A Thank You to Credit Unions for Standing by Members in Uncertain Times

By Jason Stverak

As our nation faces uncertain times – from economic disruptions like government shutdowns to natural disasters – one constant source of support shines through: our credit unions. Credit unions across the country are quietly and steadfastly helping their members weather these storms. 

This op-ed is a heartfelt thank you to the credit union industry for all they do to lift up individuals and communities when it matters most. While today’s headlines may highlight their role during a crisis, the truth is credit unions stand side by side with their members every day, through disasters in the community and personal struggles alike.

Helping Members Weather Government Shutdowns

When a government shutdown threatens the paychecks of military personnel and federal employees, credit unions have proven to be a financial lifeline. They have repeatedly stepped up with emergency loans and relief programs to bridge the gap for families facing missing pay. For example, many credit unions offer zero-interest paycheck advances and low- or no-interest emergency loans to affected members so they can cover essentials like groceries and rent. 

During the last major federal shutdown in 2018–2019, credit unions nationwide provided millions of dollars in relief, extending payment due dates for tens of thousands of members and even welcoming new members who turned to credit unions for help. These acts ensured that no one had to worry about feeding their family or paying bills due to political gridlock.

Credit unions prepare in advance to help those who serve our nation. “Credit unions have a long history of supporting military families during shutdowns, including interest-free advances, automatic payroll credits, and more,” notes Anthony Hernandez, CEO of the Defense Credit Union Council. In other words, even when government pay is delayed, many servicemembers find their credit union has proactively deposited a relief amount or waived their loan payments. This quick response can relieve an enormous burden. 

A Striking Contrast

It’s a striking contrast to profit-driven institutions – credit unions put their members’ well-being first, reflecting their core value of people helping people.

Typical relief measures credit unions employ during a shutdown include:\

• Zero-interest or low-interest emergency loans: Offering short-term loans to furloughed or unpaid workers so they can stay afloat.
• Deferred payments and skip-a-pay options: Allowing members to postpone loan or credit card payments without penalty during the crisis.
• Waived fees and charges: Proactively waiving ATM fees, late fees, or early withdrawal penalties so members aren’t punished for circumstances outside their control.
• Payroll advances and credits: Crediting military or federal employees’ accounts with funds equivalent to their paycheck, to be repaid once government funding resumes.
• Financial counseling and communication: Reaching out to members with guidance, budgeting help, and assurance that “we’re here to help you get through this,” reinforcing that no one is alone.

A Real Difference

These efforts make a real difference. They exemplify why, during uncertain times like a shutdown, credit union members can breathe a little easier knowing their institution has their back. It’s no exaggeration to say that thousands of families were able to avoid financial disaster in the 2018–19 shutdown thanks to credit unions’ rapid response. This history of stepping up in crises truly shows the best of the credit union mission in action.

Standing with Communities After Disasters

It’s not only political or economic crises where credit unions shine – they are also pillars of support when natural disasters strike. From hurricanes and wildfires to local floods, credit unions and their employees often are among the first to mobilize relief for affected communities. 

A powerful example comes from the devastating Northern California wildfires of 2017: Redwood Credit Union sprang into action by creating and managing a North Bay Fire Relief Fund that raised over $32 million in just four months. Redwood waived fees, offered emergency loans, and distributed donations directly to residents who lost their homes. In doing so, they put every available dollar toward helping people rebuild – a remarkable demonstration of community focus during a catastrophe.

Not an Isolated Case

Crucially, Redwood’s story is not an isolated case. Across the country, credit unions large and small have similar “people-first” responses in times of disaster. When wildfires raged in Washington State and Hawaii in 2024, for instance, credit unions were among the first responders. Through their regional foundation, credit unions helped raise nearly $45,000 to provide immediate relief after fires in Washington, and they supported national efforts for families displaced by the Lahaina fires in Hawaii. 

In the Spokane area, one credit union (STCU) provided direct aid to members affected by wildfires – distributing about $28,000 in gift cards to impacted members, setting up skip-a-payment programs, and funding emergency loans on the spot. 

In California, Patelco Credit Union’s disaster relief program similarly offered no- and low-cost loans, reimbursed ATM fees, and deferred loan payments for wildfire victims. Even credit unions whose own staff and branches were hit by the disaster still stepped up to help their neighbors – showing that this spirit of community care persists even under dire conditions.

