(WAND) — Illinois State Treasurer Michael Frerichs is committing $50 million to fund zero-interest and low-interest loans to unpaid federal workers during the government shutdown.
An estimated 153,000 federal employees live and work in Illinois, and the Treasurer's Office said it is uncertain how many have not been receiving pay since the shutdown started on October 1.
"It is truly disheartening that a D.C. dispute over the right to affordable health care has reached a point where the federal government has locked out some workers and forced others to continue working without pay," said Frerichs. "Our no-interest loan program aims to provide much-needed relief to workers, ensuring they can feed their families, pay their mortgage, and stay current with electric and water bills."
The loans will be issued through participating banks and credit unions across Illinois, with money made available through the Treasurer's linked-deposit program.
The Treasurer deposits money in financial institutions for the purpose of helping unpaid federal workers. In turn, the financial institutions loan that money to federal workers at below-market rates. The Treasurer's Office will deposit money at 0.01 percent if the financial institution agrees to loan out the money to federal workers at zero percent.
The specific rates and terms of eligibility will vary by financial institution.
One participating lender is Great Lakes Credit Union (GLCU), which has 20 branches across Chicagoland and Danville.
"Helping those in need is at the heart of our Banking for a Greater Good mission," said GLCU Chief Experience Officer Patrick Basler. "We welcome the opportunity to provide financial solutions for federal employees during this challenging time."
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