Government Shutdown Loan Program Now Available
Franklin Savings Bank is participating as a local lender in Maine’s Government Shutdown Loan Program (LD 874) , which provides financial relief for government employees impacted by a shutdown.
Through this program, qualified applicants may receive up to three loans, with a maximum total amount of $6,000, based on their most recent monthly after-tax pay, less any unemployment benefits received – whichever is less.
Key features of the program:
- 0% interest and no fees during the 90-day grace period and the 180-day repayment period that follows.
- No credit check or credit history required to determine eligibility.
- A simple affidavit confirming employment status and that the applicant is not receiving a loan from another participating lender.
- Repayment made in three to six equal installments within 180 days after the grace period ends.
We understand that a government shutdown can create uncertainty for many hardworking individuals and families. By participating in this program, we’re helping ensure that those impacted have a trusted local partner to turn to for support.
If you’re a government employee affected by the shutdown, we encourage you to reach out – our team is here to help guide you through the process.
Government Shutdown Loan Program FAQ
Who is eligible for this program?
This program is available to federal and state employees living in Maine who are affected by a government shutdown lasting longer than seven consecutive days. Borrowers must provide proof of employment, proof of income, and Maine residency.
How much can I borrow?
Eligible borrowers may qualify for up to three loans, with each loan amount equal to the lesser of $6,000 or their most recent monthly after-tax pay, reduced by any unemployment benefits received.
Do I need good credit to qualify?
No. Your credit history or credit score cannot be used to determine eligibility for this program.
Will I be charged interest or fees?
No. Loans under this program carry 0% interest and no fees during both the 90-day grace period and the 180-day repayment period that follows. There are also no prepayment penalties if you pay the loan off early.
When does repayment begin?
Repayment begins after the 90-day grace period and must be completed within 180 days, in three to six equal installments.
What documentation is required?
Applicants will need to provide:
- Proof of employment (federal employee ID or employer’s federal tax ID number)
- Proof of income (recent pay stub or bank statement)
- Proof of Maine residency
- A sworn affidavit confirming employment status, eligibility for back pay, and any unemployment benefits received.
Can I receive a loan from more than one bank?
No. Participants may only receive a loan from one eligible financial institution under this program during a shutdown.
Who administers this program?
The Finance Authority of Maine (FAME) administers the Government Shutdown Loan Guarantee Program in partnership with the Maine State Treasurer and participating local lenders, including Franklin Savings Bank.
Where can I learn more?
For full program details, visit FAME Maine’s website or contact support@famemaine.com.
Disclosure:
Franklin Savings Bank is a participating lender in Maine’s Government Shutdown Loan Guarantee Program (LD 874). Loan eligibility, amounts, and repayment terms are determined in accordance with program rules administered by the Finance Authority of Maine (FAME). Terms and conditions apply.