What the Research Shows

The broader impact of credit unions’ disaster response is even backed by research. After Hurricane Katrina – one of the worst natural disasters in U.S. history – communities served by credit unions recovered faster economically than others. A study found that areas with a strong credit union presence saw better job growth following Katrina, thanks in part to the cooperation and support credit unions extended during the recovery. 

In many cases, when banks shut their doors or retreated after disasters, credit unions kept operating (sometimes on generator power or out of temporary trailers) just to ensure people could access cash, get loans, or even have a place to seek help. Whether it’s a wildfire on the West Coast, a hurricane on the Gulf Coast, or a local tragedy, credit unions rally to support their communities with both financial assistance and human compassion. They don’t wait for weeks of corporate approval or worry about profit-loss – they act because their neighbors are in need.

People Helping People: The Credit Union Difference

Why do credit unions consistently go above and beyond in these ways? It comes down to the core difference in their DNA. Credit unions are not-for-profit, member-owned financial cooperatives, meaning they exist solely to serve their members and communities – not to enrich stockholders.

This structure empowers credit unions to put people first, especially in times of crisis. The credit union philosophy is often summed up as “people helping people,” and we see that motto come alive whenever hardship strikes. In fact, credit union leaders often remind us that this is why credit unions were created.

For more than a century, credit unions have focused on those who might otherwise be overlooked by for-profit banks – everyday workers, military families, small business owners, and others seeking fair financial services. That historic mission, codified by Congress in the Federal Credit Union Act, set the stage for the compassionate, community-first approach credit unions take today.

Impressive Scale

The scale of the credit union movement’s impact is impressive. More than 140-million Americans are credit union members, trusting these institutions with their financial hopes and worries. Yet credit unions collectively hold only a modest share of the nation’s financial assets, meaning they aren’t the biggest players on Wall Street – but they deliver outsized benefits. 

Every year, credit unions return value to their members in the form of better rates, lower fees, and community programs, amounting to billions of dollars in direct financial benefits. Those benefits become critical in tough times: instead of hoarding profits, credit unions use their resources to keep a family in their home, help a single parent avoid bankruptcy, or rebuild a town after a disaster. 

This is the heart of the credit union difference. It’s not charity – it’s solidarity. As one credit union advocate put it, “this history of stepping in demonstrates the credit union philosophy of ‘people helping people’ in action. It’s in our DNA to go above and beyond to keep our members’ financial well-being intact, regardless of external circumstances.”

Present in Everyday Life

That philosophy doesn’t just appear during headline-grabbing crises; it’s present in everyday life. We see it when a credit union officer personally calls a member who lost their job to offer help restructuring their loan. We see it when credit unions voluntarily create skip-a-payment programs during a community hardship (as happened nationwide during the COVID-19 pandemic) so families can focus on health and safety rather than bills. We see it in financial education seminars, credit unions’ scholarships, and the friendly smiles at the local branch – small things that all add up to a big difference. 

Simply put, credit unions focus on people over profit every day, and that ethos pays off when people need it most.

Standing Side by Side, Every Day

In moments of crisis, and in the quieter struggles of day-to-day life, credit unions are standing side by side with their members. They share in the community’s burdens and work tirelessly to find solutions. From stepping up during a government shutdown to offering a hand after a natural disaster, credit unions never forget that their mission is to serve. 

On behalf of the millions who have been helped – and all of us who benefit from living in stronger, more caring communities because of this – thank you, credit unions. Thank you to the dedicated credit union employees who will stay late to approve an emergency loan for a family in need. Thank you to the credit union leaders who choose compassion over profit, and to the boards who remember that supporting members is the ultimate goal. Your work does not go unnoticed.

More Than a Slogan

In uncertain times, you remind us what stability and community really mean. The credit union movement proves that “people helping people” is far more than a slogan – it’s a daily commitment to doing right by neighbors and nation. For that, we are grateful. 

Credit unions truly stand shoulder to shoulder with their members every single day, and we, the general public, stand with you in appreciation for all you do to help build financial resilience and hope, no matter what challenges come our way.

Jaason Stverak is chief advocacy officer with the Defense Credit Union Council.