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Economic Justice Fund

Building Financial Opportunities with Small Dollar Loans

Imagine you’re suddenly hit with an unexpected car repair bill, an unforeseen medical expense, or a family emergency. Your next paycheck is still days away, and your savings account falls short of covering the urgent expense. It’s a situation that many of us have encountered, leaving us searching for financial solutions that are both fast and won’t plunge us into deeper financial trouble. This is where small dollar loans step in, offering a crucial lifeline during challenging times.

Small dollar loans are invaluable financial resources, particularly for individuals interested in building or improving their credit scores. In the short term, these loans act as a safety net if you face a temporary financial setback, bridging the gap between immediate needs and the next paycheck. Yet, their benefits extend beyond immediate relief: they are great for building a solid credit history that can open doors to future financial opportunities.

Understanding Small Dollar Loans

Small dollar loans are short-term, low-cost consumer loans that typically range from $300 to $5,000, with most falling under $2,500. Several key features characterize these loans:

1. Equal Monthly Payments: Unlike payday loans, where the entire amount is due on your next paycheck, small dollar loans offer the convenience of fixed, equal monthly payments over time. This makes them more manageable for borrowers.

2. Affordability: Small dollar loans are designed with low interest rates that do not exceed a certain percentage of a borrower’s monthly income. This ensures they are an affordable alternative to high-cost credit products such as payday, pawnshop, or auto title loans.

3. No Collateral Required: Generally, you do not need to provide collateral like a car title or property to apply for a small dollar loan, making them accessible to a broader range of individuals.


Establishing and improving your credit is essential for long-term financial stability, and small dollar loans can be instrumental in achieving this goal. Each on-time repayment on a small dollar loan contributes positively to your credit history. This is especially significant for individuals with limited credit history or low credit scores, as these loans are often accessible to them.

The Economic Justice Fund (EJF) understands the importance of credit-building, and to empower its borrowers, it has launched a new Credit-Building Initiative that offers small dollar loans. EJF reports borrower loan data to major Consumer Reporting Agencies, including Experian, TransUnion, and Equifax.

Moreover, EJF loan applicants are not required to have a minimum credit score for approval. Instead, they must be employed, provide documentation of monthly income, demonstrate a recent history of on-time payments, and have sufficient income to make monthly loan payments.

The Credit-Building Initiative offers fair and affordable small dollar loans tailored to meet the needs of a wide range of borrowers, featuring:

  • Free credit reporting to major Consumer Reporting Agencies
  • Fee-free financing with no application, origination, servicing, or prepayment fee.
  • Low, fixed interest rates
  • Flexible terms ranging from 12 to 60 months
  • Flexible underwriting standards that enable EJF to approve borrowers whom traditional lenders might not
  • Complimentary ACH disbursements for next-day availability of funds
  • Automatic recurring monthly loan payments

In addition to the Credit-Building Initiative, EJF has introduced the Equitable Opportunity Loan, providing small dollar loans ranging from $500 to $2,500 to borrowers in California who urgently need capital but face barriers with traditional lenders. This loan offers fair and affordable financing for emergency expenses and enables borrowers to establish and build their credit histories.

Get a Small Dollar Loan Today With the Economic Justice Fund

The Economic Justice Fund is a mission-driven, nonprofit lender dedicated to helping Americans pursue the American Dream. We believe that all Americans, regardless of income, race, gender, or zip code, should have access to fair, affordable financing. We are certified as a Community Development Financial Institution by the U.S. Department of the Treasury.

EJF offers low-cost loans that help you reach your goals safely and responsibly. You can complete our application in less than five minutes, and one of our Loan Specialists will quickly review your application. Loans are funded as fast as one business day. Apply today!

EJF is certified as a Community Development Financial Institution by the U.S. Department of the Treasury. In addition to ethical, equitable loans, we provide financial training and credit building services to empower individuals in underserved communities. Read our success stories and choose the financing plan that fits your needs!