Treasurer Frerichs Partners with Financial Institutions to Help People During Budget Impasse
State Treasurer Michael Frerichs has partnered with financial institutions across the state to offer low interest loans to State of Illinois workers in the event that payroll is withheld as result of the state budget impasse.
In addition to encouraging financial institutions across the state to offer low-interest loans to workers impacted by the budget dispute, the Treasurer is offering access to capital to institutions that may otherwise not offer loans to workers in need.
The Illinois State Treasurer’s Emergency State Worker Linked Deposit Program is offering financial institutions access to capital to provide 0.0% APR loans to state workers for up to 50% of their gross pay.
Amounts and Terms for Financial Institutions:
- Loans shall not exceed 50% of the state worker’s gross salary,
- Individual state workers can apply for a loan every pay period.
If loans are not repaid within 30 days after reinstatement of State of Illinois payroll, state workers will pay up to 9.9% APR for up to a 1 year term.
Interest Rates:
- 0.0% APR will be in place until 31 days after payroll has been reinstated.
- Anything after the 0.0% APR period will pay up to 9.9% APR with a $100 minimum monthly payment.
How to Get Started:
- If you are a State Worker: you can find a financial institution that are offering low-interest rate loans by visiting the Illinois Credit Union League at www.iculeague.org.
- You must apply through the participating financial institution to secure a loan.
- You must comply will all the financial institution’s application processes and credit policies.
- Not all financial institutions will provide 0.0% interest loans.
For more information about the State Worker Emergency Linked-Deposit Program, please contact via email or call (217) 558-6217.
Financial institutions seeking to participate with the Illinois State Treasurer’s Emergency State Worker Linked Deposit please contact us via email or call (217) 558-6217.