CDFI Small Dollar Loan applications far exceed available funding

by David Baumann, CUCollaborate

CDFIs have submitted applications requesting $32.1 million from the CDFI Small Dollar Loan Program—almost three times the amount of funding available, the Treasury Department announced Friday.

Up to $11.1 million is available for awards through the program.

Some 92 organizations requested funding in the second year of the program, CDFI Fund officials said, adding that 45 applications came from credit unions, 31 were from loan funds and 16 were from banks or bank holding companies.

Inside the Numbers

Six organizations requested $1.7 million in loan loss reserve funds. Those awards enable a CDFI to establish a loan loss reserve fund in order to cover losses on small dollar loans.

 

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