Delaware News

Governor Carney Announces Loan Program for Federal Workers

Delaware State Housing Authority | Governor John Carney | Office of the Governor | Date Posted: Thursday, January 24, 2019


Loan Program for Federal Workers

Program would provide state-guaranteed, low-interest loans for workers going unpaid during shutdown

DOVER, Del. – Governor John Carney on Thursday announced a state-guaranteed, low-interest loan program to assist federal workers who are going unpaid during the federal government shutdown.

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 Governor 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.”

“This loan assistance will be a lifeline to federal workers, helping them make ends meet and supporting their day-to-day life while they continue to work without pay,” said House Majority Leader Valerie Longhurst. “This government shutdown has been egregious, and this is a small but important step to helping them meet their obligations and one less thing to worry about during this difficult time. I thank Governor Carney for persisting and finding a solution when things looked bleak.”

“This shutdown and the damage it is causing in Delaware justifies swift state action, ” said Senate Majority Whip Bryan Townsend. “I’m thankful that Governor Carney has acted with the urgency that this problem so clearly demands, I appreciate Representative Longhurst’s leadership on legislative efforts, and I sincerely hope that we can find a way to reopen the federal government as soon as possible.”

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.

“West End is once again pleased to participate in a public private partnership that allows Delawareans financial security,” said Paul Calistro, Executive Director of West End Neighborhood House.

“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.”

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View more resources for furloughed federal workers.

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Governor Carney Announces Loan Program for Federal Workers

Delaware State Housing Authority | Governor John Carney | Office of the Governor | Date Posted: Thursday, January 24, 2019


Loan Program for Federal Workers

Program would provide state-guaranteed, low-interest loans for workers going unpaid during shutdown

DOVER, Del. – Governor John Carney on Thursday announced a state-guaranteed, low-interest loan program to assist federal workers who are going unpaid during the federal government shutdown.

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 Governor 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.”

“This loan assistance will be a lifeline to federal workers, helping them make ends meet and supporting their day-to-day life while they continue to work without pay,” said House Majority Leader Valerie Longhurst. “This government shutdown has been egregious, and this is a small but important step to helping them meet their obligations and one less thing to worry about during this difficult time. I thank Governor Carney for persisting and finding a solution when things looked bleak.”

“This shutdown and the damage it is causing in Delaware justifies swift state action, ” said Senate Majority Whip Bryan Townsend. “I’m thankful that Governor Carney has acted with the urgency that this problem so clearly demands, I appreciate Representative Longhurst’s leadership on legislative efforts, and I sincerely hope that we can find a way to reopen the federal government as soon as possible.”

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.

“West End is once again pleased to participate in a public private partnership that allows Delawareans financial security,” said Paul Calistro, Executive Director of West End Neighborhood House.

“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.”

###

 

View more resources for furloughed federal workers.

image_printPrint

Related Topics:  , , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.