CBA Fund Loan and Grant Application - ERP Cohort

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About this Opportunity

Application Accommodations

We offer the opportunity to provide the application responses in alternate formats, including audio and Word documents and are happy to provide accessible formats for people with disabilities.

Please email cbafund@creditbuildersalliance.org if you would like to apply using an alternate format.

Under Title VI of the Civil Rights of 1964, you have the right to submit a compliant for Discrimination to the Department of the Treasury or CBA Fund, which are accessible via this link: https://www.creditbuildersalliance.org/compliance/.

CBA Fund offers the opportunity to provide the application questions in alternate languages as requested. To request the application form in another language, please email cbafund@creditbuildersalliance.org.

CBA Fund ofrece la oportunidad de proporcionar las preguntas de la solicitud en idiomas alternativos según se solicite. Para solicitar el formulario de solicitud en otro idioma, envíe un correo electrónico a cbafund@creditbuildersalliance.org
 

CBA Fund, CBA's Community Development Financial Institution Intermediary, is excited to announce a new funding opportunity for nonprofit lenders whose headquarters are located in designated CDFI Fund Equitable Recovery Program geographies. 


CDFI ERP Eligible Geographies are those areas that meet one of the following criteria:

  • Census tracts that demonstrate severe impact from the COVID-19 pandemic, have a median income at or below 120% of the area median income, and are CDFI investment areas; or 
  • Native areas.

Areas of consideration include all 50 states, the District of Columbia, and Puerto Rico.


Please download and review these instructions for determining your organization's eligibility for this funding before you complete the loan and grant application.


CBA Fund is providing loan capital, capacity building grants, and technical assistance to nonprofit lenders so they can offer affordable small dollar consumer loans (SDCL) to low- to-moderate income in their communities. This support comes as a package (applicants should plan to apply for both loan capital and grant funds). We invite organizations to read through the criteria below and apply by August 16, 2024.


We consider people to be low- to-moderate income (LMI) individuals if they earn less than 80% of Area Median Income (AMI).


Loan capital: We are providing up to $150,000 in loan capital with a repayment period of two or three years. The loan comes with a 1% origination fee and an interest rate of 2% or 3%. (See more about the terms in loan application.)

Grants: The loan capital comes with a capacity building grant of up to $8,000 that can be used for any costs associated with your consumer lending program.

Technical Assistance: CBA Fund TA is based on your needs and our capacity to meet those needs. You will also participate in cohorts that meet to share best practices and problem solve issues related to small dollar consumer lending. You will also participate in a cohort with other lenders and meet quarterly to share best practices and problem solve issues related to small dollar consumer lending. 


Eligibility Criteria


To be eligible for funding your organization must:

  • Be a 501(c)(3) nonprofit organization, credit union, or Native agency

  • Currently be a CBA member in good standing or are willing to become one
  • Demonstrate the ability to use funds for an existing or new small dollar consumer loan program.   
Note: We define SDCLs as loans used for personal stability uses/household purposes. These loans can be of any size, but loans that are $2,500 or less are preferred. SDCLs can include but aren't limited to: payday loan alternatives/refinance loans, emergency loans, credit builder loans, home repair loans, assistive technology loans, auto loans, etc.  Our definition does NOT include small business loans or mortgages.
  • Currently report or are willing to report the loans to the major consumer credit bureaus.
  • Have or have started the processes to get the appropriate state lending license(s) to provide consumer loans as required or can prove that your organization is exempt from needing one. Reach out to cbafund@creditbuildersalliance.org for assistance.

  • Offer loan terms that are affordable, flexible, and conducive to credit building
    • Total APR of 36% or less
    • Loan term is at least six months
    • Offer options for payment modifications/flexibility as feasible, as demonstrated in your loan policies and procedures
  • Be in good financial standing according to past audits (if available) or independently reviewed financials and current year-to-date financials and budget/projections.

  • Have the ability to track individual credit score outcomes, and able to provide basic information on program outputs and outcomes throughout the grant period or be willing to set up to do this.

  • Be able to disburse around 75% of the capital received within a year of receiving it. We provide some flexibility for those starting a new SDCL program.

 

Priority Criteria


CBA Fund will prioritize funding to organizations that:

  • That serve BIPOC communities and are led by the populations they serve

  • Demonstrate a commitment to racial equity within their organization and through their loan program

  • Have a strong plan for use of funding

  • Are offering an accessible and affordable loan product that:
    • Was designed with community input
    • Is meant to reach people in your community who have limited access to capital 
    • Utilizes equitable underwriting criteria and flexible but standardized loan servicing policies
  • Provide additional support to borrowers along with the loan

Applications are due by 8/16/2024. If your organization meets the criteria, we encourage you to apply! 


The first step is taking the eligibility quiz (click next page). All applications will be rated by a panel of reviewers using the eligibility and priority criteria listed above. CBA Fund will notify applicants of our decision by 9/30/2024. The grant period is one year, but we will request outcome data for the full term of the loan. You can contact cbafund@creditbuildersalliance.org with any questions.



Eligibility Quiz

Before you fill out the application, please take this eligibility quiz to make sure you are qualified for the funds.






Member





















Non-Member









Organizational Information


Your organization is likely eligible for this funding!

Please fill out the application by 
11:59 PM (ET) on 8/16/2024.

As you craft responses, keep in mind that when reading your application CBA Fund reviewers value:
  • information about your programs and processes rather than external data sources
  • responses that directly answer the question, bullet points are ok if that's the easiest way to answer!
  • honesty about your capacity and program needs

* Please remember to save your application*


Organization Information



Please do not enter a placeholder EIN like "99-9999999"







Mailing Address





Contact Information






Program Information






Hold Ctrl to select multiple loan products


Hold Ctrl to choose multiple states.

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Commitment to Racial Equity

CBA Fund seeks to disrupt systems of oppression by actively facilitating equitable lending and credit building in BIPOC communities in a way that does not perpetuate the status quo. CBA Fund prioritizes working with organizations that have a strong commitment to racial equity.





CBA Fund has a commitment to support BIPOC led and serving organizations. We prioritize those with a majority (50% or greater) BIPOC leadership team, staff, Board, and borrowers.




Plan for Use of Funds

*Please remember to save your application*



Small Dollar Consumer Loan Terms

To receive this funding, the total APR of your loans must be 36% or less, and a loan term of at least six monthsPriority criteria: loans with APRs below 18%.                                                                                                                                                                                                           
 We will assess your loan product's APR using this APR calculator.









Please enter the amount of months

Please enter the amount of months

We prioritize small dollar consumer loans that are $2,500 or less. We will consider loans that are larger than $2,500 on a case-by-case basis. Please provide the sizes of consumer loans you will use this funding to support.












If you receive a loan and grant from CBA Fund you will be required to use soft credit pulls to track credit score outcomes.






The interest rate on the loan capital will be based on your organization's leadership and asset size.

Your organization will receive a 2% interest rate if you meet one of the following criteria:
  • BIPOC leadership - led by and serving primary BIPOC community 
  • Have less than $4 million in assets and $2 million or less in revenue

Your organization will receive a 3% interest rate if you meet the following criteria:
  • Not BIPOC-led and have more than $4 million in assets and over $2 million in revenue









Required Documents