An official website of the State of North Dakota
The Furloughed Federal Employee Relief Program (FFERP) assists North Dakota residents who are Department of Homeland Security employees.
It provides funds if they experience financial hardship due to not receiving a paycheck during a lapse in appropriations. Bank of North Dakota (BND) is partnering with local lenders to provide short-term, low-interest loans to eligible borrowers. Disbursements of the individual’s base net pay for up to six months will be provided unless the federal government reinstates pay before that time.
Click here to download the Furloughed Federal Employee Relief Program (FFERP) Fact Sheet (PDF).
Applications will be accepted from March 19, 2026, until federal pay is reinstated.
BND offers this program by partnering with local lenders in North Dakota. Please contact your local lender to initiate the loan application with BND. Local lenders must submit the Furloughed Federal Employee Relief Program (FFERP) application.
If you have any questions, contact us or call (701) 328-5795.
Furloughed Federal Employee Relief Program (FFERP) Application (PDF)
To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions. Click here for steps to complete a digital signature.
If you are not able to access a PDF, please contact us for assistance.
All of the following parameters must be met:
- Borrower must be a North Dakota resident who is impacted by a lapse in federal appropriations.
- Borrower must be a Department of Homeland Security employee.
- Eligibility extends to excepted and non-exempted (furloughed) employees.
- Due to the federal government shutdown, the borrower is not receiving a paycheck.
- Borrower is a current customer of the lead lender and has or will have their federal paycheck directly deposited with the financial institution. The lead lender must have at least one physical location in North Dakota.
- Borrower has not applied for, or will not apply for, any other government shutdown loan programs outside of Bank of North Dakota’s FFERP.
- Loan amount is limited to the equivalent of up to six months’ base net pay for the eligible borrower.
- Loan is a non-revolving line of credit structured to allow the borrower to draw funds in multiple advances that align with their regular pay schedule.
BND Interest Rate: Interest rate will be fixed at 2.00%.
Fees: BND will pay a one-time service fee to the lead lender of $250.00.
The loan is unsecured.
BND will purchase 100% of the loan.
- The maximum term is eight months.
- Loan will be structured as a non-revolving/closed-end line of credit with a maximum loan amount equal to six months’ base net pay. Borrowers will be eligible for multiple advances that align with their regular pay schedule. Loans will be available and disbursed only as long as the government fails to pay eligible borrowers.
- Although it is strongly encouraged to repay this loan in full when back pay is received, the loan will be structured as follows:
- Three equal, consecutive monthly installments of principal and interest, amortized over three months. The first payment date will be six months from whichever occurs first: the date of the first missed paycheck for which they are taking an advance or the date of the initial advance.
- The loan balance will not be reamortized over the repayment period should the full loan amount not be advanced, due to a potential repayment source being the borrower’s back pay, when it is received.
- Payments must be applied to interest first, then principal, and then any outstanding fees.
- Loan will not have a prepayment penalty.
- Loan will not have a default interest rate.
- Promissory note must include “Right of Setoff” verbiage.
- Two most recent paystubs
- Furloughed Federal Employee Relief Program (FFERP) application submitted by a local lender, which must have at least one physical location in North Dakota
- Furloughed Federal Employee Relief Program (FFERP) Loan Agreement, which will be provided to the local lender by BND when request is approved
Why is BND charging interest?
The requirement for a small interest charge is not BND or the State’s way of making money off the federal shutdown. Article 10, Section 18 of the North Dakota Constitution, commonly referred to as the anti-gifting clause, “prohibits the state from giving its credit or making donations to or in aid of any individual, association or corporation.” A zero-interest loan would violate the Constitution under this section.
This is the complete section for reference:
“Section 18. The state, any county or city may make internal improvements and may engage in any industry, enterprise or business, not prohibited by article XX of the constitution, but neither the state nor any political subdivision thereof shall otherwise loan or give its credit or make donations to or in aid of any individual,
association or corporation except for reasonable support of the poor, nor subscribe to or become the owner of capital stock in any association or corporation.”
