ADDENDUM 2 - RFP for BUSINESS CAPITAL AND TECHNICAL ASSISTANCE.pdf

RFP for BUSINESS CAPITAL AND TECHNICAL ASSISTANCE

Addendum No. 2 Page 1 of 6 AUGUST 24, 2026

Revised 04/2026

ATTENTION ALL BIDDERS

ADDENDUM NO. 2 to

Date: August 24, 2026

From: Economic and Workforce Development Department

To: Prospective Proposers

1. This Addendum No. 2 forms a part of the Contract Documents and modifies the original Request for Proposal Documents.

2. Acknowledge receipt of Addendum No. 2 in the space below and attach this signed document to the Proposal.

3. For questions regarding the following topics below:

i. Project-related questions, contact Contract Administration, contractadmin@oaklandca.gov

ii. For Contract Administration questions (e.g., attachments, etc.) please email contractadmin@oaklandca.gov

iii. Open contracting opportunities https://apps.oaklandca.gov/ContractOpportunities/

iv. iSupplier questions and/or requests to receive an invitation to participate in a project, please send an email to isupplier@oaklandca.gov

4. If you have already registered via iSupplier and did not receive an invitation for this project, please send an email to iSupplier@oaklandca.gov with “RFP for BUSINESS CAPITAL AND TECHNICAL ASSISTANCE” as the subject and we will add you to the invitation list.

5. Please see questions and answers for questions received to

ContractAdmin@Oaklandca.gov by the Questions Due Deadline:

mailto:contractadmin@oaklandca.gov https://apps.oaklandca.gov/ContractOpportunities/ mailto:isupplier@oaklandca.gov mailto:iSupplier@oaklandca.gov mailto:ContractAdmin@Oaklandca.gov

Addendum No. 2 Page 2 of 6 AUGUST 24, 2026

1. To clarify, if we have any additional questions we should email them to you by August 6?

A: Yes, the questions due deadline was August 6th, 2026. Questions should have been submitted via email ONLY to contractadmin@oaklandca.gov, by August 6th. Any questions received after the questions due deadline are not included in this Addendum No. 2.

2. Are you looking for a partner to lend money or just provide advice?

A: Both. The City is looking for a partner for lending, who can also advise small businesses through 1:1 Technical Assistance, financial preparedness, to help businesses get ready for loans and other financial products.

3. How large is the City's current revolving credit line?

A: $331,000 with a portfolio of six loans, 3 of which are active.

4. What is the general loan size needed by participants of this loan program?

A: Loan size can vary and is dependent on the specific deal. It is up to the lender to determine the appropriate loan size based on the underwriting criteria.

5. Is there a maximum loan size?

A: There is no official maximum loan amount.

6. Non-CDFI Eligibility: The RFP requires the contractor to be a U.S. Department of the Treasury-certified CDFI. Would the City consider modifying this requirement to allow qualified non-CDFI organizations with demonstrated experience in loan readiness technical assistance, capital navigation, underwriting support, and community-based loan program management to submit proposals?

A: These funds are administered by the City of Oakland on behalf of the Housing and Urban Development Department, Community Development Block Grants. Therefore, only qualified CDFI’s are eligible to provide the service.

7. Separation of Technical Assistance and Lending: Would the City consider separating the scope into two distinct components or contracts: (1) lender-neutral loan readiness technical assistance, capital navigation, outreach, intake, and referrals; and (2) loan underwriting, origination, servicing, and revolving loan fund administration? Separating these functions could allow the City to select the most qualified provider for each area. A lender-neutral technical assistance provider could help Oakland businesses assess a range of financing options and connect with the capital provider that best fits their needs, rather than limiting technical assistance and referrals to the products or underwriting criteria of a single selected CDFI

A: We do have the option to select multiple CDFIs. CDFIs can opt to work with a partner organization or consultant to help carry out parts of the scope.

Addendum No. 2 Page 3 of 6 AUGUST 24, 2026

8. Access to Other Lenders: Will businesses receiving loan-readiness technical assistance be expected to apply first to the selected contractor’s revolving loan fund, or may the technical assistance provider help businesses prepare for and apply directly to other lenders when another product is a better fit?

A: Yes, the technical assistance provider can help businesses prepare for and apply directly to other lenders as well.

9. Use of Capitalization Funding: The RFP states that the City anticipates approximately $300,000 annually in capitalization funding, minus administrative overhead paid to the provider. What portion of the $300,000 does the City expect to be deployed as loan principal, and what amount or percentage may be used for technical assistance, outreach, staffing, loan administration, servicing, compliance, and other operating costs?

A: The City has not established a required allocation of the approximately $300,000 in annual funding between loan principal and other eligible costs associated with delivering the Scope of Services.

Proposers may propose an allocation based on their approach to delivering the required services, subject to applicable CDBG requirements.

10. Existing Loan Program & Openness to Changes: The City appears to have existing revolving loan fund products, terms, eligibility criteria, underwriting practices, loan documents, approval processes, and servicing policies. Will the selected contractor be expected to continue administering the existing program substantially as currently structured, or is the City seeking a contractor to review and recommend changes to the program design and lending practices? If the City is open to changes, to what extent may proposers recommend culturally responsive and character-based underwriting approaches, revised loan terms, or other practices intended to improve access for historically underserved Oakland businesses while maintaining prudent lending standards and CDBG compliance?

A: The selected contractor will be expected to continue administering the existing Revolving Loan Fund AND have the ability to implement changes to the program design and lending practices, to the degree that they are consistent with CDBG/HUD regulations and requirements. Contractor may advise on program design and lending practices with the City of Oakland Program Manager.

