Connecticut Governor Ned Lamont has secured a deal with Webster Bank and the Bankers Association of Connecticut to provide interest-free loans to hundreds of federal workers in the state affected by the government shutdown. He says they are not eligible to collect unemployment.
“I thought that was shocking. It’s due to a technicality out of Washington given the fact that they are not able to start looking for work. They can’t get paid because they are doing the work they are doing right now. So John at Webster Bank, we just started talking about this today. And I am so proud they were able to move quickly, and I’m hoping others will be able to move quickly so we can take care of these folks.”
Lamont says he brokered the deal with Webster Bank President John Ciulla and the Connecticut Bankers Association on Tuesday afternoon. This was after he heard that most of the 1,500 federal employees affected in Connecticut are not eligible to collect unemployment.
Many of the federal employees work for the Transportation Security Administration at Bradley Airport and for the Environmental Protection Agency. Webster Bank President Cuilla says they are working out the details of how the loans will be administered.
“But the key is the recipients of the loans will not pay interest on the loans, but we will make sure that the duration, term and repayment schedules allow them to repay once they are once again receiving.”
Ciulla is anticipating that Webster Bank will set aside about $5 million for the loans.
Lamont says Connecticut will guarantee the loans. He says he’s working out those details with the state legislature.
