Furlough Loans Proliferate As CUs Gird For Looming Government Shutdown
WASHINGTON – Credit unions across the country are rolling out special loans and other assistance for needy members in the event the continued federal budget stalemate causes a government shutdown tonight.
If congressional leaders and President Obama do not reach a budget agreement, at least for the short-term, then some federal workers – those deemed non-essential – will be put on indefinite work furlough starting tomorrow.
Navy FCU is offering to front a week's pay for their members with direct deposit whose pay may be held up because of the shutdown.
Congressional FCU is offering staffers “furlough loans” of one month’s income up to $3,000 with no interest. Even if the government shuts down tonight, Congressional will continue its office hours at locations in Longworth, Rayburn and Ford congressional office buildings, as well as the Capitol. “Congressional Federal has been here since 1953 and we have proven experience helping our members financially navigate a furlough,” said Charles Mallon, president of the government credit union.
Justice FCU, which serves employees of and working with the U.S. Department of Justice, has introduced a 0%, 60-day Furlough Relief Loan and deferred payments on any existing consumer loans or credit cards that are carried with the credit union.
Department of Labor FCU is urging members to ensure they have made the credit union aware of their e-mail addresses, so that updates and other information can be provided. DOLFCU is offering a “Payroll Disruption Loan” of up to $3,000, based on net payroll deposit, with a 12-month term, including 0% interest for 60 days and 6% thereafter.
Library of Congress FCU is offering an “Unsecured Emergency Loan” with a maximum amount of $2,000, a 6.50% APR and terms to 12 months, with the first payment waived for 60 days. It also has provided updates on which facilities will remain open.
The Partnership FCU, which serves the FDIC among other groups, is offering a Furlough Loan with a 6% APR, up to an 18-month repayment period, and the first payment due 30 days after the government shutdown ends.
Cutler Dawson, Navy Federal’s president, said while the $44 billion credit union was hopeful leaders could avoid a shutdown, “At the same time, we want to support our members – especially our active duty military members – through this potentially challenging time. We want to ensure, to the extent possible, that our military families do not suffer financially in the wake of a political impasse.”
Atlanta’s Associated CU is offering a Federal Furlough Relief Loan to provide federally employed members with 30-day loans for the amount of their last direct-deposited paycheck at 0%. San Diego’s Cabrillo CU is offering a 0% furlough loan that will provide members employed by the federal government the net amount of their last paycheck to tide them over.