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 1st Bergen Federal Credit Union was awarded a $157,500 project grant through the Small Dollar Loan Program administered by the Department of the Treasury's Community Development Financial Institutions Fund. The grant aims to increase access to affordable capital and credit-building opportunities for underserved populations through the establishment and maintenance of a small dollar loan program. Funding will support the creation of a loan loss reserve fund to offset costs and provide technical assistance activities such as staff training, technology upgrades, and other eligible expenses to enable the credit union to launch and sustain small dollar lending. Expected outcomes include expanded small dollar lending to help unbanked and underbanked individuals build credit histories and greater participation in the mainstream financial system. No sub-recipients or partnerships are involved in carrying out activities under this award expiring on 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.