Aruch HaShulchan, The Laws of Tzedakah, 249:14-15

14. Acts of loving kindness are greater than tzedakah, because acts of loving kindness establish the situation in which one will not need tzedakah. Know that we said in Shabbat (63) that the lender is greater than one who does tzedakah, and a business loan is better than anything. The reason for this is that a poor person is not shamed by a situation in which they take money as compensation in an equal business partnership, etc. This is because whoever merely lends money to their fellow without return (without the lender making a profit), the borrower is shamed, because the borrower benefits from the lender in a situation in which the lender could not benefit at all. However, a business loan does not bring shame at all since the two of them are benefiting - until here are its words...Rambam thought there were eight levels of tzedakah, and they are as follows: 15. The highest level to which there is nothing greater is one who takes the hand of a poor Israelite and gives them a gift or makes them an apprentice or a partner or finds them work in order to strengthen their hand so they were never need again. Concerning this, it is said, “If your brother is poor, and his means falls upon you, then you shall strengthen him...”. In this time of our in many cities, there are societies which give poor Jewish youth to employers, and this is the very greatest thing... [Translation by Rabbi Bruce Elder. Edited for gender neutrality]