Craft3 is a nonprofit lender, not a bank — which means different rules, different priorities, and often, different possibilities for your business. Here's what that actually means if you're considering a loan.
What can Craft3 do that a bank typically can't?
Banks operate under strict regulatory rules around risk. As a nonprofit lender, Craft3 can responsibly and intentionally take on more risk and uncertainty, and often be more flexible about how a loan is structured. That means Craft3 can often say yes to a deal a bank has to turn down — and can work with a business owner to shape financing that fits their situation, not just a standard template.
What sorts of deals can Craft3 often do that banks can't?
A few examples:
• Credit challenges. Craft3 has approved loans for entrepreneurs with credit scores under 600, when the business case is strong and there's a good explanation for past issues. Issues can include medical debt or a past bankruptcy.
• Real estate purchases. Craft3 can finance commercial real estate at a higher loan-to-value ratio than most banks allow and lower occupancy standards.
• Limited or no collateral. Craft3 can consider loans for business owners who don't have much equity to put up.
• Startups. Craft3 can lend to new businesses without access to friends-and-family capital, if there's a clear path to profitability. We are, however, generally not able to finance startup nonprofits.
• Incomplete financial records. If the business itself is strong, Craft3 can work with owners whose bookkeeping isn't perfect.
• ITIN borrowers. Craft3 can lend to business owners who aren't U.S. citizens, using an ITIN instead of a Social Security number.
• Bridge financing for nonprofits. Craft3 can bridge grant awards or capital campaigns for established nonprofits.
How does Craft3 fund its loans if it doesn't take deposits?
Unlike a bank, Craft3 doesn't hold customer deposits. Instead, it raises capital from investors, donors, foundations, and government grants, then lends that money back out to businesses and communities. This is standard for a CDFI (community development financial institution).
What does it mean that Craft3 is a CDFI?
CDFI stands for Community Development Financial Institution — a type of lender certified by the U.S. Treasury with a mission to serve communities that mainstream banks often don't reach. Craft3 is the largest CDFI loan fund based in Oregon and Washington, and has made almost $800 million in commercial loans and investments since 1994.
What does it mean that Craft3 is a mission-driven lender?
Craft3 uses lending as a tool for social good — to build economic opportunity in rural and Tribal communities, close racial wealth gaps, and support climate resilience. Since 1994, this has meant investing in people and places that don't always get access to traditional financing, including nearly 1,250 loans to entrepreneurs of color and indigenous-, woman-, immigrant-, and veteran-owned businesses.
How does Craft3 work with banks?
Craft3 doesn’t compete with banks, but instead partners with them. When a banker has a loan they want to make but can't, they can refer it to Craft3. The bank keeps the deposit relationship and stays in the loop, and if the borrower later qualifies for traditional financing, Craft3 refers them back to the bank. The majority of Craft3 borrowers do not qualify for bank financing and if we get an inquiry from a businessowner who likely would qualify, we’ll refer them to a bank.
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