Federal Workers Turn to Small Dollar Loans During the Shutdown

A beneficiary of the government shutdown are the small dollar lenders as more federal workers turn to them to make ends meet; these loans offer high interest rates and are often predatory in nature but they are attractive to many Americans who feel like they have no other alternative; but there are alternatives, many credit unions and community banks are offering interest free loans to government workers payable after the shutdown ends; there is also a bill before Congress to offer $6,000 no-interest loans to all federal employees affected by the shutdown. Source.

  • Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.

Sign up for our Newsletters

Every morning the Fintech Nexus News team scours the globe for the most important fintech stories of the day in the daily Global newsletter.

The Europe edition comes out on Monday, Wednesday, and Friday featuring the most important stories in European and UK fintech.

The Latin American newsletter arrives in your inbox on Tuesdays and Fridays. This is a trilingual newsletter featuring stories in Spanish, Portuguese, and English.

Join 20,000 subscribers!