed to support activities that strengthen individual organisations while creating learning opportunities for the wider sector. Funding may be used for:
Blended finance innovation
Testing new approaches to patient finance, subsidy models or wraparound support that improve customer outcomes.
Lending process improvements
Enhancing customer journeys, systems and lending workflows through technology and innovation.
Credit and impact assessment
Improving credit decision-making, impact measurement and responsible AI applications.
Market research and growth development
Generating insights that help identify demand, strengthen pipelines and support future growth.
Back office transformation
Improving internal systems, reporting, operational efficiency and organisational capability.
What the grant cannot be used for
- Unrestricted general reserves or activity that cannot be tied to a defined project, transformation or impact purpose.
- Activity that has already been completed or pre-dated matched funding requirements.
- Payments to individuals where the organisation cannot evidence appropriate governance and procurement controls.
- Activities outside the UK or activities where the primary impact is outside the UK.
- Activity that presents an unacceptable risk to Unity such as legal, financial crime, sanctions, anti-bribery or excluded sector risk to Unity.
- Pure onward grant-making to other organisations unless the application can clearly demonstrate direct delivery, governance and impact responsibility.
- Core lending capital, unless the application explicitly makes the case for how the grant functions as catalytic subsidy, first-loss support, product development or transformation funding, and Unity confirms this is acceptable.
How applications will be assessed
Applications will be evaluated against four core criteria.
Innovation
How innovative is the proposal for your organisation?
Strong applications demonstrate activities that go beyond business as usual.
Learning potential
What will you learn and how will that learning benefit the wider sector?
Applications should show how evidence and insights can be shared with others.
Measurable outcomes
How will success be measured?
Applicants should identify clear indicators, targets and methods for tracking progress.
Community impact
Who will benefit and how?
Applications should demonstrate the potential to improve access to finance, customer experience, inclusion and community outcomes.
Eligibility criteria
- Your organisation should be a UK-based CDFI or responsible finance lender delivering impact in the UK and be at least one of the following:
- a member of Responsible Finance
- a registered provider of Community Interest Tax Relief qualified lending
- Your organisation should be able to evidence its legal status, governance, financial standing and lending or support activity.
- Previous year income must satisfy the minimum level for the grant category.
- Your organisation should be actively lending to organisations or individuals who will benefit from the CIT Grants.
- Applicants of the established impact lender grant must be able to evidence that they have been trading and actively lending to SMEs and not-for-profit organisations for at least five years.
- Applicants must satisfy Unity’s financial crime, anti-bribery and corruption, reputational risk and excluded-activity requirements.
Frequently asked questions about our Unity CIT Grants
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No, you don’t need to be a customer with Unity to apply for a CIT grant.
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Yes. Eligible recipients are welcome to apply for both types of grant, though you will only be selected to receive one grant as we aim to support as many good causes as possible. You will need to submit individual forms for each type of grant. Find out more about Unity Impact Grants.
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We will let all applicants know the outcome once the judging process is complete. We are unable to provide individual feedback on unsuccessful applications.
More ways to grow your impact
Explore our Unity Impact Toolkit to understand how you can measure and grow the impact of your organisation, or visit our Impact Hub to explore the full social, economic and environmental impact we deliver.