Loans for Furloughed Government Employees at Alpine Bank
Update: With the news that the federal government shutdown is resolved, we wanted to touch base and offer a couple of reminders regarding your furlough loan with Alpine Bank. February 15, 2019 marks the official end of the partial government shutdown.
As a result, February 19, 2019 marks the start of the six-month period during which you as an Alpine Bank furlough loan recipient can pay back the principal balance of your loan with 0% interest expense accrued and no pre-payment penalty.
The loan principal—the amount you borrowed—must be paid back by August 19, 2019 to avoid paying interest.
Should the principal payment not be received by the bank by this six-month deadline of August 19, 2019, the loan will convert to the standard rate for this ready reserve line of credit, currently eighteen percent (18%) APR. The interest will be calculated on the average daily balance and a minimum monthly payment of two percent (2%) of the amount owed, or ten dollars ($10.00), whichever is greater, will begin. Please disregard any billing notices received before August 19, 2019.
We know this has been a stressful time for you and your families, and we appreciate the opportunity to assist you in dealing with this emergency.
Please don’t hesitate to contact us with questions concerning your loan. All Alpine Bank branches will be closed Monday, February 18 in observance of President’s Day. You can reach yourAlpine Bank customer representative at a branch location near you or toll-free at 800-551-6098.
Original Blog Post – January 28, 2019
Alpine Bank is assisting furloughed federal government employees with loans to offer support in this time of uncertainty. These unique loans will be set up as ready reserve lines of credit, payment will not be due nor will any interest accrue for six months after the government shutdown ends. Borrowers may choose to pay the loan off during the 6-month period. The loan will be up to each borrower’s one-month net salary. We will enroll people in this program through the end of the business day, Monday, January 28.
“Our goal is to help folks in our communities who are struggling. As a community bank, we want to help our neighbors who are suffering because of something beyond their control, regardless of the cause.”
Glen Jammaron, Alpine Bank president
“In our 46 years of serving our customers, we have confirmed that the success of our bank is a reflection of the strength of the communities we serve. When our neighbors need our assistance, we will be there to help. This is the third time in the past 25 years that we have implemented this type of support to our valued federal employees. As always, we are honored to help.”
Bob Young, Alpine Bank founder and Chairman
Alpine Bank previously extended support to furloughed federal workers in 1995-96 and 2013.
Alpine Bank has set aside $5 million to provide these loans to be paid back once the shutdown has ended. To qualify, an applicant must be a government employee currently on unpaid leave due to the recent government shutdown, be able to supply third party verification of their monthly income, and a Colorado and federal ID. Furloughed government employees who are not already Alpine Bank customers can open a Liberty checking account with Alpine and then obtain this loan.
Here’s how the program will work:
The bank will lend up to one-month net salary, up to a maximum of $8,500, based on the production of documentation of income either a 2018 paystub, bank statement or year-end pay statement.
Employee will also need to furnish acceptable identification, both State and Government ID
The loan will be a Ready Reserve attached to a checking account. As such, recipients will need to open an Alpine Bank checking account if they do not have one in order to be eligible.
Payment terms will be 0% interest accrual and no payments due until 6 months after the shutdown has been concluded. The agreement will provide that principal balance will be due and payable on this 6-month date, BUT should such principal payment not be received then the Ready Reserve will simply convert to standard terms of eighteen percent (18%) calculated on the average daily balance and minimum monthly payments equal to two percent (2%) of the amount owed or ten dollars ($10.00) whichever is greater. This amount does include any finance charge that is owed.
Employees of federal contractors are not eligible for this program, but Alpine Bank will make best efforts to assist these customers.
Each of the bank’s 40 locations are ready to assist qualifying individuals in an effort to ease the loss of income currently affecting thousands of Colorado-based federal workers. The bank’s standard loan underwriting requirements will not be exercised for these loans.
To learn more, visit your nearest Alpine Bank branch.