Small Dollar Loan Program

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.

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.

Evaluation factors include: (1) financial strength and organizational capacity of applicant, (2) business strategy review, (3) community impact, and (4) other factors set forth in the Small Dollar Loan Program NOFA and application materials.

This program has no statutory formula. 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.MOE requirements are not applicable to this assistance listing.

Fiscal Year2022: Visit the CDFI Fund website for examples of funded projects. The information can be accessed via https://www.cdfifund.gov/programs-training/programs/sdlp.Fiscal Year2024: Visit the CDFI Fund website for examples of funded projects. The information can be accessed via https://www.cdfifund.gov/programs-training/programs/sdlp.