Coastland FCU Borrows $2M At 0% As Part Of LaCorp's Disaster Loan Program
Coastland FCU has borrowed $2-million at 0% APR from Louisiana Corporate's Disaster Loan Program to rebuild operations and restore liquidity following substantial withdrawals by members hit by hurricane Katrina. "We feel that as soon as the insurance companies start paying, our members will get money back into their accounts," said CFCU CEO Emmet Foxworth. Coastland FCU is attempting to return to its Metairie, La. offices and currently operating out of a back-up site in Houston. LaCorp, which is also homeless and operating out of U.S. Central's facilities in Kansas, is funding the disaster loans in part with deposits made by new associate members, including Arizona FCU, Atlantic Financial FCU, Electrus FCU, Hutchinson CU, Kinecta FCU, Market USA FCU, Money One FCU, Star One CU and Tyndall FCU, as well as CNBS. To date more the associate members have deposited more than $12 million.