Small Dollar Loan Program
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
Through the Small Dollar Loan Program, the CDFI Fund provides (1) grants to enable a certified Community Development Financial Institution (CDFI) or any partnership between a certified CDFI and federally insured depository institution, with a primary mission to serve targeted Investment Areas, to establish a loan-loss reserve fund to cover the losses on small dollar loans from a new small dollar program or an existing small dollar loan program; and (2) grants for Technical Assistance to a certified CDFI or any partnership between or among certified CDFIs to establish and maintain small dollar loan programs. Small Dollar Loan Program grants cannot be used to provide direct loans to consumers. This program is intended to provide an alternative to high-cost small dollar loans, as well as help unbanked and underbanked populations build credit, access affordable capital, and allow greater access into the mainstream financial system.
Eligibility
Eligible Applicants
- Nonprofit Organization
Nonprofit Organizations, For Profit Organizations and Other Private Institutions/Organizations in the form of federally insured depository institutions, or federally-insured credit unions that are certified CDFIs.
How to Apply
Award Procedure
The CDFI Fund reviews applications and makes awards based on an established awards review process, set forth in the NOFA and application materials.
The application deadline is approximately 60 days subsequent to the NOFA publication date. Award approval/disapproval determinations may be made within approximately 180 days after the application deadline.
Program details & compliance
Description
The Small Dollar Loan Program provides grants for loan loss reserves and technical assistance to enable CDFIs to establish and maintain small business loan programs. SDL Program grants cannot be used to provide direct loans to consumers. This program is intended to provide an alternative to high-cost small dollar loans, as well as help unbanked and underbanked populations build credit, access affordable capital, and allow greater access into the mainstream financial system.
Mission Categories
Primary: Rural Community Development
Use of Funds
Allowed Uses
Through the Small Dollar Loan Program, the CDFI Fund provides (1) grants to enable a certified Community Development Financial Institution (CDFI) or any partnership between a certified CDFI and federally insured depository institution, with a primary mission to serve targeted Investment Areas, to establish a loan-loss reserve fund in order to cover the losses on small dollar loans from a new small dollar program or an existing small dollar loan program; and (2) grants for Technical Assistance to a certified CDFI or any partnership between or among certified CDFIs to establish and maintain small dollar loan programs. Small Dollar Loan Program grants cannot be used to provide direct loans to consumers. This program is intended to provide an alternative to high-cost small dollar loans, as well as help unbanked and underbanked populations build credit, access affordable capital, and allow greater access into the mainstream financial system.
Matching Requirements
Small Dollar Loan Program applicants are required to match grants for Loan Loss Reserve with non-Federal funds in an amount equal to 50 percent of the amount of the grant, unless waived by Congress in the applicable appropriations. Technical Assistance grants do not have matching requirements.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements