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 $415,000 Project Grant from the Department of the Treasury's Community Development Financial Institutions Fund will support Optus Financial Corporation's small dollar lending program through December 2024. Under the Small Dollar Loan Program (CFDA 21.025), the grant provides funding for loan loss reserves and technical assistance to enable the certified Community Development Financial Institution to establish and maintain affordable small dollar loans. Such loans help the unbanked and underbanked build credit and access mainstream financial services. No subrecipients are involved. The expected outcomes are increased responsible small dollar lending that expands access to capital and financial inclusion.

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.