2322241
Project Grant
Overview
Grant Description
SBIR Phase I: Digital Underwriting Platform for Underserved Borrowers - The broader impact/commercial potential of this Small Business Innovation Research (SBIR) Phase I project will enhance the understanding of predicting default risks for borrowers that lack traditional access to loans and credit. The project will result in a digital platform that efficiently underwrites borrowers for small dollar loans using an innovative technical approach.
The project will allow any lender to use the platform to efficiently make small dollar loans, sparing traditionally underserved borrowers from costly alternative financial products. This technology helps financially vulnerable households maintain stability when financial emergencies strike. This Small Business Innovation Research (SBIR) Phase I project develops more effective ways to underwrite small dollar loans for traditionally underserved borrowers.
Nearly half of the adults in the U.S. lack a prime credit score that is sufficiently high to allow them access to loans and credit. Traditional lenders are hesitant to lend to applicants with lower credit scores, due to a perceived higher risk of loss. The systems and information that are used to generate credit scores have limitations that can prohibit credit-worthy borrowers from receiving small dollar loans.
The project will investigate alternative methodologies of underwriting small dollar loan applicants. The research will test these alternative methodologies and compare them to traditional credit scoring as a determinant of credit risk, and by extension, loan application approval. Upon completion, the project will demonstrate that an alternative underwriting methodology can generate lower default rates and more equitable lending decisions for small dollar loans when compared to traditional credit scores.
This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria. - Subawards are not planned for this award.
The project will allow any lender to use the platform to efficiently make small dollar loans, sparing traditionally underserved borrowers from costly alternative financial products. This technology helps financially vulnerable households maintain stability when financial emergencies strike. This Small Business Innovation Research (SBIR) Phase I project develops more effective ways to underwrite small dollar loans for traditionally underserved borrowers.
Nearly half of the adults in the U.S. lack a prime credit score that is sufficiently high to allow them access to loans and credit. Traditional lenders are hesitant to lend to applicants with lower credit scores, due to a perceived higher risk of loss. The systems and information that are used to generate credit scores have limitations that can prohibit credit-worthy borrowers from receiving small dollar loans.
The project will investigate alternative methodologies of underwriting small dollar loan applicants. The research will test these alternative methodologies and compare them to traditional credit scoring as a determinant of credit risk, and by extension, loan application approval. Upon completion, the project will demonstrate that an alternative underwriting methodology can generate lower default rates and more equitable lending decisions for small dollar loans when compared to traditional credit scores.
This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria. - Subawards are not planned for this award.
Awardee
Funding Goals
THE GOAL OF THIS FUNDING OPPORTUNITY, "NSF SMALL BUSINESS INNOVATION RESEARCH (SBIR)/ SMALL BUSINESS TECHNOLOGY TRANSFER (STTR) PROGRAMS PHASE I", IS IDENTIFIED IN THE LINK: HTTPS://WWW.NSF.GOV/PUBLICATIONS/PUB_SUMM.JSP?ODS_KEY=NSF23515
Grant Program (CFDA)
Awarding / Funding Agency
Place of Performance
Charlotte,
North Carolina
28203-0085
United States
Geographic Scope
Single Zip Code
Salus Financial Technology was awarded
Project Grant 2322241
worth $274,541
from National Science Foundation in September 2023 with work to be completed primarily in Charlotte North Carolina United States.
The grant
has a duration of 1 year and
was awarded through assistance program 47.084 NSF Technology, Innovation, and Partnerships.
The Project Grant was awarded through grant opportunity NSF Small Business Innovation Research / Small Business Technology Transfer Phase I Programs.
SBIR Details
Research Type
SBIR Phase I
Title
SBIR Phase I:Digital Underwriting Platform for Underserved Borrowers
Abstract
The broader impact/commercial potential of this Small Business Innovation Research (SBIR) Phase I project will enhance the understanding of predicting default risks for borrowers that lack traditional access to loans and credit. The project will result in a digital platform that efficiently underwrites borrowers for small dollar loans using an innovative technical approach. The project will allow any lender to use the platform to efficiently make small dollar loans, sparing traditionally under-served borrowers from costly alternative financial products. This technology helps financially vulnerable households maintain stability when financial emergencies strike._x000D_ _x000D_ This Small Business Innovation Research (SBIR) Phase I project develops more effective ways to underwrite small dollar loans for traditionally underserved borrowers. Nearly half of the adults in the U.S. lack a prime credit score that is sufficiently high to allow them access to loans and credit.Traditional lenders are hesitant to lend to applicants with lower credit scores, due to a perceived higher risk of loss. The systems and information that are used to generate credit scores have limitations that can prohibit credit-worthy borrowers from receiving small dollar loans. The project will investigate alternative methodologies of underwriting small dollar loan applicants. The research will test these alternative methodologies and compare them to traditional credit scoring as a determinant of credit risk, and by extension, loan application approval. Upon completion, the project will demonstrate that an alternative underwriting methodology can generate lower default rates and more equitable lending decisions for small dollar loans when compared to traditional credit scores._x000D_ _x000D_ This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.
Topic Code
AA
Solicitation Number
NSF 23-515
Status
(Complete)
Last Modified 9/5/23
Period of Performance
9/1/23
Start Date
8/31/24
End Date
Funding Split
$274.5K
Federal Obligation
$0.0
Non-Federal Obligation
$274.5K
Total Obligated
Activity Timeline
Additional Detail
Award ID FAIN
2322241
SAI Number
None
Award ID URI
SAI EXEMPT
Awardee Classifications
Small Business
Awarding Office
491503 TRANSLATIONAL IMPACTS
Funding Office
491503 TRANSLATIONAL IMPACTS
Awardee UEI
UJD5RUELBBV4
Awardee CAGE
8W9C2
Performance District
NC-14
Senators
Thom Tillis
Ted Budd
Ted Budd
Budget Funding
| Federal Account | Budget Subfunction | Object Class | Total | Percentage |
|---|---|---|---|---|
| Research and Related Activities, National Science Foundation (049-0100) | General science and basic research | Grants, subsidies, and contributions (41.0) | $274,541 | 100% |
Modified: 9/5/23