Lamont: Bank offers no-interest loans for some affected by shutdown

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There are between 1,200 and 1,300 federal employees in the state of Connecticut. They’re TSA agents, air traffic controller‘s, EPA, and more, and they’re not getting paychecks due to the partial federal government shutdown.

Related: Trump says solution to shutdown impasse ‘so simple’

Even though they’re not getting paid, they are still required to work. So governor Ned Lamont teamed up with the CEO of Webster Bank John Ciulla, to offer short-term bridge loans to federal employees who need them.

“So they wouldn’t be paying any interest on it certainly, but they would have to pay the principal back at such time they were able to when their pay restarted from the government.”

For now it’s just Webster Bank, but Lamont is certain more banks will join in shortly as the state has guaranteed to back the loans.

Brian Krampovitis is the president of the Air Traffic Controller‘s Association, and he says they had loans ready for their membership before the shutdown even took place. He says his membership was hoping for access to unemployment.

“They don’t have any desire to take on any more debt at this time or hurt their credit scores or do anything that can hurt them in the future by taking on additional debt or loans.”

Ballpark estimates put the payroll about $5 million a pay cycle. While they have an idea, they still need to iron out the details of when, where and how people can apply for loans. They hope to have those details later this week.

Original: A bank in Connecticut says it will offer no-interest loans to any federal workers who are working and not being paid during the partial government shutdown.

Connecticut Gov. Ned Lamont on Tuesday announced the assistance program offered by Webster Bank. He said he hopes other banks offer similar programs.

The loans are to be repaid after the workers receive back pay.

Lamont said he was surprised to learn that about 1,200 essential federal workers in Connecticut who remain on the job without a paycheck are not eligible for unemployment benefits.

Related Content: No. of no-show airport security screeners soars in shutdown

Webster Bank President John Ciulla said details about how workers will apply and how soon they can receive the money are still being finalized.

Web Extra: Watch the full announcement from Gov. Lamont below

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