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.

Active 21.025 Community Development Financial Institutions Fund, Department of The Treasury B - Project Grants Fiscal Year 2022 Visit the CDFI Fund website for information on program accomplishments. The information can be accessed via www.cdfifund.gov/programs-training/Programs/sdlp Public Law 111-203
The Small Dollar Loan Program is a program authorized by Title XII – Improving Access to Mainstream Financial Institutions Act of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (P.L. 111-203), which amended the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. § 4719). 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. Not applicable. An entity that is a certified CDFI, or a partnership between a certified CDFI and federally insured depository institution with a primary mission to serve targeted Investment Areas, or a partnership between or among certified CDFIs is eligible to apply for a Small Dollar Loan Program Award. The Community Development Financial Institutions Fund (CDFI Fund) must receive a complete Small Dollar Loan Program Award application by the deadline set forth in the applicable Notice of Funds Availability (NOFA). Additional eligibility requirements are set forth in the applicable NOFA. Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. All applications must be received by the established deadline. The CDFI Fund reviews applications and makes awards based on an established awards review process, set forth in the NOFA and application materials. Contact the headquarters or regional location, as appropriate for application deadlines 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. Not applicable. Not applicable. 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. 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. This information is announced in the annual NOFA published in the Federal Register. Performance Reports: Performance Monitoring is also accomplished with the financial review of Audited Financial Statements or Single Audits conducted pursuant to 2 C.F.R. Part 200, Subpart F - Audit Requirements. Small Dollar Loan Program recipients are also required to submit Performance Progress Report (PPR) (OMB Control Number 1559-0050). The Annual Certification and Data Collection Report (ACR) (OMB Control Number 1559-0046) is submitted by certified CDFIs that receive Small Dollar Loan Program awards. The ACR requires a certified CDFI to annually assess and report on any changes to criteria supporting its CDFI certification, as well as some additional organizational, financial, and other data. The CDFI Fund uses this report to monitor the certified CDFI’s compliance with certification criteria and collect data to gain greater insight into the CDFI industry. Not applicable. Award recipients must maintain records to substantiate all Award costs incurred and to assure that all performance measures are met. Records must be retained in accordance with the provisions of applicable OMB guidance and the terms of the Assistance Agreement. Statutory formula is not applicable to this assistance listing.

Matching is . 50%. 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. Funds must be used within three years of executing an Assistance Agreement and must be used for Small Dollar Loan Program authorized activities set forth in the applicable NOFA. Method of awarding/releasing assistance: Lump. None/Not specified. Community Development Financial Institutions Fund Small Dollar Loan Program
1500 Pennsylvania Avenue, N.W.
Washington, DC 20220 US
sdlp@cdfi.treas.gov
Phone: 2026530300 http://www.cdfifund.gov 20-1881-0-1-451 (Project Grants) FY 22$11,410,759.00; FY 23 est $0.00; FY 24 est $18,000,000.00; FY 21$10,589,229.00; FY 20 Estimate Not Available - FY 2021 Range of awards $61,500 to $415,000; Average Award $211,785; FY 2022 Range of awards $33,522 to $271,988; Average Award $172,890. 2 C.F.R. Part 200; Small Dollar Loan Program NOFA; and application materials. Fiscal Year 2022 Visit the CDFI Fund website for examples of funded projects. The information can be accessed via https://www.cdfifund.gov/programs-training/programs/sdlp.