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.