Bill > LD2113

Introduced Session

This bill establishes the Federal Shutdown Loan Guarantee Program. The program, administered by the Finance Authority of Maine, or FAME, provides access to no-interest loans for certain federal employees in Maine affected by a partial or full shutdown of the Federal Government that lasts for longer than 14 consecutive days by guaranteeing up to 10% of the loans eligible credit unions and financial institutions make to affected employees. Under the bill, affected employees are eligible for up to 3 loans during a shutdown, each equal to their monthly after-tax pay, less unemployment benefits, up to a maximum of $6,000. Eligibility must be proven by the employee based on certain requirements; the creditworthiness of an employee may not be used as a factor to determine eligibility for the program. An eligible financial institution that makes a loan pursuant to the program is prohibited from requiring repayment of the loan during the grace period, which is the time during the shutdown or 90 days after the disbursement of the loan, whichever is later, and from imposing interest on the loan for 180 days following the grace period. Following the end of the 180 days, an institution that made a loan under the program, after a good faith effort to collect the principal amount of the loan, may apply to FAME for repayment of the uncollected amount of the loan in default. The Treasurer of State is required to transfer funds for the payment of the uncollected amount to FAME, which is required to make the payment to the financial institution. FAME is required to make reasonable efforts to recoup the amount of any payments made to eligible financial institutions from the employee who defaulted on the loan. Finally, the bill gives the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs, in consultation with the joint standing committee of the Legislature having jurisdiction over financial services matters, authority to report out legislation to address any funding needs of the program.

AI Summary

Committee Categories

Troy Jackson (D)*,  Donna Bailey (D),  Mattie Daughtry (D),  Anne Perry (D),  Cameron Reny (D),  Rachel Talbot Ross (D),  Eloise Vitelli (D), 

Died Upon Conclusion of the 131st, Dec 4, 2024 (on 12/04/2024)

Bill Topics

Official Document