Employees in California are facing a gigantic pay cut as the spending budget has yet to be passed. California's governor has asked that all paychecks be cut to federal minimum wage until a spending budget is passed. Some banks and credit unions are offering a cash til payday loan to these employees, including no-interest installment payday loans.
Article source: California state employees offered low cost loan opportunities by Personal Money Store
The California pay cut
On July 1, the beginning of the fiscal year in California, no official budget had been passed. The State of California is going to be facing a $ 19.1 billion spending budget deficit if they don't pass a budget. Until the budget for California is passed, the governor has asked that all state employees have their wages reduced to the federal minimum. The reduction in pay, though, may or may not be possible because, as outlined by John Chaing, the system needs a significant overhaul.
Employee "impasse loans" offered to cover the gap
Bank of The United States and Wells Fargo have started offering no faxing payday loans called “budget impasse” products. The loans are fairly much offered without a credit check and no interest. State employees can get cash money or higher limits on their credit lines. When the state budget is passed, employees will be given a retroactive payment that they can use to pay back these impasse loans.
Qualifying for impasse loans
Employees who need to get a personal loan aren’t immediately qualifying for zero-interest loans from these banks. Instead, the state employees must already have an account with the bank or credit union. State employees have only seen a balanced budget passed on time in ten of the last thirty-four years – so it's not a surprise banks are ready.
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