ME LD874

Establishes the Government Shutdown Loan Guarantee Program to provide state-backed loans to Maine residents who are federal or state employees working without pay or furloughed during government shutdowns lasting longer than 7 consecutive days

Maximum loan amount is the lesser of $6,000 or the employee's most recent monthly after-tax pay, minus any unemployment benefits received; creditworthiness cannot be used to determine eligibility

Loans carry no interest during a grace period (90 days after disbursement or end of shutdown, whichever is later) and for 180 days thereafter, with full repayment required within 180 days after the grace period ends

Eligible employees may receive up to 3 loans during a single shutdown (one per 30-day period) and deferred interest is exempt from state taxes

Transfers $250,000 from the Bureau of Financial Institutions to fund the program, administered by the Finance Authority of Maine; loan guarantee claims cease if defaults reach 10% of total loans issued