After failing to get legislative approval, Gov. John Carney announced a state-guaranteed, low-interest loan program to assist unpaid federal workers dealing with the federal shutdown.
Assisting in the program is M&T Bank.
Loans funded through the program announced Thursday would be made by a financial institution and with a loan guarantee from the Delaware State Housing Authority (DSHA).
Workers and their families could use loan proceeds to keep up with their mortgages, pay utility bills, and other housing-related expenses during the shutdown. In partnership with the State of Delaware, West End Neighborhood House will assist workers in completing applications and will offer optional financial coaching services.
About 500 federal employees who live in Delaware continue to go unpaid.
“Federal workers in Delaware and across the country are going without pay during this shutdown through no fault of their own,” said Carney. “These workers have families who rely on their paychecks to pay their mortgages and other important bills. We ought to do what we can to help our neighbors as this shutdown continues.”
Legislation to offer a state program failed in the General Assembly.
Under the new program, DSHA will guarantee the loans from revenue generated through the agency’s Homeownership Loan Program (HLP).
Federal workers may access the loans with no credit check required, and will be eligible to receive up to one-month’s net pay.
“In the past, DSHA has guaranteed similar short term housing assistance loans provided by West End Neighborhood House, and we are glad to use the resources established through our existing partnerships to respond quickly to this unique need,” said Anas Ben Addi, director of the Delaware State Housing Authority.
The loans will offer flexible payment terms and optional financial counseling through the $tand by Me program. Loan managers also will help applicants determine eligibility, complete the necessary paperwork, and the amount of the available loan. M&T Bank, in partnership with West End Neighborhood House, has agreed to make loans available statewide under the program.
“The West End Neighborhood House does great work helping Delawareans achieve self-sufficiency through economic independence,” said Nick Lambrow, president of M&T Bank’s Delaware Region. “We have supported West End for nearly a century, and are glad to support their efforts to expand the existing Loans Plus program and provide short-term, low interest loans to those impacted by the partial government shutdown.”
