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 Community Development Financial Institutions Fund within the Department of the Treasury awarded A.e.a. Federal Credit Union a $175,000 Project Grant under the Small Dollar Loan Program (CFDA 21.025). The grant aims to provide an alternative to high-cost small dollar loans and help unbanked and underbanked populations build credit and access affordable capital.

Through the grant, A.e.a. Federal Credit Union will establish a loan loss reserve fund and receive technical assistance to develop and maintain a small dollar loan program. The program is expected to increase small dollar lending to benefit underserved communities in the United States. No subrecipients are involved. The grant period runs from September 23, 2021 through December 31, 2024.

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.