NE CUs Spared In Floods As Special Loans Made Available
Members have begun returning to their credit unions as flood waters recede throughout the Northeast, following the worst flooding in the region since the great flood of 1936.
At least one CU has responded with an emergency loan offer for members.
Dan Egan, president of the Massachusetts, New Hampshire and Rhode Island CU leagues, said a few credit unions near the swollen Merrimack and Salmon Falls Rivers had closed Monday, but are now open. The main problem has been that members are being blocked from their branches due to road closings or out-of-commission bridges. The real threat is if one of those dams break, Egan said.
Credit unions in Maine are operating, but some employees and local businesses have flooding in their basements, said Jon Paradise, a spokesperson for the Maine CU League, adding CUs can expect to see loan demand for repairs.
Meanwhile, in Portsmouth, N.H., Northeast Credit Union has put together flood relief package called "Relief Loan Program - Neighbors Helping Neighbors" to help homeowners and renters recover from flood damage to their homes and apartments.
"In many cases, our neighbors did not have flood insurance that will cover all of the damages sustained by the recent storm surges," said Peter Kavalauskas, CEO of NECU. "By reacting quickly, we are offering the Relief Loan Program to provide everyone in the community with another financial option while they may be waiting for government programs, private insurance or similar funding to rebuild their homes and their lives."
The Homeowner Relief Loan offers no payments for 90 days, a 5.9% APR for a loan amount up to $20,000 with repayment terms of 60 months, or a 6.9% APR with repayment terms of 84 months. The Renters Relief Loan offers no payments for 90 days, a 7.49% APR for a loan amount up to $5,000 with repayment terms of 60 months. Both are unsecured loans, and applications must be received by June 30, 2006.