Later this spring, the CDFI Fund will be accepting applications for a new grant program, the Small Dollar Loan Program. The Small Dollar Loan Program was created to encourage Certified CDFIs to establish and maintain small dollar loan programs and provide alternatives to high cost small dollar loans. For this program, small dollar loans are unsecured loans of up to $2,500. The grants may be used for two eligible activities, loan loss reserves and technical assistance activities.
Through the Small Dollar Loan Program, Certified CDFIs will use award funds to help unbanked and underbanked populations build credit, access affordable capital, and allow greater access into the mainstream financial system. Certified CDFIs may use these funds individually, or through a partnership between a Certified CDFI and any Federally Insured Depository Institution with a primary mission to serve targeted Investment Areas, or through a partnership between two or more Certified CDFIs. The CDFI Fund currently anticipates that up to $13.5 million will be available for the FY 2021 application round of the Small Dollar Loan Program.
More information about the Small Dollar Loan Program, including details about the application and the requirements to apply, will be made available soon. Grant Management Associates has staff that specialize in CDFI applications. Please contact us today for more info.