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Loans for furloughed employees

Find a list of banks and credit unions you may be able to turn to financial assistance.

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By

Anna Serio

Updated

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Key takeaways

  • Federal credit unions offer the best terms for furloughed workers, including zero-interest loans up to $10,000 (PenFed, Navy Federal) — though membership is often required before a shutdown begins.
  • Major banks like BofA, Chase, and Wells Fargo typically offer hardship assistance to existing customers — fee waivers, forbearance, and payment deferrals — rather than new loans.
  • Federal contractors face more restrictions than direct government employees; many furlough-specific programs exclude contractors entirely, leaving online lenders as the most accessible fallback.
  • Avoid TSP loans during extended furloughs: repayments automatically resume 60 days after issuance even if the furlough is still ongoing, creating repayment pressure before your income returns.
This summary was generated by AI and may contain errors or omissions.

Credit unions and banks have offered multiple assistance options for furloughed employees in the past. And if you already have a loan and are struggling to make your monthly repayments, many offer financial hardship assistance on a case-by-case basis.

Online lenders

While most online lenders don’t offer loans specifically for furloughed employees, you might still qualify. These lenders tend to be less strict than banks about credit requirements and can get you funds in as little as one business day. You also might be able borrow more than what banks or federal credit unions are offering furloughed employees.

You must have good credit to get a competitive rate, however. If you’re concerned about qualifying because of your furloughed status, call customer service to explain your situation — they might be willing to work out a loan that fits your situation. Some lenders like Marcus by Goldman Sachs are offering deferment for furloughed customers with current loans.

Competitive loan rates for all credit types

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Federal credit unions

Many federal credit unions have no- or low-interest loans for furloughed employees. But to qualify, you’ll need to join the credit union — and you might need to meet other requirements, such as living or working in a specific area or joining a particular organization. Many allow you to open a savings account online with a minimum $5 balance.

Federal credit union loans for furloughed employees

Credit unionMaximum loanTermAPREligibility requirementsOther assistance programsCustomer support
PenFed Credit UnionYour most recent direct deposit or $6,000, whichever is lowerTypically within your first pay period after the shutdown ends0% Federal employee on furloughSkip a payment on your current loan800-247-5626
ABNB Federal Credit UnionUp to $5,0002 months or whenever the government processes back pay — whichever is sooner0%
  • Member of ABNB FCU
  • Federal government employee or contractor affected by the shutdown
Skip a payment on your current loan757-523-5300
AgFed Credit UnionUp to $10,000Up to 60 days, option to amortize unpaid balance for longer period0% during 60 day terms
  • Member of AgFed Credit Union or willing to become one
  • Federal government employee or contractor with proof of furlough
Skip a payment on your current loan800-368-3552
Congressional Federal Credit UnionUp to $4,0003 years0% during the 60-day draw period, then 4% on the remaining balanceMember of Congressional FCU affected by the shutdown
  • Defer payments on new personal loans for up to 60 days
  • Increase the credit limit on your current line of credit
  • Defer payments on your current loans and credit cards
  • Penalties waived for early withdrawal from your CD
  • Free financial coaching
800-491-2328
Democracy Federal Credit UnionVaries6 monthsStarting at 0%
  • Member of Democracy FCU or willing to become one
  • Federal government employee affected by the shutdown
  • Deferred payments on your current loans for up to 90 days
  • Free financial counseling services
800-742-5582
Hanscom Federal Credit UnionVaries12 months0% for the first 60 days, then 9.49%Member of Hanscom FCU affected by the shutdown
  • Penalties waived for early withdrawal from your CD
  • Skip a payment on your current loans
800-656-4328
Justice Federal Credit UnionUp to one months net pay12 monthsStarting at 5.99%
  • Member of Justice FCU for at least 6 months
  • Department of Justice or Department of Homeland Security employee affected by the shutdown
  • Apply within 90 days of shutdown
  • Deferred payments on your current personal loans, auto loans and credit cards for 30 days
  • Mortgage assistance
800-550-5328
Lafayette Federal Credit Union$35,0003 yearsVaries
  • Member of Lafayette FCU for at least 30 days
  • Federal government employee affected by the shutdown
  • Enroll in autopay for your loan
  • Meet standard underwriting criteria
None800-888-6560
Launch Federal Credit UnionVaries1 year0%
  • Member of Launch FCU or willing to become one
  • Existing federal or contract employee affected by the shutdown
  • Pay verification and establish direct deposit into Launch FCU account
None800-662-5257
Navy Federal Credit Union$6,000Automatically deducted from your account when the government processes back pay0%
  • Member of Navy Federal Credit Union with direct deposit
  • Existing federal government employee or active-duty service member of the Coast Guard
  • Apply 1 day before or 3 days after your scheduled pay date
None888-842-6328
Space Coast Credit UnionUp to $5,0001 year0%
  • Member of SCCU with direct deposit set up prior to government shutdown
  • Federal government or civilian employee, government contractor with payroll received from federal government or military member
Withdraw up to $10,000 on your CD without an early withdrawal fee800-447-7228
Transportation Federal Credit Union$3,000Up to 18 months4.5%
  • Member of Transportation FCU or willing to become one
  • Existing federal government employee with proof of furlough
  • Skip a payment on your current loans
  • Free financial counseling
800-368-8432
US Employees Credit UnionYour last biweekly direct deposit rounded down to the nearest $1002 months or whenever the government processes back pay — whichever is sooner0%
  • Federal government employee affected by the shutdown
  • Member of USECU with an account in good standing
  • Direct deposit of government pay into a USECU account immediately before the shutdown
  • Skip a payment on your current loans
  • Penalties waived for early withdrawal from your share certificate — up to $5,000
312-922-5310

