September 23, 2021
(St. Paul, Minn. | Sept. 23, 2021) — Sunrise Banks has received $280,000 from the United States Department of the Treasury that will allow the bank to support growth in consumer small-dollar lending, which acts as an alternative to predatory lending products like payday loans.
The money comes as part of the Treasury’s inaugural Small Dollar Loan (SDL) program, which allocated more than $10 million to Community Development Financial Institutions (CDFIs) across the country. Sunrise was one of 52 CDFI award recipients.
“I am proud to announce the inaugural round of Small Dollar Loan Program awards, which will help provide borrowers affordable alternatives to high-rate small dollar loans and expand consumer access to mainstream financial products,” said CDFI Fund Director Jodie Harris. “Awards will provide CDFIs capital needed to establish loan loss reserves that are critical to the support of small dollar lending initiatives, as well as provide technical assistance to help build their capacity to operate small dollar loan programs.”
The award allocated $175,000 to Sunrise for loan loss reserves to support growth in small-dollar lending and $105,000 for technical assistance to support these programs.
Sunrise Banks is a proponent of safe, small-dollar lending and works with partners like Self, TrueConnect and Gusto to provide responsible loan options for consumers.
The SDL program grants can only be used to support small-dollar loan programs that offer loans in amounts of $2,500 or less and have payments that are reported to at least one of the consumer reporting agencies.
Find a complete list of SDL program award recipients here.
About Sunrise Banks: Sunrise Banks, N.A., based in St. Paul, Minnesota, strives to be the most innovative bank empowering financial wellness. Sunrise is certified by the U.S. Treasury as a Community Development Financial Institution (CDFI), a designation earned by approximately 100 banks nationwide. Sunrise Banks is also a member of the Global Alliance for Banking on Values, a public benefit corporation and a certified B Corp for its demonstrated commitment to transparent corporate governance and positive community impact. Learn more at SunriseBanks.com, on Twitter @SunriseBanks, or on Facebook. Member FDIC.