COLUMBIA, Md.–With the federal government shutdown now in its second day, additional credit unions and associations have announced assistance for members.
In a statement, America’s Credit Unions President and CEO Jim Nussle said “this year’s government shutdown will be much more consequential” than what has happened in previous shutdowns.
With the shutdown and potential missed paychecks to be felt especially strongly in the Washington region, the MD|DC Credit Union Association said it is providing a Federal Government Shutdown Resource Center listing credit unions and the specific relief programs they are offering. The list will be continually updated as more credit unions provide information, the organization said.
It is encouraging members to reach out directly to their credit union to learn about eligibility and the options available, which may include:
• Short-term relief loans
• Low-rate credit cards
• Payment deferrals and loan forbearance
• Fee and penalty waivers
• Financial counseling
‘History of Stepping Up’
“Credit unions have a history of stepping up to serve their members in challenging times,” John Bratsakis, president/CEO of the MD|DC Credit Union Association, said in a statement. “We want members to know that credit unions are here with flexible options and solutions to help them through this federal government shutdown.”
Westerra Cares
In Colorado, Westerra Credit Union is offering the “Westerra Cares Government Relief Loan,” which has a six-month term at 0% APR.
The loan is available to existing Westerra members who provide proof of federal furlough in the form of a letter, along with a recent pay stub or direct deposit into a Westerra account.
“Our commitment to the community goes beyond banking,” said Anneliese Elrod, chief operations officer. “We are here to provide stability, resources and real solutions when our members need it most. Moments like this are a reminder of why local financial institutions matter.”
Westerra said it is also helping to connect people to various other resources, including:
• Mile High United Way
• Food Bank of the Rockies
• Colorado Pet Pantry
• Colorado Homeownership Coalition
California CU Offers Help
In Glendale, Calif., California Credit Union said it is offering special relief programs to support current members whose pay has been affected by the current government shutdown.
It said its programs include:
• Loan Payment Assistance: Members may skip a payment, with all fees waived, on their consumer auto loan and/or Signature Plus loan
• Penalty-Free Certificate Withdrawals: Members with certificate accounts may request early withdrawal to cover expenses with no fees or penalties
• Reduced Rate (APR) Signature Loans: Members may apply for a signature loan at a 4% lower rate than the current lowest rate offered by the credit union. Members may receive up to two times their most recent net paycheck, up to $3,000.
Working ‘Alongside Members’
“We understand the difficulties our members may face if they don’t receive their paychecks and we’re here to help. California Credit Union members can rest assured we will work alongside them with a variety of special assistance programs to help alleviate some of the financial stress this government shutdown may cause,” President/CEO Steve O’Connell said in a statement. “We encourage members who may be impacted to contact us with questions or concerns about their finances so we can assist them through this challenging time.”
Statement from America’s Credit Unions
“This year’s government shutdown will be much more consequential, as some government employees could lose their jobs,” said ACU President and CEO Jim Nussle in a statement. “For credit unions, this means they may have more members facing financial hardships and extended financial uncertainty. America’s Credit Unions is actively monitoring funding discussions and will analyze the impact of the RIFs when more details are released. We will continue to provide insights and resources to credit unions to help them effectively support their members.”
