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 Seattle Metropolitan Credit Union a $280,000 Project Grant under the Small Dollar Loan Program (CFDA 21.025). The grant will enable the credit union to establish a loan loss reserve and receive technical assistance to develop and maintain a small dollar loan program through December 2024. The Small Dollar Loan Program aims to increase affordable alternative lending to underbanked and unbanked populations to help them build credit and access mainstream financial services. Specifically, the funding will defray costs of establishing and maintaining the credit union's small dollar loan portfolio and support related technology, staffing, and eligible activities. No subrecipients are involved in delivering loan and technical assistance services under this award.

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.