An Act To Clarify And Strengthen The Government Shutdown Loan Guarantee Program

This bill clarifies Maine's Government Shutdown Loan Guarantee Program, which provides short-term loans to state employees temporarily without pay during government shutdowns. It allows financial institutions to charge a small origination fee (up to $60 or 1% of the loan, added to the loan amount) and raises the trigger for stopping new loan approvals from 10% to 50% of total loan amounts paid out. The bill also requires the program to notify the legislature when $200,000 in payments have been made, prompting a review of funding needs. This directly affects state employees during shutdowns and the financial institutions offering these loans.