2026-13200NoticeWallet

CDFI Fund Opens Small Loan Program Applications

Published Date: 6/30/2026

Notice

Summary

The Small Dollar Loan Program is opening its FY 2026 funding round, offering $9 million to help community lenders provide small loans and support services. If you’re a community financial group, now’s your chance to apply for loan loss reserves or technical help grants, with awards ranging from $20,000 up to $350,000. Get ready—applications will be reviewed soon, and this funding can boost your ability to serve more people with affordable loans!

Analyzed Economic Effects

10 provisions identified: 5 benefits, 5 costs, 0 mixed.

$9M in Grants for Community Lenders

The CDFI Fund is making $9,000,000 available in the FY 2026 Small Dollar Loan Program. Individual awards will range from $20,000 up to $350,000 across Loan Loss Reserve, Technical Assistance, and combination award categories.

Who Can Apply: Certified CDFIs Only

Only Certified Community Development Financial Institutions (CDFIs) may apply, or specified partnerships (e.g., a Certified CDFI with a Federally Insured Depository Institution for LLR awards). Regulated institution applicants must meet regulator ratings (CAMELS/CAMEL composite of at least "3") and banks must have a CRA rating of at least "Satisfactory."

Required Loan Features for Funded Programs

Awards must support small dollar consumer loans that: do not exceed $2,500, are repaid in installments, have no prepayment penalty, and have payments reported to at least one nationwide consumer reporting agency.

Prohibited Lending Practices for Recipients

SDL Program-funded loan programs may not use prohibited practices such as loans above a 36% all-inclusive APR (or state limit), coerced automated repayments, excessive refinancing before 80% principal is repaid, forced add-ons, excessive late fees, abusive overdraft collections, aggressive debt collection, or forced arbitration/class-action bans.

Technical Assistance Payment and Spending Rules

TA Award recipients must expend at least 35% of their TA Award by the end of Year 1 and 100% by the end of Year 3. Recipients can choose lump-sum or initial+subsequent payments; the initial request must be at least 35% and 90% of that initial amount must be disbursed before a subsequent payment. Failure to request a subsequent payment within 12 months may allow the CDFI Fund to terminate its obligation to pay remaining TA funds.

Recipients Must Meet 3-Year Performance Goals

SDL Program recipients must close small dollar consumer loans consistent with the Applicant's three-year projected loan totals and meet performance goals during a Period of Performance that begins at award announcement and covers three full consecutive fiscal years.

Priority for Persistent Poverty County Applicants

To comply with statutory direction, the CDFI Fund will prioritize funding to Applicants whose headquarters are located in Persistent Poverty Counties (PPCs); at least 10% of CDFI Fund appropriations are directed to PPCs under the cited statutes.

Matching Funds Requirement Waived

The FY 2025 appropriation waived the SDL Program's Matching Funds requirement, so Applicants are not required to submit matching funds when applying for the FY 2026 Funding Round.

Application Deadlines and Helpdesk Cutoffs

Key deadlines: create AMIS account, enter EIN/UEI, and submit SF-424 by July 23, 2026 (11:59 p.m. ET); contact program and compliance helpdesks by July 28, 2026 (5:00 p.m. ET); AMIS technical helpdesk by July 30, 2026 (5:00 p.m. ET); and submit SDL Program Application and attachments via AMIS by July 30, 2026 (11:59 p.m. ET).

Awards May Not Finance Direct Consumer Loans

SDL Program Awards may not be used to provide direct loans to consumers; awards must be used to support or finance activities that establish or maintain small dollar consumer loan programs (e.g., loan loss reserves or technical assistance).

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Key Dates

Published Date
6/30/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Community Development Financial Institutions Fund
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