Bill > LD874

This bill establishes a Government Shutdown Loan Guarantee Program to provide financial relief to federal and state employees affected by government shutdowns lasting more than 7 consecutive days. The program allows eligible employees who are working without pay or furloughed to receive loans up to $6,000 from participating financial institutions with very favorable terms. Specifically, these loans will have a grace period during which no interest or penalties can be charged, and employees will have 180 days after the grace period to repay the loan in 3-6 installments. To qualify, employees must be state residents, provide proof of employment status, and submit an affidavit confirming their eligibility. The Finance Authority of Maine will administer the program, guaranteeing loan repayment through a special fund established with an initial transfer of $250,000. Financial institutions cannot consider the employee's credit score when making loans, and employees can receive up to three loans during a single shutdown. If a loan is not repaid, the state will ultimately compensate the financial institution, with the authority then attempting to recover the funds. The program is designed to provide immediate financial support to government workers during unexpected and potentially prolonged shutdowns, helping them meet basic living expenses while awaiting back pay.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=874&snum=132