Credit unions launched relief loans as federal shutdown threatened member stability

Sixty-nine percent of credit unions responding to an America's Credit Unions survey launched new relief loan programs with reduced or zero-percent interest rates to help members manage missed paychecks during the federal shutdown. Tinker Federal Credit Union exemplifies this industry-wide response, having processed more than 3,200 assistance transactions and distributed over $1 million in zero-percent interest loans while expanding eligibility beyond its 480,000-member base to serve anyone affected by the crisis.

Credit unions nationwide responded to member needs with unprecedented financial relief programs during the federal government shutdown. According to an America's Credit Unions survey, 69% of credit unions who responded to the survey launched new relief loan programs featuring reduced or zero-percent interest rates, demonstrating the industry's commitment to helping members navigate the crisis.

Tinker Federal Credit Union stands among these institutions, having distributed over $1 million in zero-percent interest loans through approximately 350 individual loans. The $ 6.2 billion Oklahoma and Texas credit union serves a significant military and federal employee membership through its four branches on Tinker Air Force Base and locations throughout the state.

"We've had over 3,200 transactions of either refunding fees, doing skip-a-pays, or interest-only payments on loans," said Dave Willis, president and CEO. "To date, we are at about 350 zero-percent interest loans to the tune of over $1 million in payroll relief."

The scale of need became dramatically clear on the evening of November 6, when credit union staff arrived at a Turkey giveaway event in Oklahoma City to find a line stretching 6.5 blocks. The first person in line had been waiting since midnight to ensure her family would have food for Thanksgiving—a stark illustration of how the shutdown's impact extends beyond missed paychecks to basic necessities.

Proactive response draws on past experience

Willis and his team didn't wait for members to request help. The credit union established its shutdown assistance program during a previous government funding lapse, allowing staff to quickly revitalize and expand the offering when Congress failed to pass funding legislation on October 1.

The expanded program includes no-fee skip-a-payment opportunities, interest-only payment plans, fee refunds, and zero-percent interest loans for qualifying members. More significantly, the credit union opened eligibility beyond existing members to anyone affected by the shutdown.

"This year we made an exception where if someone is a non-member and has been affected, they can become a member and take advantage of this," explained Liz Castillo, assistant vice president and manager of marketing at Tinker Federal Credit Union.

Community impact extends beyond financial services

Recognizing that the shutdown's effects ripple far beyond missed paychecks, Tinker Federal Credit Union committed more than $30,000 in donations to food banks.

The credit union gave away approximately 300 frozen turkeys at the Oklahoma City event on November 6, with similar distributions planned for Tulsa. Between November 18 and 21, staff members will visit grocery stores in financially struggling communities to distribute $15,000 in gift cards, helping families purchase food for Thanksgiving.

"We've always done this during the holidays to go out and give out gift cards at the grocery stores and the Turkey giveaways," Willis said. "We just grew it this year, knowing that there was a lot of hardship going on right now."

On November 5, the credit union hosted free financial wellness workshops in Oklahoma City, offering two sessions to accommodate community demand. Representatives from Tinker Federal Credit Union's financial wellness, operations, lending, and member solutions teams provided personalized guidance on budgeting, prioritizing essentials, and avoiding high-interest loans. The workshops were open to everyone in the community, not just credit union members.

At the end of the first session, a member approached a presenter to express appreciation for the credit union's assistance programs. Her friend, who accompanied he,r wasn't a credit union member until the financial educator offered a $25 coupon to cover the friend's membership opening, allowing both to access the assistance programs.

Economic impact reaches beyond federal employees

Willis emphasized that the shutdown's financial consequences extend to subcontractors, small businesses, and restaurant owners who rely on federal employees as their customers. The credit union initially designed relief for a single missed paycheck but has expanded coverage to three pay periods as the shutdown continues.

"If I'm a restaurant outside Tinker Air Force Base, I'm not getting a whole lot of business right now," Willis said. "So even our small businesses are starting to struggle because they're not seeing the same traffic from government workers that have been coming there before."

The credit union's zero-percent interest loans carry minimal risk despite providing substantial financial relief. During the previous shutdown, Tinker Federal Credit Union issued more than 400 payroll relief loans with only one default. Some current borrowers have returned for second or third loans as the shutdown extends through multiple pay periods.

Personal stories highlight the widespread need

The human toll of the shutdown emerges in countless individual stories. Willis recounted hearing about air traffic controllers who want to return to work but lack money for gasoline. Castillo recalled an encounter during last year's grocery store gift card program when a woman broke down in tears of gratitude. Her husband had been hospitalized for two weeks, and she was buying snacks at Walmart because they couldn't afford the hospital food.

"When we're out, boots on the ground, literally impacting community members right then and there, that's super special," Castillo said.

Willis expressed frustration with the political stalemate that created the crisis. "We're very disappointed in our legislators on both sides of the aisle that they have not been swifter to take care of our individuals, especially the ones that are living paycheck to paycheck," he said. "We're charged to help them. We're here to serve the underserved. We're trying to do our part, but we're just one credit union."

Call to action for the industry

Willis challenged credit union professionals nationwide to recognize that the shutdown affects members in every institution, not just those serving military or federal employee fields of membership. Tinker Federal Credit Union has more than 4,000 employee groups in its field of membership, but its core remains the military community at Tinker Air Force Base and Vance Air Force Base in Northwest Oklahoma.

"You've got members that are federal employees in your credit union that are being impacted right now," Willis said. "You've got members within your credit union that are below the poverty level that are dependent upon federal aid to buy their groceries. Your members are being impacted. You probably have employees in your credit union that are being impacted by this."

Tinker Federal Credit Union continues to evaluate its response as the shutdown persists. The credit union offers free financial coaching to everyone through its member solutions team, which helps with budgeting, credit building, and financial planning.

The credit union's approach proves that being "a responsible citizen as a business" delivers both community benefit and institutional value.