CDFI Innovation & Transformation Grants

Introduction

Thank you for your interest in applying to Unity's CDFI Innovation & Transformation Grants (CIT Grants).


In 2026, Unity celebrates 25 years of providing mission-aligned lending to CDFI borrowers and we have seen exceptional innovation in the sector.

The CIT Grants aims to support the continued innovation in the CDFI sector to deliver positive impact in the hardest to reach communities in the UK.

Unity aims to deploy over £250,000 by 2030 to support innovation, learning and growth through the CIT Grants Fund. To learn more and to support your application, please see the overview here:

Unity-Trust-Bank-CDFI-Grant-Application-Guide.pdf

CIT Grant categories
CIT Grants are provided through two pathways: 
  • Innovation for established impact lenders: CDFIs are leaders in financial inclusion for organisations and individuals who struggle to access affrodable mainstream finance. Established CDFI lenders  have provided SMEs and not-for-profits or personal lending for over five years. The CIT grants for established impact lenders supports CDFIs to explore innovative solutions in their funding models, operations or technology usage to maximise the impact they can have through lending.
CIT Grants to established impact lenders will be £40,000 in 2026
  • High impact micro-enterprise lending: CDFIs are pioneering ways to provide fair, inclusive and patient finance to micro-enterprises to build livelihoods and businesses. The micro-lender CIT pathway aims to support this growing sector with grants to support investment readiness, test solutions to maximise impact and strengthen micro-lenders to deliver lending <£25,000 to micro-enterprises. 
CIT Grants to micro-enterprise lenders will be £20,000 in 2026. 

Details of each pathway are provided on the following page. 
CIT Grant eligibility
Unity recognises that CDFIs come in different structures and frameworks to serve their customer needs. Therefore, the apply for a CIT Grant, the CDFI must qualify on one of the following requirements: 

Additional to the core requirements above to be a registered CDFI or provider of financial inclusion solutions, the following eligibility requirements must be met: 
  • For micro-enterprise lenders: A registered organisation with at least one year trading with accounts submission.
  • For established impact lenders: A registered organisation with over five years trading through lending to organisations.
  • Proof of lending to the target customer group in the previous and current trading year will be required.
  • The previous years' income must be at £40,000 for the micro-lender CIT grant and £80,000 for the SME CIT grant lenders.
  • Grants will be subject to successful Know Your Customer and Anti-Money Laundering checks.
Eligible use of CIT Grants - Established impact lenders
Unity aims for our grants to be as flexible as possible for the successful applicants while maximising the benefit to the CDFI sector. CIT grants for established impact lenders should focus on one of the following categories for testing innovation in personal or SME lending to deliver impact with customers: 

  • Novel contribution to blended finance: The grant can be used within a blended finance offering to support patient lending on a pilot basis or within an established product. Priority will be given to blended investments that test new ways for maximising the benefit to borrower and community. 

  • Innovation in lending process management - The grant may be used to contribute to the cost of testing or integrating new solutions or enhancement to existing tools to improve the lending process for CDFI customers. 
  • Innovation in credit and/or impact assessment  - The grant may be used to improve the efficacy of credit and impact analysis for the CDFI. Particular interest is given to the responsible integration of AI (Artificial Intelligence) to improve the efficiency, inclusion and insights of the decision making process. 
  • Use of technology for market research - The grant may be used to improve market insights and pipeline generation for the CDFI. Preference will be given for scaleable or repeatable solutions that can support accessing borrowers delivering positive impact in their communities. 
  • Transformation of 'back office' functions - The grant may be used to enhance the back office functions of CDFIs to support the overall mission of the organisation. 

The grant of £40,000 can be used across these four categories with the following considerations: 

  • Sharing lessons: The successful CIT grantee will be requested to provide a learning presentation or report to support other CDFIs to learn from high level / non-competitive insights from the CIT grant. 
  • Grant reporting and collaboration: Grant reporting and collaboration will be requested in a grant agreement which will be proportionate and supportive to the successful CIT grantee. The aim of 'reporting' will be to support the development of learning and will be low reporting and high collaboration on a quarterly basis. 
  • Access to wider Unity support: Unity Trust Bank has similar functions to CDFIs. Through the grant reporting and collaboration Unity will aim to provide volunteer, mentor or other non-financial support to maximise the benefit of the CIT grant. 
Eligible use of CIT Grants - Micro-enterprise lenders
Unity aims for our grants to be as flexible as possible for the successful applicants of micro-enterprise lending CDFIs. As the sector grows it's impact, CIT grants should focus on one of the following categories with a key aim to grow the sector and demonstrate progress to investment readiness: 

  • Grant for high impact lending: Grants can be used to provide micro-enterprise loans to provide proof of concept on the commercial viability of micro-enterprise lending through balance sheet growth. 
  • Blended finance to strengthen evidence: The grant can be used within a blended finance offering to support patient lending for micro loans. Priority will be given to blended investments that can clearly demonstrate how the use of blend can support greater access to finance at the micro-loan stage.

  • Sustainable improvement or innovation in lending process management - The grant may be used to contribute to enhancing the tools and systems used to make micro-lending an inclusive, fair and efficient system for potential borrowers. 
  • Innovation in credit and/or impact assessment  - The grant may be used to improve the efficacy of credit and impact analysis for the micro-ledner. Particular interest is given to the responsible integration of AI (Artificial Intelligence) to improve outcomes for improved equity of access to micro-lending credit. 
  • Use of technology for market research - The grant may be used to improve market insights and pipeline generation for the CDFI. Preference will be given for scaleable or repeatable solutions that can support improved access to finance for marginalised groups.
  • Strengthening and transformation of 'back office' functions - The grant may be used to enhance the back office functions of micro-lenders to support the mission of the organisation. 

The grant of £20,000 can be used across these four categories with the following considerations: 

  • Sharing lessons: The successful CIT grantee will be requested to provide a learning presentation or report to support other CDFIs to learn from high level / non-competitive insights from the CIT grant. 
  • Grant reporting and collaboration: Grant reporting and collaboration will be requested in a grant agreement which will be proportionate and supportive to the successful CIT grantee. The aim of 'reporting' will be to support the development of learning and will be low reporting and high collaboration on a quarterly basis. 
  • Access to wider Unity support: Unity Trust Bank has similar functions to CDFIs. Through the grant reporting and collaboration Unity will aim to provide volunteer, mentor or other non-financial support to maximise the benefit of the CIT grant. 

If you would like to submit an application to the CDFI Innovation & Transformation Grants programme, please click next to begin your application. 

Confirming eligibility








You have selected 'No' to one of the eligibility criteria for the CIT grants requirements. If you do not meet all eligibilities, your application will not be consider. If you have selected 'No' we recommend you do not proceed with your application. Thank you

You have selected 'Not Sure' to one of the eligibility criteria for the CIT grant requirements. If you do not meet all eligibilities, your application will not be consider. Therefore, we recommend you review whether you meet our eligibility requirements before proceed. 

Overview

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Please note: the contact name, email address and telephone number will be our primary means of contact to discuss your application.

About your organisation











CIT Grant proposal

      What would you do with the CIT Grant?






Learning and impact management of the CIT Grant


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About your impact on People and Planet


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Thank you for completing your CDFI Innovation & Transformation Grant application. 

The successful CIT Grant winner for the micro-enterprise lender and the established impact lenders will be announced at the Responsible Finance members day 23rd November to 25th November. Therefore, we aim to inform the successful applicants by the 2nd October to enable finalisation of the grant. 

To finalise your submission, please press 'Submit' below. 

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