Banks

Some local and larger banks have assistance programs for furloughed employees. In addition to loans, you may be eligible for forbearance on existing mortgages, personal loans and credit cards. You might also find reversed overdraft fees, reduced or waived penalties for withdrawing from a CD early and other benefits.

Not all banks advertise these assistance programs, so call customer service to learn what options are available.

Banks that offer assistance for furloughed employees

BankAssistance offeredCustomer support line
Bank of AmericaFee refunds, waivers, repayment plans and loan modifications for current customers844-219-0690
ChaseFee waivers, loan payment relief, and general hardship assistance for affected customers, with support available by calling its dedicated hardship line and providing furlough details888-356-0023
Citi BankLoan modifications and fee adjustments, keeps government travel cards active without penalties during shutdowns, and encourages affected customers to call for personalized support800-374-9700
First Command Financial Services
  • 0% APR payroll advance for federal employees signed up for direct deposit into a First Command account.
  • Penalty-free early withdrawals on CDs.
  • Repayment assistance on loans.
  • Increased credit limit and deferred monthly payments on credit card accounts.
  • Low-interest lines of credit backed by a tax-free mutual fund.
  • Free financial counseling.
888-763-7600
Huntington BankHuntington Bank provides individualized support for furloughed federal employees during the shutdown, assessing each case separately and maintaining normal operations while assisting affected customers.888-697-4682
Provident BankDuring past shutdowns, Provident Bank refunded various fees and waived CD penalties for furloughed federal employees, and it continues to offer assistance based on individual circumstances during future shutdowns.800-448-7768
USAAUSAA’s Government Shutdown Program offers no-interest loans from $500 to $6,000 along with additional payment relief options for affected members.800-531-8722
Wells FargoFee waivers and short-term payment assistance on credit cards, loans, and mortgages, including options like forbearance and payment extensions.800-869-3557

TSP loans for employees on furlough

The Thrift Savings Plan (TSP) agency allows federal employees on furlough to withdraw from their TSP accounts without penalty if they believe they’ll be on furlough for less than 30 days.

But for a longer furlough period, a TSP loan might not be the best option. That’s because TSP automatically deducts repayments from your pay check 60 days after issuing the loan — even if you’re still furloughed.

Are federal contractors eligible for assistance?

Not always — especially if you’re applying for a loan. Some require you to be a full-time federal employee. Others might offer assistance to federal employees in a specific department. Check with your lender to make sure you’re eligible before you apply for any kind of assistance.

5 steps to protect your finances during furlough

These tips should help you keep your budget and credit score in check if you’ve been furloughed.

  1. Contact your creditors. While your provider might already know you’re a federal employee, it’s worth reaching out to explain your situation and learn about your options. A creditor might be willing to offer assistance even if they don’t advertise an assistance program.
  2. Talk to your landlord and utilities providers. You might learn they’re willing to accept a reduced or late payment in light of your situation. And the sooner you let them know, the better.
  3. File for unemployment. You might be eligible for unemployment benefits while you’re on a temporary leave of absence — which means you might not need that loan after all.
  4. Assess your budget. Knowing where you can cut back and where you need assistance can help you figure out the types of help or financing to focus on — if you need it at all.
  5. Consider a budgeting app. Apps can help you easily keep track of your spending so you don’t accidentally go over your furlough budget.

How long did the last government shutdown last?

The most recent government shutdown lasted 35 days. It ran from December 22, 2018 to January 25, 2019 and was the longest government shutdown in US history.

Bottom line

If you’ve been put on furlough, look to federal credit unions and online lenders for loans — and contact your banks to learn about assistance programs you could be eligible for. You can also read our guide to personal loans to learn about other borrowing options available.

Frequently asked questions

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Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio

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Anna has written 117 Finder guides across topics including:
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2 Responses

    Refilwe's avatar
    RefilweMarch 29, 2019

    Can you help me to pay my accounts?

      Joshua's avatarFinder
      JoshuaApril 1, 2019Finder

      Hi Refilwe,

      Thanks for getting in touch with Finder. I hope all is well with you.

      To help you pay your accounts, you might want to check the list of lenders listed above. There are credit unions, banks, and online lenders that you can choose from. You can also read more about their descriptions and determine if they are the right option for you. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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