(Reuters) - PayPal Holdings Inc (NASDAQ:PYPL) said on Friday it will offer $25 million in interest-free credit to its users who work with the U.S. federal government and are impacted by the shutdown.
Employees who use PayPal Credit will be able to avail an advance of up to $500 each, without having to pay any interest, and the program will last until the government reopens and employees receive their first paycheck, the company said on its website
The partial shutdown, which hit the four-week mark on Friday, is the longest in U.S. history. The shutdown means 800,000 federal workers nationwide would continue to go unpaid and some government functions would remain impaired.
The shutdown also clouds the outlook for spending, retailers and the economy at large because executives and policymakers weigh not just the direct impact of 800,000 federal workers going without pay, but also how much it can hurt consumer and business confidence.
PayPal said it will take up to three business days to deposit the cash advance into user's accounts from the date the company verifies their employment.