Treasury Department funds support CDFI effort

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Treasury Department officials said the agency’s Community Development Financial Institutions Fund (CDFI Fund) has earmarked grants totaling more than $ 10.8 million to help expand consumer access to financial institutions. .

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Officials said community development finance institutions (CDFIs) would benefit from the allocation through the small dollar loan program (SDL program).

“I am proud to announce the first round of Small Dollar Loan Program rewards, which will help provide borrowers with affordable alternatives to small, high-rate loans and expand consumer access to traditional financial products,” he said. said Jodie Harris, Director of the CDFI Fund. “The awards will provide CDFIs with the capital necessary to establish loan loss reserves that are essential to support small dollar lending initiatives, as well as technical assistance to help build their capacity to manage small loan programs in the future. dollars. “

The SDL program helps certified CDFIs respond to expanding consumer access to traditional financial institutions. The CDFI Fund enables Loan Loss Reserve (LLR) Grants – establishing a loan loss reserve fund to cover the costs of establishing or maintaining a program of small loans and grants for the loan. Technical assistance (TA), supporting technology, personnel and other eligible activities enable a certified CDFI to establish and maintain a small dollar loan program.

Regarding the allocation of funds, the Treasury Department reported that of the 52 recipients, 13 SDL program scholarships totaling nearly $ 3 million were awarded to recipients headquartered in what has been designated as the persistent poverty counties.

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