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 Community Development Financial Institutions Fund awarded $280,000 under the Small Dollar Loan Program (CFDA 21.025) to Cooperativa De Ahorro Y Credito De Lares on September 23, 2021. Through this Project Grant, the awardee will establish a loan loss reserve and receive technical assistance to support small dollar lending to underserved populations through 2024. Specifically, the funding will enable the certified Community Development Financial Institution to defray costs of maintaining a small dollar loan program and support related technology, staffing, and eligible activities. The intended outcomes are increased access to affordable capital and credit building opportunities for unbanked and underbanked individuals, allowing greater participation in the mainstream financial system. There are no sub-awardees associated with 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.