Former federal employees who are experiencing hardship because they lost their jobs have a new source of financial assistance: an interest-free loan from Maryland.

The Federal Emergency Loan Program, announced Thursday by Gov. Wes Moore, makes a $700, interest-free loan available to Marylanders who lost their federal government jobs through mass layoffs, relocation, the shutdown of a part of the government or other extenuating circumstances.

“This is the latest chapter in our work to ensure our federal workers get the support they need, from building new pathways to careers in education to delivering essential resources to families in need,” Moore said in a statement. “As we continue to see chaos from Washington, Maryland continues to answer crisis with courage.”

Thousands of federal workers have lost jobs or been targeted for layoffs as part of the Trump administration’s efforts to downsize the government. In Maryland, about 1 in 10 workers is a federal employee.

Federal contractors are not eligible. A person who is working part-time but experiencing financial hardship remains eligible. The loan was created under the Protect Our Federal Workers Act, which Moore signed into law earlier this year.

The loan must be paid off within 180 days after an agreement is signed, though there is an optional 90-day extension available. If you’re going to apply for the loan, it must be within six months of when you lost your federal job.

Additionally, a person must be experiencing financial hardship, which the Maryland Department of Labor defines as “difficulty making on-time payments for a mortgage or rent, utilities, healthcare, childcare, a car loan or car insurance, credit cards or loans, or other household expenses.”

The application is online at mdol.submittable.com/submit. It requires documentation of Maryland residency and federal employment termination, and an “attestation” of financial hardship.

If approved, Marylanders who receive the loan will get a check in the mail, according to the Department of Labor. It can be paid back online.

If the loan is not paid back, it will be transferred to the State of Maryland’s Central Collections Unit, which imposes a 17% collections fee.

The Banner has been covering the ripple effects from big changes in the federal government in Maryland, and covering how the federal workforce is changing.

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