Maine officials have activated a loan guarantee program aimed at helping federal and state employees impacted by prolonged government shutdowns.
The Government Shutdown Loan Guarantee Program, established through LD 874, is administered by the Finance Authority of Maine (FAME) in partnership with the Bureau of Financial Institutions (BFI) and the Office of the State Treasurer. The program provides interest-free loans to eligible employees when a shutdown lasts more than seven consecutive days.
FAME oversees the program for participating Maine financial institutions but does not lend directly to individuals. Instead, participating banks and credit unions offer short-term relief loans to workers affected by the shutdown.
Under the program, lenders apply to the Bureau of Financial Institutions and sign contracts with FAME to administer the loans. If a borrower defaults, lenders may file a claim with FAME for repayment through a loan guarantee fund managed by the Treasurer’s Office. Lenders set loan terms within the program’s guidelines.
To qualify, borrowers must be Maine residents employed by a federal or state agency who are either required to work without pay or furloughed without pay during a shutdown.
Eligible workers can contact participating banks or credit unions to apply. If their financial institution is not participating, they may ask it to enroll with FAME. Borrowers cannot enroll directly through FAME.
Currently, cPort Credit Union and Franklin Savings Bank are participating in the program. Participating institutions may change over time as lenders opt in or out.
This information was provided by Meredith Whitfield, Chief Communications Officer at FAME, in response to a Maine Wire inquiry.
More information is available at FAME Maine’s website.
