Credit union service to members evolves as shutdown stretches on

The longer the federal government shutdown lasts, the greater the impact is on people without paychecks, with many still required to work. An estimated 700,000 federal workers are furloughed, with several hundred thousand more working without pay.

There’s a new state-by-state list of credit unions offering shutdown services on America’s Credit Unions’ Government Shutdown Assistance webpage. Policymakers and credit union members can see what services are available from credit unions in specific states, access league resource pages, and it also contains a link to NCUA’s credit union locator tool as well.  

The Illinois Credit Union League maintains a resource page for Illinois credit unions and members, including information on partnerships between credit unions and the Illinois State Treasurer’s Office through the Federal Workers Emergency Loan Program.

The Cornerstone League responded to a request from Rep. August Pfluger, R-Texas, providing him with information on what credit unions in Texas’s 11th Congressional District are providing. Heritage USA Federal Credit Union, headquartered in Midland, is offering skip-a-payment, loan modifications and extensions, waived and reduced fees, and personalized member support.

Peninsula Credit Union, based in Washington state’s Olympic Peninsula, contacted members early in the shutdown and deployed a comprehensive suite of emergency financial products, as detailed in America’s Credit Unions blog. Not only are the new products directly helping members, Peninsula has also pivoted to meet needs as they have evolved over the shutdown.

“Credit unions are built on the foundation of people helping people, and this comes directly down to that,” said Peninsula Credit Union Marketing Director Billy Thomas. “If someone were to walk through our doors and say that financially they needed help, we always try to get to yes.”

Brazos Star Credit Union in College Station, Texas, was founded by federal employees in the U.S. Department of Agriculture, Federal Bureau of Prisons, Social Security Administration, and U.S. Postal Service.  Its board unanimously approved the rollout of a Government Shutdown Bridge Loan for federal employees affected by the latest government shutdown, which can replace up to a month’s salary, with the first payment deferred for 45 days.

“We felt that it is imperative to reach out to our members to assist their families to alleviate their fears and frustrations of not being able to pay their monthly bills, mortgages and weekly grocery bills,” said Brazos Star Credit Union President/CEO Mary Beth Borroni.

Brazos Star has also set into motion fee-free loan extensions, temporary increases in lines of credit, and personalized loans to fit members’ needs.

Birmingham, Ala.-based AmFirst introduced a “Here When You Need Us Most: Special Relief Loan” to replace a member’s monthly salary with terms up to 12 months.

“At AmFirst, we know how disruptive a missed paycheck can be, especially for families whose budgets are already tight. That’s why we’re supporting our members impacted by the government shutdown with a special relief loan—offering a 1.75% APR for up to $5,000 or their net monthly pay. Our team has been reaching out directly through social media and email to ensure members know help is available,” AmFirst said in a statement. “We’ve seen an outpouring of gratitude and relief from those who needed immediate support. Being there for our members when they need us most is at the heart of what it means to be a part of a credit union.”