Some Iowa credit unions and banks are offering special loans and payments plans to help those affected by the partial federal government shutdown. About 2,700 Iowans work for departments that have lost their funding.
First Federal Credit Union CEO Tom Chalstrom says the program is aimed at them. “Anybody impacted by the furlough can obtain up to a $5,000 unsecured loan, that’s interest free, no interest, during the course of the furlough. And no one knows how long that is,” Chalstrom says. He says the loan provisions are linked to the shutdown.
“We won’t start applying interest to the loan until the day they get paid,” he explains. Chalstrom says First Federal will also work with farmers on an individual basis, if they’re missing out on farm loan or tariff relief payments.
“We’ll work with anybody that’s impacted by the furlough on an individual basis,” according toe Chalstrom. “It is targeted towards government employees per se, but somebody that would come to us in that situation, absolutely we would look at it.”
The University of Iowa Community Credit Union and Veridian are also offering special loans or grace periods. Bank Iowa, the People’s Bank and First Citizens Bank also say they’ll work out individualized plans for federal employees.
(Thanks to Kate Payne, Iowa Public Radio)