Credit Union National Association (CUNA) officials said the organization is ensuring members affected by the government shutdown have access to low- or no-interest loans with generous repayment terms.
“Credit unions across the country are stepping up to help federal employees and families affected by the government shutdown,” Ryan Donovan, CUNA chief advocacy officer, said. “Relief programs offering low rates and deferred payments will aid members who are struggling to make ends meet. This is what we mean when we say that credit unions are people helping people.”
An estimated 800,000 federal employees and their families are facing financial uncertainty because they are not being paid during the shutdown, CUNA officials said.
The CUNA said furlough assistance programs include zero percent APR interest signature relief loan for 12 months signature relief loan; a Pay Disruption Assistance Program with mortgage loan forbearances, loan and credit card payment deferments, and short-term low rate loans; and online member portals with special furlough loans. The programs also include pre-existing loan deferred payment opportunities for up to 60 days; cash advances of up to 90 percent of federal employee’s regular monthly pay; and credit unions are helping federal employees who are not yet members have access to services by welcoming eligible members across the country.
Five federal financial regulators have urged financial institutions to work with borrowers affected by the federal government shutdown.