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The Furloughed Federal Employee Relief Program assists both North Dakota residents who are federal government employees and members of the armed services stationed in North Dakota. It provides funds if they experience financial hardship due to the federal government shutdown on October 1, 2025. 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 three months will be provided unless the federal government reinstates pay before that time. The loan program will not be available after federal government pay is reinstated. Click here to download the Furloughed Federal Employee Relief Program (FFERP) Fact Sheet.

Applications will be accepted October 10, 2025, through January 2, 2026, or until the federal government shutdown ends, as determined by the Office of Personnel Management (OPM), whichever occurs first.

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) – Available on October 10, 2025.

To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions.

If you are not able to access a PDF, please contact us for assistance.

All of the following parameters must be met:

  • The borrower must be a North Dakota resident or a member of the armed services  stationed in North Dakota who is impacted by the current federal government shutdown.
  • Borrower must be a federal employee, a member of the armed services stationed in North Dakota, or an individual employed as a federal government contractor who is paid directly by the federal government and will resume work with it.
    • Eligibility extends to both excepted and non-excepted employees.
  • Due to the federal government shutdown, the borrower is not receiving a paycheck.
  • The 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.
  • The loan amount is limited to the equivalent of up to three months’ base net pay for the eligible borrower.
  • The 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 five months.
  • Loan will be structured as a non-revolving/closed-end line of credit with a maximum loan amount equal to three 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.
  • The loan shall be repaid in three equal consecutive monthly installments of principal and interest, amortized over three months, with the first installment due three (3) months after the initial advance date.
  • 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.
  • Most recent paystub
  • Furloughed Federal Employee Relief Program (FFERP) application submitted by a local lender, which must have at least one physical location in North Dakota  

Is there a maximum loan amount for the Furloughed Federal Employee Relief Program (FFERP)?

  • Civilian Federal Employees: The maximum loan amount is equal to the borrower’s net bi-weekly base pay times six (6).
  • Armed service members stationed in North Dakota: The maximum loan amount is equal to the borrower’s net monthly base pay times three (3) or if borrower is paid semi-monthly, the maximum loan amount is equal to their net semi-monthly base pay times six (6).

What pay periods does this program cover?

  • As long as the shutdown continues, the program is designed to cover the following pay dates:
Civilian Federal EmployeesArmed service members stationed in North Dakota
October 24, 2025October 15, 2025
November 7, 2025October 31, 2025
November 21, 2025November 14, 2025
December 5, 2025December 1, 2025
December 19, 2025December 15, 2025
January 2, 2026December 31, 2025

When does repayment begin?

  • Repayment begins three months after the first advance. Example: If your first advance is on October 24, 2025, repayment will begin on January 24, 2026.

What if a married couple are both federal employees?

  • If a married couple are both federal employees, they are allowed to apply for one loan for the sum of both of their lost net pay, as long as both of them 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 October 10, 2025 through January 2, 2026, or until the federal government shutdown ends, as determined by the Office of Personnel Management (OPM), whichever occurs first.

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 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.

Is this loan available to service members who are in drilling status?

  • Yes. If a borrower attends a military drill and does not receive their drill pay because of the shutdown, they are eligible to apply. They must provide a copy of their Leave and Earnings Statement (LES) from the previous drill. They are eligible for the base net pay from their most recent drill.

What analysis or due diligence is the lead lender required to do?

  • Bank of North Dakota (BND) will not require any analysis to be submitted. BND is reliant on the lead lender to determine if there is reasonable assurance the loan can be repaid. The extent of analysis and due diligence by the lead lender should be in accordance with its internal requirements for originating a loan.

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.