CUs assisting members as government shuts down
The federal government shut down starting Saturday morning as legislators did not come to an agreement on funding issues and federal agencies have discontinued nonessential operations, and it remains closed as of Monday morning. Since it is not funded through the appropriations process, the NCUA will continue to operate during the shutdown.
Negotiations between legislators are expected to resume mid-day Monday.
“This shutdown does not appear to materially impact credit union operations at our two primary regulators. In fact, NCUA said it will remain open and the CFPB is as well," said CUNA Chief Advocacy Officer Ryan Donovan. "We are actively engaged with our supporters on Capitol Hill and elsewhere and monitoring this fast-moving situation. We will provide real-time updates in the morning and throughout the week as this critical situation unfolds.”
As always, credit unions serving government employees stand prepared to assist members in the event of a government shutdown tomorrow.
"As credit unions throughout the country turn to assisting members affected by the government shutdown, please share your stories with CUNA," said Jim Nussle, CUNA president/CEO.
Hanscom FCU is prepared with its LifeLine Loan, with a 0.0% annual percentage rate (APR) for the first 60 days with no payments required. After that, the loan will be converted for repayments over a 12-month term to a fixed rate APR of 8.49%.
Hanscom FCU will also wave certificate of deposit fees for federal employees making withdrawals in the event of a shutdown.
“We are always ready with this type of relief in the event of these kind of events,” said MaryJo Kurtz, Hanscom’s director of communications. “As any deadline approaches we make any needed updates and are prepared to help in any way we can.”
Government Printing Office Employee FCU, Washington, D.C., has a preparedness plan in place similar to the one it put together for the U.S. Government shutdown of 2013.
The credit union will offer members a bridge loan of up to $3,000, based on the amount of their federal direct deposit with a 0% interest rate. Repayment is based on the members’ government reimbursement when business resumes.
“At the Government Printing Office FCU, we stand ready to assist our members in the event of a government shutdown,” said President/CEO Tim Anderson. “During the last shutdown in 2013, we recognized the financial hardship this would have on our members, and we provided short term loans to bridge them over. At GPOFCU, we live the credit union motto of ‘people helping people.’”