Pros
- Targeted products and services: Many MDIs are organized to serve specific underserved groups, including minorities (such as Black or Hispanic business owners). If you can find an MDI that gears its offerings toward you, it may make it easier to get the help and financing you need.
- Educational services: Like CDFIs, some MDIs also help their customers learn how to manage their money.
Cons
- Not as accessible to everyone: These institutions focus on low-income areas and are usually concentrated in metropolitan areas, so rural business areas may have trouble accessing them.
- Lack of resources: MDIs don’t have the financing of larger traditional banks. MDIs may not be able to offer as many loans to borrowers or may lack the ability to offer online loans.
