(CHICAGO) — 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.
The loans will be issued through participating banks and credit unions across Illinois with money made available through the Treasurer’s linked-deposit program. An estimated 153,000 federal employees live and work in Illinois. It is uncertain how many are not receiving their salaries.
“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,” said Frerichs.
Great Lakes Credit Union, with 20 branches across Chicagoland and Danville, is a participating lender.
“We are excited that Treasurer Frerichs created this opportunity,” said Patrick Basler, Chief Experience Officer at GLCU. “Helping those in need is at the heart of our Banking for a Greater Good mission. We welcome the opportunity to provide financial solutions for federal employees during this challenging time.”
Financial institutions interested in participating in the Federal Workers Emergency Loan Program must become an approved depository. Interested parties are encouraged to contact the Treasurer’s Office at investinillinois@illinoistreasurer.gov.
The Federal Workers Emergency Loan Program is like other linked-deposit programs the Illinois State Treasurer’s Office offers. The office provides financial institutions with money to loan to farmers, small business owners, and qualified individuals at below-market rates. The most utilized deposit program is Ag Invest, which has loaned more than $6 billion to farmers and ag-related businesses since 1983.
