Building a Bridge to Affordability for Working Americans

Affordability is one of the most pressing issues affecting working families today as inflation and rising expenses outpace wage gains. The Federal Reserve recently found that 37% of adults cannot cover an unexpected $400 expense. In Chicago, that means that nearly 800,000 adults are living paycheck-to-paycheck, without a cushion. 

After Illinois passed the Predatory Loan Prevention Act, which capped interest rates for consumer loans at 36 percent, payday lenders ceased operating in the state. This stopped a predatory industry from bleeding Illinois communities of their wealth, but working Chicagoans still sometimes need access to emergency cash for unexpected expenses. Upon conducting a scan of 51 loan products available in Illinois, New America Chicago discovered that there was a lack of affordable loan products for those that regularly experienced misaligned cash flow or had expenses exceed income and needed financial assistance in a timely manner.

Seeing a need to help working adults access affordable emergency small-dollar loans and build greater financial wellness and stability, the Corporate Coalition of Chicago, the Woodstock Institute, and Transunion came together to develop the Workplace Flex Fund, an employer-sponsored low-interest emergency loan program.

The Affordability Crisis Hits Employers as well as Employees

For employers, workers’ financial struggles can be costly, as employees’ personal financial strains often spill over into the workplace. Research from PwC’s Employee Financial Wellness Survey found that financially stressed workers spend more than three hours each week while on the clock focused on personal financial concerns. A MetLife study found that financially stressed employees are twice as likely to miss work. 

The affordability crisis and America’s K-shaped economic recovery (higher-income households are thriving, while simultaneously lower-income families are falling behind, visually resembling the letter “K”) are accelerating this challenge. According to TransUnion’s Q1 2026 Credit Industry Insights Report, the number of super prime and subprime borrowers are growing. 

Data also show that debt-to-income ratios have climbed significantly for subprime borrowers, demonstrating the mounting financial pressure facing financially vulnerable Americans. This reflects not reckless borrowing, but the reality of expenses outpacing income growth among households with the least financial cushion. 

Building the Bridge to Affordability: Credit as a Pathway, Not a Trap

Perhaps the most powerful insight from the TransUnion analysis is what happened after borrowers originated small-dollar loans. Among subprime borrowers, successful repayment was associated with meaningful credit score improvement: nearly 19 percent moved into the near-prime tier within six months of origination. Among near-prime borrowers, 11 percent reached prime status within the same timeframe.

Affordable credit does not trap borrowers in a cycle of debt. It builds credit history, which eventually opens the door to purchasing cars and homes and utilizing the full suite of wealth-building assets the financial system offers.

The Solution: Employer-Sponsored Small Dollar Loans

Recognizing the power of business to think differently and implement human-centered policies to support employees, the Corporate Coalition of Chicago convened partners at TransUnion and the Woodstock Institute to develop a unique solution. The partnership was also able to benefit from research conducted by New America Chicago– community design sessions with residents illuminated the components that borrowers would find attractive or discouraging when looking for a small-dollar loan.

After reviewing program models and insights from consumers, the Corporate Coalition and Woodstock Institute came up with the Workplace Flex Fund, a ready-made benefit employers can implement to help employees build financial stability and navigate financial challenges more easily, more affordably, and with dignity when they arise.

When companies offer the Workplace Flex Fund, employees can access same-day, small-dollar emergency loans at half the market rate with no credit check, repaid through simple payroll deductions. Once repaid, employees keep contributing toward savings, building credit and long-term financial stability along the way.

The Workplace Flex Fund officially launched in July at Fillmore Linen Service, a West Side business providing laundry and linen services for Chicago’s healthcare industry.

Great Lakes Credit Union is the lending partner that administers the program for Fillmore Linen. It reflects the nonprofit cooperative institution’s commitment to investing in underbanked communities, while also providing value-added tools and resources for commercial banking customers. 

The partnership behind the Workplace Flex Fund demonstrates how private-sector collaborations that support workers are good for business. When employers implement employee-centered programs and policies, they gain greater workforce reliability and help families succeed.  

Great Lakes Credit Union and Fillmore Linen Service are not alone. Lenders and employers across the Chicago region see this vital need and are building a bridge to stability together. Three additional financial institutions will offer the product in the months ahead, and employers are taking steps to implement this necessary benefit.