Federal Register #CDFI 2026SDL

CDFI Fund Seeks Applications for Small Dollar Loan Program Grants (FY 2026)

The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) is seeking applications for the FY 2026 Small Dollar Loan Program (SDL Program): - Government Buyer: - U.S. Department of the Treasury, Community Development Financial Institutions Fund (CDFI Fund) - Program Purpose: - Provides grants to Certified Community Development Financial Institutions (CDFIs) to establish or expand small dollar consumer loan programs - Focuses on serving underserved rural and urban communities with limited access to affordable consumer lending - Funding Details: - Total estimated funding: $9,000,000 - Individual awards range from $20,000 to $350,000 - Estimated number of awards: 66 - Grant Categories: - Loan Loss Reserve (LLR) Grants: For establishing reserve funds to cover losses on small dollar loans (up to $350,000) - Technical Assistance (TA) Grants: For technology, staff support, and other eligible activities (up to $150,000) - Combination Grants: Mix of LLR and TA funding (up to $8,570,000 total) - Product/Service Requirements: - Eligible loans must not exceed $2,500, be repaid in installments, have no prepayment penalty, and require payment reporting to credit agencies - Emphasis on affordable, responsible lending practices - Prohibits high-rate loans, coerced repayments, and aggressive debt collection - Eligibility: - Only Certified CDFIs may apply - Funds must be used to establish or expand small dollar consumer loan programs - No specific OEMs or commercial vendors are involved, as this is a grant program for financial institutions

Description

The Community Development Financial Institutions (CDFI) Fund is offering grants through the Small Dollar Loan Program (SDL Program) for Fiscal Year 2026. The program provides funding for Loan Loss Reserves (LLR) and Technical Assistance (TA) to Certified CDFIs to establish or expand small dollar consumer loan programs. These programs aim to serve rural and urban communities lacking access to affordable consumer lending products. The total estimated funding available is $9,000,000, subject to availability.

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