Employee Loan Services

The City of Tucson is seeking a provider to establish an employee small-loans program as a voluntary benefit for city employees through Request for Proposal (RFP) No. 240027. The selected contractor will offer collateral-free loans with a streamlined application process, requiring underwriting and funding to be completed within 48 hours of application. Loans must be provided through an FDIC insured bank, NCUA insured credit union, or U.S. Treasury certified Community Development Financial Institution, with competitive market interest rates. The program mandates that employee debt cannot exceed 20 percent of their annual net pay, and loan repayment will occur through bi-weekly payroll deductions. Key deliverables include marketing the program, managing loan collections, and providing quarterly statistical reports to the City. The proposal is due on Thursday, April 11, 2024, at 2:00 P.M. local Arizona time, with a pre-submittal conference scheduled for Thursday, March 21, 2024, at 1:00 P.M. via Microsoft Teams. The initial contract term is one year, with potential extensions for up to four additional one-year periods.

The solicitation appears to have Section 3 Program requirements, which prioritize economic opportunities for low- and very low-income persons. Contractors must comply with specific labor hour benchmarks, including 25% of labor hours performed by Section 3 Workers and 5% by Targeted Section 3 Workers. While no specific budget range is explicitly stated, the program requires the lending institution to have robust financial capabilities and a flexible loan structure. The City of Tucson will likely evaluate proposals based on interest rates, loan processing speed, collection mechanisms, and compliance with municipal requirements. Disadvantaged Business Enterprise (DBE) participation may be considered, as indicated by the attached Federal Transit Administration terms and conditions. The procurement follows federal guidelines, including HUD regulations, and requires extensive documentation and compliance with equal employment and labor standards. Potential respondents must demonstrate financial stability, technological capability for quick loan processing, and a commitment to serving municipal employees' financial needs.