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…

This $205,000 Project Grant from the Department of the Treasury's Community Development Financial Institutions Fund will support the Small Dollar Loan Program. Administered through the CDFI Fund's Small Dollar Loan Program (CFDA #21.025), the grant provides technical assistance and loan loss reserves to enable Iowa Community Capital, a certified Community Development Financial Institution, to establish and maintain a small dollar loan program. The program aims to increase access to affordable small dollar loans for underbanked and unbanked populations, helping them build credit and access $205K in mainstream financial services. No subrecipients are involved. The grant period runs from September 23, 2021 through June 30, 2025.

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.