South Shore Savings Bank in South Weymouth has agreed to issue up to $200,000 in loans to military personnel as part of the state’s Homefront Financial Security Loan Progam.

Public support for the government’s war efforts against terrorism in Afghanistan has reached levels unprecedented since World War II.

As was the case in that earlier era, the support stems from a horrific loss of human life in attacks carried out on American soil. And much like then, grassroots efforts to aid those affected by the attacks and soldiers on the front lines are in no short supply.

After Sept. 11, local banks raised millions of dollars to aid the victims and their families. Continuing in that tradition, banks more recently have responded to a call by state Treasurer Shannon P. O’Brien to help local soldiers.

The Homefront Financial Security Loan Program offers loans of up to $10,000 to Massachusetts reservists and National Guard members who have been called to active duty since September.

“At a time like this, when the reservists are protecting all of us here in the commonwealth, it’s simply the least we can do to offer them some protection for them and their families,” said O’Brien.

The program, which began on Nov. 26, offers loans through 14 participating banks. Military personnel may apply for the loans and don’t have to begin paying them back until after their active duty service is completed. They then have two years to pay back the loans at a 3 percent interest rate. Participating bank have made committed various amounts to the program and, in return, receive 2.5 times the money loaned in deposits from the state. The state treasury will earn a 2.85 percent rate of return on its deposits.

“The commonwealth will continue the program up until the point at which they reach $10 million in loans,” O’Brien said. A $25 million cap has been placed on the program. To date, 169 loans have been taken out for a total of $1.5 million.

Of that, Citizens Bank of Massachusetts has issued 93 loans totaling $881,700. According to Citizens spokeswoman Melodie Jackson, the bank will remain in the program as long as the reservists need it.

‘The Right Thing’

Jackson called the program “absolutely a good thing and the right thing to do.” She pointed out that although their primary jobs must be held for them while they are away, employers aren’t required to pay salaries to the reservists while they are gone.

“It can sometimes leave their families in a bind, particularly in situations where you’ve got two working parents. Then there are financial issues that can arise because of the difference in what their income is,” said Jackson. “We just felt that they’re out there supporting our country and it’s the right thing to do to support them.”

Publicity for the program has come in the form of letters distributed through the military to reservists and guardsmen, but South Shore Savings Bank in South Weymouth recently issued a press release announcing its involvement in the program to spread the word.

The bank has agreed to make up to $200,000 in loans. “The reason we did the press release – even though it [the program] has begun [in November], we’ve had only one inquiry and that person hasn’t come in for a loan. So we’re trying to get the word out …” said John C. Boucher, president and chief operating officer of the $640 million asset-asset bank.

“We certainly didn’t do it for money-making [purposes] because it’s not a money maker. It’s the same reason we do a lot of loan programs that are at reduced rates, because it’s just the right thing to do,” said Boucher.

O’Brien got the idea from a similar program run by the Illinois treasurer, she said. “That’s one of the things I’ve tried to do since I’ve become treasurer, is to look around the country at the best practices and adopt them if they fit, and obviously other treasurers around the country have done the same for programs we’ve implemented as well,” she said.

By November, 2,000 Massachusetts reservists and guard members had been called to active duty.

“We feel the low-cost loan program is a marvelous initiative, coming at a time when Army reservist soldiers and families might need financial assistance,” said Eric Hurwitz, public affairs specialist for the U.S. Army Reserve’s 94th Regional Support Command in a public statement. “Many of our ‘citizen-soldier’ Army reservists work full-time jobs and are raising families in addition to fighting for our country’s well-being. In turn, it is truly magnanimous that the public and private sectors are fighting for the soldier’s financial well-being. We are most appreciative.”

O’Brien said the reaction has been overwhelmingly positive throughout the commonwealth. “Obviously there’s a demand; we hit the $1 million mark in loans after only six or seven weeks,” she said.

“The purpose of it was to help people when they get called to active duty,” said Boucher. “To help them meet their current obligations is really what it’s designed for, and to give them a little break in rates and terms.”