As the federal government shutdown continues, impacting federal employees across the nation, Hawai'i Community Lending (HCL) is taking proactive steps to assist those facing potential financial hardships. Recognizing the specific challenges faced by federal workers, HCL is offering forbearances to help prevent job loss leading to home loss. HCL Executive Director Jeff Gilbreath sent out a letter to borrowers, informing them about potential forbearance options, allowing them to temporarily pause loan payments. This measure aims to provide a financial lifeline to those affected by furloughs and layoffs.
This initiative reflects HCL's commitment to supporting families when they need assistance. According to a recent report, spectrumlocalnews.com, Senator Brian Schatz has introduced legislation to safeguard federal workers, contractors, and their families during such events, protecting them from evictions, foreclosures, and loan defaults. This aligns with HCL’s efforts to provide immediate relief.
Furthermore, the impact of the government shutdown extends beyond individual financial concerns. Hawaiicommunitylending.com highlights that the University of Hawaiʻi Economic Research Organization (UHERO) forecasts over 2,200 federal worker layoffs, with an additional 1,200 layoffs expected across Hawaii due to governmental downsizing and cuts to federal programs. This creates a compounded impact on local families already struggling with rising living costs. HCL's forbearance program is one of the options designed to mitigate these potential financial burdens. Alongside HCL, Hawaii Community Lending and Hawaiian Community Assets (HCA) are working to offer loan relief and financial counseling, providing a comprehensive support system.
This comes as Congress and the President fail to pass the required legislation. As stated in case.house.gov, the failure to reach an agreement has led to the federal government shutdown. This shutdown, as well as the subsequent funding cuts, has created significant challenges for many in Hawaii, making programs like the one offered by HCL even more critical.
