CDFI Fund Opens First Funding Round for Small Dollar Loan Program
Mary Scott Balys
The CDFI Fund has opened the first funding round for the Small Dollar Loan Program (SDL Program).
SDL Program funding is intended to expand consumer access to financial institutions by providing alternatives to high cost small dollar lending. The program is also intended to help unbanked and underbanked populations build credit, access affordable capital, and allow greater access into the mainstream financial system. For this program, small dollar loans are unsecured loans of up to $2,500.
Through the SDL Program, the CDFI Fund will provide:
- Grants for loan loss reserves (LLRs): The awards will enable a certified community development financial institution (CDFI) to establish a loan loss reserve fund in order to defray the costs of establishing or maintaining a small dollar loan program.
- Grants for technical assistance (TA): The awards will support technology, staff support, and other eligible activities to enable a certified CDFI to establish and maintain a small dollar loan program.
Applicants can choose to submit an application for a LLR grant, for a TA grant, or for a combination award covering both uses. The CDFI Fund expects to award up to $13.5 million in this round of funding. The application deadline is June 29, 2021.
Visit the SDL Program page to learn more and apply.