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…

The Department of the Treasury's Community Development Financial Institutions Fund awarded $280,000 under the Small Dollar Loan Program (CFDA 21.025) federal grant to Cani's Center For Community And Economic Development, Inc., doing business as Brightpoint Development Fund, on September 23, 2021.

Through this project grant, Brightpoint Development Fund will establish a loan loss reserve and receive technical assistance to develop and maintain a small dollar loan program. The loan loss reserve and technical assistance will enable Brightpoint to provide alternative financing options to underbanked populations, help build credit histories, and increase access to affordable capital and mainstream financial services. The expected outcomes are an expansion of small dollar lending of less than $100 to support financial inclusion and credit access for communities in need. No subrecipients are involved in delivering the program's services.

Activities

Through the SDL program, the CDFI fund will provide: grants for loan loss reserves (LLR): the awards will enable a certified community development financial institution (CDFI) to establish a loan loss reserve fund in order to defray the costs of establishing or maintaining a small dollar loan program. Grants for technical assistance (TA): the awards will support technology, staff support, and other eligible activities to enable a certified CDFI to establish and maintain a small dollar loan program. End goal/expected outcomes: expected outcomes are an increase in small dollar lending to help unbanked and underbanked populations build credit, access affordable capital, and allow greater access into the mainstream financial system.

Intended beneficiaries

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.

Subrecipient activities

There are no subrecipients for this program.