When the federal government experiences a shutdown, the ripple effects can create uncertainty for many families and businesses. We want you to know that we’re here to support you through any challenges this situation may cause.
We’re Here to Help
If you are a federal employee, government contractor, or someone who relies on federal benefits, you may be wondering how a shutdown could affect your income or financial obligations. Please don’t wait—reach out to us. We can work with you to explore options such as:
- Waiving certain fees
- Extending payment deadlines
- Offering other temporary accommodations based on your situation
The most important step is letting us know if you need help. We can only take action once we understand what you’re facing.
Your Money Is Safe
A government shutdown does not impact the safety of your deposits or the daily operations of Androscoggin Bank. We remain open and fully functioning. Your FDIC-insured deposits are protected—just as they always have been. In the 90-year history of the FDIC, no one has ever lost a penny of insured deposits.
Possible Delays with Government-Backed Loans
While our bank is open for business, some federal programs could be slowed or temporarily unavailable during a shutdown. This may affect:
- Small Business Administration (SBA) loans – Applications may be delayed.
- Mortgage loans – IRS verification services and FHA or USDA approvals may be delayed.
- Flood insurance – The National Flood Insurance Program (NFIP) may pause new policies, though closings can often still proceed using private coverage or regulatory workarounds. Existing NFIP policyholders will continue to be covered, though claim payments could be delayed.
We’ll work with you to minimize disruptions and help keep your plans on track.
Frequently Asked Questions
Why do shutdowns happen?
Shutdowns occur when Congress does not pass funding bills for federal agencies in time. Agencies must then stop non-essential operations until funding resumes.
How long will it last?
There’s no set timeline. Past shutdowns have lasted anywhere from one day to more than a month.
Who is most affected?
- Federal employees, many of whom are furloughed without pay until the shutdown ends.
- Federal contractors, who often do not receive backpay.
- Families relying on federal services such as Head Start or WIC (Women, Infants, and Children).
- Travelers, who may experience delays at airports or in passport processing.
What continues to operate?
Essential services like Medicare, Medicaid, Social Security, veterans’ benefits, the U.S. Postal Service, and the IRS will remain open.
Staying Prepared
If you or your family are affected by a government shutdown, the best thing you can do is stay informed and proactive:
- Contact us early if you expect disruptions to your income.
- Review your budget and prioritize essential expenses.
- Monitor updates from federal agencies during the shutdown.
At Androscoggin Bank, our commitment is to stand with our clients through uncertain times—just as we have during past government shutdowns and other challenges.
If you’d like to talk through your specific situation, please contact us. We’re here to help.
* Material sourced from the American Bankers Association. To learn more, visit: https://www.aba.com/advocacy/community-programs/consumer-resources/managing-finances-amid-a-government-shutdown
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