11. Support for Existing Loan Portfolio: Will the selected contractor be required to assume servicing and portfolio management responsibility for the City’s existing revolving loan fund portfolio, or will the contractor be responsible only for loans originated under the new contract? If the selected contractor will assume an existing portfolio, can you please provide an overview of the number of outstanding loans, aggregate principal balance, and summary of repayment status, delinquency and default history, and anticipated transition responsibilities?

A: The selected contractor will assume servicing and portfolio management responsibility for the City's existing Revolving Loan Fund portfolio, in addition to carrying out the lending and capital access activities described in the Scope of Services. The existing $331,000 portfolio includes 2 current loans, 0 delinquent loans, 1 loan in default, 1 written off loan, and 2 fully repaid loans for a total of 6 loans. The current balance and cash available for lending is $65,779.64 and the principal outstanding on loans is

Addendum No. 2 Page 4 of 6 AUGUST 24, 2026

$184,152.23 as of December 31, 2025.

12. The RFP stipulate a contact amount of $300,000. It is unclear whether this is paid as fee to the contractor or is the amount the City is planning to contribute to the revolving loan fund. Could you please clarity?

A: The approximately $300,000 annual contract amount will be paid to the selected contractor to carry out the Scope of Services.

13. Can you share any of the outcomes for the prior program? Did the prior contractor deliver as desired or were there some shortcomings in their service delivery?

A: The outcomes for the prior program are outlined in the Scope of Work. The prior contractor delivered as expected.

14. Is this program subject to approval by some other entity as is mentioned? Who is the entity and when will you know for sure the funds are available.

A: The funding is subject to the availability of HUD CDBG (Housing and Urban Development Community Development Block Grant) funding. Funds have been secured for the first year with subsequent years contingent on HUD CDBG funding allocations.

15. As a variant of question 7, will the $300,000 contract amount be available for fund out-of-pocket expenses (staff support, training materials, etc)?

A: Yes. The approximately $300,000 may be used for eligible costs associated with carrying out the Scope of Services, including applicable staffing and program administration costs. See responses to Questions 9 and 17 regarding allocation and administrative costs.

16. Is there a recording available from the July 30th Voluntary Pre-Proposal Meeting for Business Capital & Technical Assistance RFP?

A: No. Please see Exhibit 1 for the slides that were presented at the Pre-Proposal Meeting.

BUDGET AND FINANCIAL STRUCTURE

17. Is the cost of program administration, including staffing, servicing, and compliance reporting, to be funded from the approximately $300,000 in annual capitalization, or is administrative cost funded separately? If administration is drawn from the capitalization, does the City have an expected or maximum administrative percentage?

A: Program administration can be funded from the $300,000. The borrower’s cost of administering a Section 108 loan can be allocated to the CDBG administration cap of 20 percent, or the costs can be included as an activity delivery cost in carrying out the project. For example, if a borrower’s employees underwrite economic development loans that are to be made with Section 108 funds, the portion of

Addendum No. 2 Page 5 of 6 AUGUST 24, 2026 their salaries spent on this function can be treated as costs of carrying out the activity. This is important because these costs are not subject to the limitation on the use of CDBG funds to pay planning and administrative costs.

18. Which party bears loan losses on the City-supported revolving loan fund? May a loan loss reserve be capitalized from the annual allocation, and if so, is there a limit on the amount that may be reserved?

A: The City has not established a final determination regarding responsibility for loan losses or whether a loan loss reserve may be capitalized from the annual allocation. These matters will be addressed, as applicable, during contract development with the selected contractor.

19. At the conclusion of the agreement, including any renewal term, who retains ownership of outstanding loan principal, loan repayments, and any revolved capital remaining in the fund? What are the City's expectations for the disposition or transfer of those assets?

A: After the contract concludes, the City’s Revolving Loan Fund would be transferred back from contractor back to the City of Oakland. Outside of the City of Oakland’s Revolving Loan Fund, loans would remain the responsibility of the lender.

PROGRAM OPERATIONS

20. Is there an existing loan portfolio under a current or prior contractor that the selected proposer would be expected to assume, service, or coordinate with? If so, what is the approximate size and status of that portfolio?

A: Yes, there is an existing Revolving Loan Fund that the selected contractor would have to manage.

See response to question 11 for loan portfolio details.

21. Does the City retain approval authority over individual loan decisions, or does the selected contractor hold credit authority within underwriting policies approved by the City?

A: Selected contractor has complete approval authority, provided that they meet the requirement that at least 51% of clients served fall under CDBG Section 108 eligibility guidelines.

22. What is the anticipated contract start date and expected timing of notice to proceed following award? Are the annual performance targets prorated in the event of a partial first year?

A: Anticipated contract start date is October 1, 2026. Contractor can begin services as soon as contract has been executed. Annual performance targets will not be prorated but the selected contractor may work with the program manager on adjusting performance targets, if needed.

EVALUATION AND REPORTING

23. Will proposer contributions of matching funds, leveraged capital, or co-lending commitments be considered by the evaluation panel, and if so, under which evaluation criterion?

Addendum No. 2 Page 6 of 6 AUGUST 24, 2026

A: Yes. Under the Project Approach and Work Plan and Costs evaluation criterion.

24. For the semi-annual and annual loan performance reporting referenced for the City's economic development loan platform, is a specific system, data format, or file specification required? If documentation of the platform's reporting requirements is available, we would appreciate receiving it.

A: The City of Oakland submits semi-annual reports on the Economic Development Agency (EDA) web portal. More information about the EDA Revolving Loan Fund Administration can be found on the EDA website at: Revolving Loan Fund (RLF) | U.S. Economic Development Administration

Marina De La Torre, Management Assistant

ADDENDUM NO. 2 ACKNOWLEDGED:

Signature of Bidder Date https://www.eda.gov/funding/programs/revolving-loan-fund