South Bend-Based Bank Offering Shutdown Loans Created by kblakeslee on 10/10/2013 5:08:51 PM
SOUTH BEND, Ind. (AP) - A bank with branches across northern Indiana and southwestern Michigan is offering loans to furloughed federal employees and government contractors that aren't getting paid during the shutdown.
South Bend-based 1st Source Bank announced Thursday it will offer notes to clients who are furloughed from the federal government for amounts based on normal take-home pay for 60 days. It says the notes must be repaid when clients receive their back pay, or a payment schedule can be worked out if work weeks are completely lost. It will use recent paystubs for verification.
The bank also will lend money to businesses whose federal contracts are threatened or aren't getting paid for work.
The loans are available only to 1st Source customers, but individuals or businesses can become customers by opening direct-deposit accounts.