Small businesses power South Carolina’s local economies. They create jobs, support families, and give each community its own identity. As lending standards have tightened in recent years, many entrepreneurs are finding it harder to access the resources they need to start or grow a business. 

This is driving growing demand for mission-driven capital—financing paired with guidance, support, and long-term partnership through Community Development Financial Institutions (CDFIs) and nonprofit lenders. These organizations serve as mission-driven lenders, expanding access to capital for entrepreneurs who may not qualify for conventional financing. 

Complementing Traditional Lending to Support More Entrepreneurs 

According to the Federal Reserve’s Senior Loan Officer Opinion Survey (SLOOS), lending standards tightened significantly in 2023—reaching levels seen primarily during major economic disruptions. Although some easing has occurred since then, standards remain tighter than long-term averages. 

For early-stage companies, startups, and entrepreneurs without long operating histories or substantial collateral, this makes qualifying for traditional financing more challenging—even when the underlying business is viable. Mission-driven capital doesn’t replace traditional lending—it complements it by meeting entrepreneurs where standard underwriting naturally has limitations. 

Where CDFIs Step In — and Where We Lead 

CDFIs like CLIMB Fund exist to bridge this gap. As mission-driven financial institutions, we expand access to affordable capital and business support for entrepreneurs who may not qualify for conventional financing.

Learn more through the U.S. Treasury CDFI Fund overview 

How We Put This Mission Into Practice 

At CLIMB Fund, this commitment shows up in our daily work. Our most recent investment materials confirm that we now provide more than 17,000 hours of technical assistance each year—including one-on-one coaching, tailored advising, and specialized industry support. 

Mission-Driven Capital Creates Measurable Impact 

CLIMB Fund’s publicly reported investment data shows: 

• 500+ businesses supported 
• $47.5M+ in loans deployed 
• 8,000+ jobs created

See more at the CLIMB Fund Investment Opportunities page 

Working With Bank Partners to Expand Reach Across Communities 

Research shows rural communities often face reduced branch access. See: FDIC Community Banking Research 

CDFIs complement—not replace—traditional lenders by serving borrowers, industries, and communities that may not fit conventional underwriting criteria. Flexible loan structures and hands-on guidance help ensure entrepreneurs in rural and underserved areas still have a pathway to funding. 

South Carolina’s Entrepreneurial Momentum 

According to the SBA’s official state profile: South Carolina Small Business Profile 

• 507,620 small businesses statewide 
• 822,949 employees supported 

Entrepreneurial activity has increased significantly. Nationwide, likely employer business applications in 2023 were 37% higher than in 2019. Research from the Economic Innovation Group (EIG) shows South Carolina is part of a Southeast region where employer business applications have risen by 50%+ since 2019. 

South Carolina now averages 7,000–9,000 new business applications per month (U.S. Census Bureau). See: Business Formation Statistics (BFS) 

This combination of a large existing small-business base and strong new formation highlights why access to capital—and to mission-driven lenders—is so essential. 

The Bigger Picture: CDFIs at the National Level 

CDFIs don’t operate in isolation—together, they make up a national financial infrastructure intentionally designed to reach entrepreneurs and communities that traditional lenders often cannot. Their impact is significant not only at the local level, but across the United States economy.

Since 1994, the U.S. Treasury’s CDFI Fund has served as the backbone of this national ecosystem by directing capital into mission-driven lending. According to the Fund’s publicly reported cumulative program data, it has:

• Awarded more than $8 billion in Financial and Technical Assistance grants
• Allocated $81 billion in New Markets Tax Credit (NMTC) authority
• Guaranteed nearly $3 billion in long-term debt through the CDFI Bond Guarantee Program

These investments help finance small businesses, affordable housing, community health centers, childcare facilities, grocery stores, and other projects in communities where access to capital has historically been limited.

What makes this national network powerful is its model: every federal dollar is leveraged many times over by CDFIs like CLIMB Fund, banks, foundations, and local partners. This means the CDFI industry doesn’t just fill financing gaps—it multiplies the amount of capital available in communities that need it most, driving job creation, commercial revitalization, and long-term economic resilience.

For South Carolina specifically, being part of this national ecosystem ensures that local entrepreneurs benefit from a much larger pool of resources, tools, and capital strategies. As federal CDFI funding continues to grow, mission-driven lenders in our state are positioned to deploy more capital, support more businesses, and strengthen more communities than ever before.

 
Learn more: CDFI Fund Awards Overview 

Closing Thought 

At CLIMB Fund, we see firsthand how mission-driven capital transforms businesses, neighborhoods, and futures. When we invest in local entrepreneurs, we invest in jobs, community pride, and long-term economic resilience. 
 
Mission-driven funding isn’t an alternative path—it’s a driving force behind South Carolina’s economic future.