'Credit union difference' defined during shutdown
A Peninsula Credit Union member maintains accounts at two financial institutions: the credit union and a local bank. When the federal government shutdown began on October 1, the contrast in services was impossible to ignore.
The bank sent nothing. No message of support, no program announcements, no acknowledgment that thousands of customers might be struggling. Peninsula Credit Union, however, immediately contacted members with concrete assistance options and eliminated barriers to accessing emergency funds. This is what the credit union difference looks like when financial crisis meets cooperative principles.
Solution-oriented rapid response
The 2025 government shutdown has left more than 700,000 federal workers furloughed and several hundred thousand more working without pay. Federal employees began missing paychecks around October 10 to 14, with full paychecks at risk by October 24 to 28 if the impasse continues. For Peninsula Credit Union's 22,000 members on Washington's Olympic Peninsula, the institution's response came swiftly and deliberately.
"We sent out a letter via email from Jim (Morrell), our CEO, early on," explained Billy Thomas, marketing director at Peninsula Credit Union. "It went out to the entire membership, expressed support, and offered some of the options that we have." The universal outreach approach helped to eliminate stigma while ensuring help reached those who needed it most.
Programs designed for immediate relief
Peninsula deployed a comprehensive suite of emergency financial products, most notably the Emergency Paycheck Advance Loan, which staff refer to as the EPAL. The program provides furloughed workers with bridge financing at zero to 1% interest rates, structured around expected back pay once government funding resumes. The credit union eliminated fees on Visa cash advances and removed penalties for certificate withdrawals. Members can also access up to three skip-payment options per year, with Peninsula currently discussing expanding to four to offer continued support during an ongoing shutdown, according to Thomas.
Thomas shared one story playing out at credit unions across the country, "a couple who came in over the last two weeks, both work for the federal government. They had just paid off their car loan early and were so excited about that. And then they were furloughed unexpectedly."
The couple initially regretted eliminating that monthly payment, thinking they should have kept the cash in reserves. But Peninsula's near-zero interest emergency loans meant their early payoff decision remained financially sound.
The credit union's agility proved as important as its programs. When a member relationship consultant reported that members struggled to provide required furlough documentation, Darla Kolbas, Peninsula's lending director, acted. "Within about two hours, we changed all of those guidelines," Kolbas noted, "and it's much easier for folks to come in and say, here's my situation, I need help right now. So, we can help them before they even go out the door."
Cooperative roots meet operational readiness
This government shutdown marks neither Peninsula's first nor its second crisis response. "Unfortunately, this isn't the first time we have had a conversation about what we might do, because this isn't the first shutdown or potential shutdown that we've been through," Thomas explains. The credit union refined its approach over multiple government funding crises, modifying existing products rather than creating entirely new programs. Skip-payment features, share-secured loans, and cash advance options already existed in Peninsula's portfolio. The current shutdown simply required adapting eligibility requirements and eliminating cost barriers.
The philosophy underlying these adjustments traces directly to credit union founding principles. "Credit unions are built on the foundation of people helping people, and this comes directly down to that," Thomas emphasized. "If someone were to walk through our doors and say that financially they needed help, we always try to get to yes."
Measuring the mission in real time
Beyond the member who contrasted bank silence with credit union outreach, furloughed employees have expressed gratitude for both the programs and the proactive communication. As some members are waiting to see if a congressional resolution arrives before accessing emergency loans, they know they have a trusted and reliable partner in Peninsula Credit Union.
When federal employees need support, the difference between their credit union and their bank wasn't philosophical. It was practical, immediate, and measurable.
America's Credit Unions has a Government Shutdown Assistance webpage with resources and will continue to engage with Congress on getting funding restored.
