MI Affordable Loan partners needed to close equity gaps for low-income Michiganders

Expanded RFP to seek participating lenders offering same-day, on-demand loans

LANSING, Mich. — The Michigan Department of Labor and Economic Opportunity (LEO) issued a Request for Proposals (RFP) to launch the state’s new MI Affordable Loan program to support low-income individuals with obtaining small dollar, short-term loans, while modeling inclusive lending practices and closing equity gaps present for traditional bank loans. The RFP has been expanded to ensure participating lenders offer same-day, on-demand loans recognizing financial emergencies often require immediate access to funds. 

“The MI Affordable Loan program is about bringing efficient financial relief to those who need it,” said Susan Corbin, Director of the Michigan Department of Labor and Economic Opportunity. “By expanding the MI Affordable Loan Program to include same-day lending, we're making this pilot more responsive to the realities Michigan families face while creating a practical, accessible option when people need it most.”

The RFP is open to organizations that have demonstrated experience and success in providing low-barrier access to loans for those who may not typically engage with financial institutions. Through this pilot program, the grantees will develop a small dollar, short-term loan product that allows customers to take out an on-demand, same-day loan of up to $1,200, payable in a 12-month period and with an APR of no more than 36%. 

The goal of the program is to model the economic viability of a lending product that isn’t financially exploitative for people with adverse credit histories. This program will support LEO’s strategic goal of promoting inclusion and closing equity gaps by providing reasonable loan rates to those who may not otherwise qualify for traditional bank loans and assist those who do not have or utilize an existing bank account to build credit.

Senator Sarah Anthony has been a leading advocate for expanding affordable lending options in Michigan and played a pivotal role in securing funding for this program.

“With so much of a family's budget already going toward groceries, housing, childcare, and other essentials, an unexpected expense can be difficult to absorb,” said Sen. Sarah Anthony (D-Lansing). “Expanding access to these types of small-dollar loans will help provide a reliable option during those moments, helping people navigate a setback without falling even further behind. I'm proud to partner with the department on this effort and continue my work to strengthen responsible lending reforms in our state.”

Applicants must have a strong understanding of the barriers and factors that affect this population’s ability to obtain loans. The organization must possess the capacity to carry out their responsibilities to coordinate and perform administrative activities, communicate goals and ensure an innovative approach to improving financial stability for the target population. Throughout the duration of the grant, the organization will work closely with LEO, as all final decisions about the program’s strategic direction and vision will be made by the LEO grant administrator.

An informational webinar on the grant and the application portal, EGrAMS, will be held on Monday, Aug. 24 at 1 p.m.

Proposals will be accepted through Sept. 28, 2026. To learn more about the RFP and how to join the webinar, visit the MI Affordable Loan webpage.

Questions about the MI Affordable Loam program may be sent to LEO-PovertyTaskForce@michigan.gov.