Federal Register #CDFI2026SDL

FY 2026 Small Dollar Loan Program Grants for Community Development Financial Institutions

The Community Development Financial Institutions Fund (CDFI Fund), part of the U.S. Department of the Treasury, is announcing the FY 2026 Small Dollar Loan Program (SDL Program) funding round. - 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) - Supports the establishment or expansion of small dollar consumer loan programs in underserved rural and urban communities - Funding Details: - Total anticipated funding: approximately $9 million - Individual awards range from $20,000 to $350,000 - Grants may be used for: - Loan Loss Reserves (LLR) to cover losses on small dollar consumer loans (up to $350,000) - Technical Assistance (TA) for technology, staff, and other eligible activities (up to $150,000) - Combination of LLR and TA grants (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 - No specific OEMs or commercial vendors are named, as this is a grant program for financial institutions rather than a procurement of goods or services

Description

The Community Development Financial Institutions Fund (CDFI Fund) is offering grants through the Small Dollar Loan Program (SDL Program) to Certified Community Development Financial Institutions (CDFIs). The program provides grants for Loan Loss Reserves to cover losses on small dollar consumer loans and grants for Technical Assistance to support technology, staff, and other activities to establish and maintain small dollar consumer loan programs. Recipients will serve rural and urban communities across the United States that lack access to affordable consumer lending products. All awards are subject to funding availability.

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