LANSING, Mich. -
"We're still not really sure what's going to be happening," said Danielle Brehmer, senior communications consultant for NuUnion Credit Union, about the discussion of the possibility of state workers experiencing layoffs. The fields expected to be most impacted, Brehmer said, include: health, human services, and community health and corrections.
Almost 17%, which is about 15,000 members, of NuUnion Credit Union's members are state employees that can possibly be affected by the budget crisis, Brehmer said.
"State employees are the founders of our organization, and it's our privilege to be able to provide the financial assistant they may need during this uncertain time," said Stephan L. Winninger, NuUnion Credit Union's CEO, in a prepared statement. "We've developed a loan product specifically for their unique situation that we think should help relieve some of their financial concerns."
State employees, and others who may experience this same type of temporary income loss, may apply for up to $7,500 at a 4.9 fixed interest rate for up to a 48-month term.
"They can use it for what whatever they need it for, with an option to defer," Brehmer said.
The deferment option allows members to defer their first payment for 60 days. Additionally, NuUnion members with existing loans are eligible for two one-month loan extensions during the calendar year.
Brehmer said that the loan will be offered even if the state layoffs do not take place, as financial difficulties may still be a factor due to the budget crisis. "We have members in all sorts of situations," she said. "This will put control back into their hands."
Although it's still too new to gauge member feedback about the new loan, Brehmer is confident NuUnion CU's members will feel some relief from the offer.
"We haven't actually had anyone come in to apply for the loan yet, but we know they're saying 'I can count on my credit union,'" she said.
The loan is currently being "being built into your system," Brehmer said, but that doesn't mean there's a wait for it.
"If someone came in tomorrow, we'd be able to offer it to them," she said.
Brehmer said that although the new loan is not being designed as a way to attract new members, NuUnion CU has its doors open.
"If it works out like that, we'd be OK with that," she said. "But it is really designed to help our state workers. But we'd be happy to help them, as well."
Providing assistance to its members during rough times is nothing new for NuUnion CU. In the 1970s, when state employees also faced layoffs, NuUnion provided interest-free loans to help assist them and their families. And earlier this year, NuUnion committed more than $1 million in low-interest loans to help provide educational assistance to members needing job retraining due to company restructuring or downsizing.
