For CDFIs looking to enter the growing field of Disability Finance (DF), assistive technology (AT) lending offers a compelling place to start, both for its life-changing impact on borrowers and for its relatively low financial risk to lenders.
AT includes a wide range of devices and services—such as hearing aids, wheelchairs, adapted vehicles, home modifications, and AI-powered smart glasses—that help people with disabilities (PWD) live independently, work, and fully participate in their communities. But for many PWD, access to AT remains out of reach. Insurance rarely covers the full cost of equipment, and public benefits often come with narrow eligibility rules and rigid timelines that limit the capacity of PWD to take on debt. That leaves individuals to piece together funding through credit cards, retirement withdrawals, or personal loans—if they can secure them at all.
“This is a market that’s underserved and ready for thoughtful investment,” says Will Hall, CEO of Pennsylvania Assistive Technology Foundation (PATF), one of the longest-standing CDFIs focused exclusively on AT lending. “If you’re a CDFI with consumer lending capabilities, this is a smart entry point into Disability Finance.”
A Model That Works
PATF’s success rests on a lending model designed with the realities of disability in mind. The organization offers two main types of loans: no-interest, no-fee direct loans of up to $7,000 for a maximum term of 48 months; and low-interest loans of up to $60,000, underwritten by bank partners and guaranteed by PATF. For the latter, PATF provides an upfront interest rate buy-down, ensuring the borrower pays no more than 3.75% while avoiding additional fees to the borrower.
The structure is designed to keep borrowing simple, affordable, and accessible. But it’s also smart lending. “We do manual underwriting,” says Hall. “Every file is reviewed by a real person who can see the full picture of the borrower. That means we’re able to approve loans that make sense, even if someone’s credit score doesn’t tell the whole story.”
Despite lending to individuals often overlooked by traditional financial institutions, including many on fixed incomes or with non-traditional credit histories, PATF maintains a default rate of just 4%.
The Power of People and Process
For CDFIs interested in replicating this model, Hall’s first piece of advice is to think carefully about staffing. “It may seem counterintuitive to put your most thorough, tenacious team members on your smaller-dollar loans,” he says. “But this is a high-volume program, and the details matter. If you’re not careful, you risk skipping over folks you could’ve helped, or making loans that don’t set people up for success.”
That people-first approach extends to borrower support as well. PATF’s underwriters provide light-touch credit coaching and refer applicants to trusted counseling partners when deeper help is needed. The organization also offers a free financial education curriculum, Cents and Sensibility, tailored for people with disabilities.
If a borrower runs into trouble? “We offer payment holidays, deferments, even emergency rescue payments in some cases,” Hall explains. “We’re not trying to create harm, we’re trying to open doors.”
High Impact, Low Risk
CDFIs are often drawn to lending that can show tangible, community-level results. AT lending delivers that in spades.
“The impact is obvious,” says Hall. “If you’re a CDFI focused on housing, employment, or entrepreneurship—those goals may not be achievable for someone without the right assistive tech. AT is the foundational step.”
Indeed, data from another AT specialist CDFI, Northwest Access Fund’s 2024 Annual Client Survey backs this up: 98% of borrowers said their AT improved their quality of life, 86% said it improved their safety, and 85% said it helped them maintain social connections. These are outcomes that matter, and they’re eminently measurable.
And for lenders? “No single one of these loans is going to break your portfolio,” says Hall. “While you still want to underwrite responsibly, you can afford to be thoughtful and flexible. That’s what makes this such a smart opportunity.”
Getting Started
According to a recent market assessment conducted by National Disability Finance Coalition, there’s strong interest among CDFIs in serving people with disabilities—but limited experience in doing so. AT lending offers a way in.
CDFIs ready to explore the space should consider:
- Partnering with DSOs and state-run AT programs to enhance outreach and borrower support.
- Designing flexible underwriting standards that account for SSI/SSDI income and nontraditional credit histories.
- Investing in staff training on the financial realities of living with a disability, including benefits planning and asset limits.
- Building relationships with certified benefits counselors to reduce the risk of unintentional harm to public assistance eligibility.
Above all, says Hall, “You have to care. You have to want to get it right. If you bring that mindset, there’s no reason you can’t do this work well.”
Ready to Explore Assistive Technology Lending?
Join a growing network of mission-driven lenders expanding financial access for people with disabilities. Visit our membership page to learn more, access trainings, and connect with peer organizations already leading in this space. Or email us at info@disabilityfinance.org.