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Comment by sremani | Hacker News Reader

If you got to any bank website at least the ones I bank with, there is a flashing notice on the front page, if I were a federal worker who needs assistance due to shut down. I am sure, certain workers have easy ways than others but to say that at least some banks have not stepped up is incorrect.

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Many are offering loans of 10%+ APR. That is helpful, but maybe not a great situation for many people that have no savings to need the loan.

Think of the boost to the economy we will get once these banks report their next quarter earnings!

/s, hopefully obvious

10%+ feels exploitative and predatory. The current fed interest rate is 2.5% - 4x above that is "let's profit on the unfortunate".

If it's short term, you end up paying less than 10% on it. If!

That's true, but the only way you'll be able to pay is if once things are rolling again you have that much extra cash. I don't know how tight people live.

Also, it's hard to structure that kind of loan, since you have no idea when repayment might take place. The only comparable thing would be a student loan, where you can defer payments until you have income.

Some banks may be giving out loans, but they aren't going to be for everyone. Not everyone is 100% guaranteed to be able to return to their job after the shutdown. Banks know that.

They are guaranteed backpay though, so that should work as collateral.

Not everyone is directly a Federal employee, there are tons of contractors and people who work for contractors who won't get back pay and aren't guaranteed anything.

You are giving credit where it isn't due. Are these loans conditional on a good credit score?

Just checked my bank website, you are right. Site does not go into specifics as to what the assistance is but optimally it is a bridge loan that can get implemented quickly.

These workers are still going to get hammered by late payments etc. and potential evictions but it is good to know at least something is being done.

I’m curious what the interest rate is. Because if you’re already tight enough to need a loan, the interest is gonna cut pretty deep, even if it’s a relatively low rate. My fear would be predatory terms targeted at a vulnerable group.

Any regular employer would be liable for incured damages because of breach of contract. Is that any different with the government as employer?

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