Fed-friendly organization cuts off emergency loans in order to remain solvent.
The organization that has helped cash-strapped furloughed feds has run out of money.
The Federal Employee Education and Assistance Fund, which provides emergency no-interest loans, natural disaster grants and scholarships to needy federal workers, has stopped handing out new furlough loans to employees due to a “cash flow problem.” The nonprofit group has made more than 550 furlough-related loans since May 1, totaling more than $320,000. FEEA has provided more than $500,000 in total emergency loans to more than 800 feds since May.
“FEEA’s Board and staff are distraught by the necessity of suspending new furlough loans to federal employees,” FEEA Board President Robert Tobias said in a statement. “It is always our goal to be able to assist every fed, every time; however, financial circumstances compel us to take a different path at this time.”
Tobias stated he is optimistic new funding and sponsorships will “allow us to continue serving needy federal employees as sequestration continues and additional budget constraints threaten federal families.”
Employees who have recently submitted applications for furlough loans will receive an email from FEEA explaining the organization’s financial situation. FEEA will retain the applications in case its finances improve. The organization will continue to provide emergency loans to federal employees who meet FEEA’s general -- non furlough-induced -- guidelines for financial need.
FEEA, which has been around since 1986, has provided financial assistance to federal employees after several major natural disasters, including Hurricane Katrina in 2005, and after the Sept. 11, 2001, terrorist attacks and the 1995 bombing of the Alfred P. Murrah Federal Building in Oklahoma City.
Donations can be made to the organization via credit card on FEEA's website. Donations via check made out to “FEEA” may be sent to: FEEA Headquarters, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227.