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 (CDFI Fund) awarded Fnbc Bancorp Inc. a $230,000 Project Grant under the Small Dollar Loan Program (CFDA 21.025). The grant will enable the recipient to establish a loan loss reserve and provide technical assistance to support small dollar lending. Through this alternative lending model, the intended outcomes are to help the unbanked and underbanked populations build credit, access affordable capital, and greater participation in the mainstream financial system. No subrecipients are involved in delivering the program's services. The two-year award period runs from September 2021 through December 2024 and will be performed domestically.

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.