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BayCoast Bank has introduced a new program to support active-duty military and essential federal employees impacted by the government shutdown.
“Our Emergency Federal Employee Loan Program is designed to provide valuable gap financing to help cover basic living expenses for active military and federal employees who are required to work but are not currently being compensated,” Baycoast Bank President and CEO Nicholas M. Christ said in a statement. “We truly care about assisting our neighbors and it our hope this program will help ease any potential hardship for individuals and families affected by the government funding lapse.”
The program offers loans from $1,000 to $15,000 and interest-free financing for six months.
The anticipated turnaround time for this new loan program, from application approval to funding, is one to two business days, BayCoast said in its announcement. Participants will make no payments for five months, with a balloon payment of the entire outstanding principal balance due at the end of the loan term or within 15 days of receipt of back pay for time worked without compensation.
Eligible federal government employees include federal law enforcement officers (Border Patrol, Customs and Border Protection, FBI, DEA, and U.S. Marshals), Transportation Security Administration agents, air traffic controllers, emergency response personnel, federal prison and courthouse employees and emergency medical care providers.
Employees of the Department of Health and Human Services, National Park Service, Environmental Protection Agency, National Institutes of Health, NASA, Department of Housing and Urban Development, Postal Service, Social Security Administration, Department of Veterans Affairs and Internal Revenue Service are not eligible, BayCoast said.
BayCoast isn’t alone in these efforts.
Fannie Mae and Freddie Mac have directed loan servicers to “assist borrowers affected by the shutdown, reminding them that they are authorized to offer forbearance plans when needed,” said the National Housing Conference.
And Navy Federal Credit Union is offering a 0 percent APR loan to certain government employees, as is Congressional Federal Credit Union.
