SACRAMENTO, Calif. – Eleven credit unions have made special offers to provide state employees with short-term credit, as the state is withholding $3.3 billion in payments to stem a gaping budget deficit.
The credit unions have pledged at least $22.4 million in lines of credit and other short-term borrowing solutions on a case-by-case basis to those affected by the state's cash crisis, according to state controller John Chiang.
The credit unions providing the largest amount of short-term funding are the Water and Power Community CU, offering $7.5 million to affected customers, followed by the First Entertainment CU and the Stanford FCU, each offering $5 million in funding. "Other banks and credit unions have indicated they will, to the extent possible, provide lines of credit and other short-term borrowing solutions on a case-by-case basis to those affected by the state's cash crisis," Chiang's office said.
Other credit unions offering help are: Alliance CU $250,000; American First CU $1,000,000;
Cal State L.A. CU $1,000,000; Central State CU $1,000,000; Firestone Financial Services CU $100,000; Health Associates FCU $300,000; SF Police CU $250,000 and Visterra CU $1 million.
