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Applications now open for CDFI Fund FY24 small dollar loan program
The Community Development Financial Institutions (CDFI) Fund Friday opened applications for the fiscal year 2024 funding round for its small dollar loan program, which is intended to expand consumer access to financial institutions by providing alternatives to high-cost small dollar lending.
The small dollar loan program is also intended to help underserved populations build credit, access affordable capital, and allow greater access into the mainstream financial system.
Through the program, CDFIs can apply for two types of grants:
- grants for loan loss reserve, which enable CDFIs to establish a loan loss reserve fund to cover losses on small dollar loans associated with expanding or establishing small dollar loan programs; and
- grants for technical assistance, which support technology, staff support, and other eligible activities to enable CDFIs to establish or expand small dollar loan programs.
Up to $18 million in awards is available through the 2024 round of the program. Additional details on how to apply to the program – including the full application timeline – can be found on the CDFI Fund’s website; the deadline for submitting program applications is 5 p.m. Eastern on Dec. 20, 2023.
In addition, the CDFI Fund will host two live webinars to answer applicant questions about the application process: one happening on Nov. 2 at 2 p.m. Eastern and another happening Nov. 16 at 2 p.m. Eastern.
NAFCU is active on CDFI issues and will continue to engage the CDFI Fund, lawmakers, and credit union members both independently and as part of the CDFI Fund Coalition.