Is there a maximum loan amount for the Furloughed Federal Employee Relief Program (FFERP)?
Yes, the maximum loan amount is equal to the borrower’s net bi-weekly base pay times 12, or six month’s base net pay.
When does repayment begin?
The loan shall be repaid in three equal consecutive monthly installments of principal and interest, amortized over three months. The first payment date will be six months from whichever occurs first: the date of the first missed paycheck for which they are taking an advance or the date of the initial advance.
If a borrower does not apply for a loan at the time of their first missed paycheck but applies later, for example, at the time of the second missed paycheck, can they receive advances for both the first and second missed paychecks?
Yes. If the borrower applies after the first missed paycheck, they may receive advances covering both the first and second missed paychecks; however, the maturity date then would be determined based off of the date of the first missed paycheck and not off of the date of the initial advance. The first payment is due six months from the date of the first missed paycheck in this situation.
If a borrower takes their first advance at the time of the second missed paycheck, are they still eligible for the full six months of advances?
Yes, they remain eligible for the full six months of missed paychecks based on the base net pay. The first payment date in this scenario will be six months from the date of the first advance, since they are only advancing for the amount of the current missed paycheck and are not requesting to advance funds from the previous missed paycheck.
What if both spouses in a married couple are federal employees?
If both spouses are federal employees, they may apply for one loan to cover the sum of both of their lost net pay, as long as they have the same pay dates and eligibility is met for both of them. If they do not have the same pay dates, they will need to apply for separate loans.
When can borrowers apply for the loan?
Applications will be accepted from March 19, 2026, until federal pay is reinstated.
What happens after an application is submitted to BND?
Bank of North Dakota (BND) will review the application in the order it is received. Once approved, BND will issue a commitment letter and Furloughed Federal Employee Relief Program (FFERP) Loan Agreement via email. After the commitment letter is received, your financial institution can prepare the loan documents, execute them with your borrower, and then submit them to BND per the instructions on the commitment letter.
When is the first advance available?
The first advance will be available on the date of the borrower’s first missed paycheck, as long as the government is still shut down on that date.
Does the borrower have to take the loan for the first missed paycheck?
No. If they do not apply prior to their first missed paycheck and the shutdown continues, they may apply later and receive an advance for their next missed paycheck.
My borrower’s most recent paystub includes overtime and bonus pay, will this be included in the maximum loan amount calculation?
No. The maximum loan amount is determined by base net pay, excluding any overtime or supplemental pay.
What analysis or due diligence is the lead lender required to do?
Bank of North Dakota (BND) will not require any analysis.
Should a credit bureau report be obtained for the applicant? If so, what is the minimum credit score required to be eligible for the program?
No, a credit bureau report is not necessary to be obtained on the applicant. There is not a minimum credit score requirement to access this program.
Can I charge an interest rate above 2.00% on the lead lender’s share of the loan?
No. Since BND will purchase 100% of the loan, the lead lender will have no exposure or share of it.
Is the $250.00 fee paid by the lead lender or the borrower?
Neither. The fee is paid by BND to the lead lender for servicing the loan. There are no fees charged by BND to the borrower.
Can the lead lender charge an origination fee, and can it be included in the loan amount?
Reasonable hard costs associated with documentation preparation may be assessed; however, origination fees should not be charged. Borrower fees may be included in the loan amount as long as it does not exceed the maximum loan amount the borrower is eligible for.
If our loan document preparation system defaults with a prepayment penalty or interest after default verbiage, do we have to update our specs to generate docs to adhere to this program?
No. BND will accept written confirmation from the lead lender stating that these provisions will not be enforced, even if they appear in the loan documentation.
Does the lead lender need to have a location in North Dakota?
Yes. The lead lender must have at least one physical location in North Dakota to be able to offer this program.
If the full loan amount is not advanced before the repayment period begins, can the actual amount advanced be re-amortized over the three-month repayment term?
No. Payments will not be re-amortized or adjusted if the full loan amount is not advanced. The program is designed to allow borrowers to repay the loan in three monthly installments if the shutdown remains in effect for the full six months.