The state-owned Bank of North Dakota is partnering with local banks and credit unions to provide short-term low interest loans to federal government employees and members of the armed services stationed in North Dakota, if they experience financial hardship because of the federal government shutdown.
The “Furloughed Federal Employee Relief program” will provide help at a two percent interest rate. The borrower must be a federal employee or contractor living in North Dakota, or a member of the military stationed here.
The state’s Industrial Commission approved the program.
"By the end of next Friday, if we're still in a government shutdown, people are going to start missing paychecks," said Gov. Kelly Armstrong, chair of the Industrial Commission. "That gives us time to actually develop the program, and assure that our bankers have the adequate time to review this. We want people to know it's there, and we want people to apply for it."
Armstrong said the hope is that people won't have to use it, because the shutdown ended.
"But we want to make sure nobody misses a car payment or a day care payment or rent payment," Armstrong said. "That's absolutely living paycheck to paycheck."
Grand Forks Mayor Brandon Bochenski attended the Commission meeting. He said he had talked to the 139th wing commander at the Grand Forks Air Force Base about this program.
"He's absolutely blown away that a state would do this for his airmen," Bochenski told reporters. "This could change the trajectory for young airmen stationed in Grand Forks or Fargo for the first time, and they know that the state supports them, that could make them stay in the military longer, and it could get them to come back to North Dakota once they separate. What a tremendous program, and Grand Forks is so grateful. It's truly North Dakota at its finest."
Applications will be accepted beginning this Friday.
