The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) opened the fiscal year (FY) 2024 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 SDL Program funding 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 cannot exceed $2,500 and must be unsecured. The CDFI Fund is posting the Notice of Funds Availability (NOFA) on its website in anticipation of its publication in the Federal Register on October 25, 2023.
Through the SDL Program, the CDFI Fund provides:
Grants for Loan Loss Reserves (LLR): The awards enable a Certified Community Development Financial Institution (CDFI) to establish a loan loss reserve fund to cover the losses on small dollar loans associated with establishing or expanding a small dollar loan program.
Grants for Technical Assistance (TA): The awards support technology, staff support, and other eligible activities to enable a Certified CDFI to establish or expand a small dollar loan program.
Eddie Tsibulevskiy, Program Manager on the Depository Institutions Initiatives team, Julie Sandler, Associate Program Manager on the Depository Institutions team, and Amy Apitz, Management & Program Analyst on the Depository Institutions Initiatives at the CDFI Fund willprovide more information on the SDL Program on Thursday, November 9th at 2:00 p.m. ET.