The $1.1 billion Associated Credit Union in suburban Atlanta is among the latest to offer a loan product to federal employees should the government shut down Saturday.
The Norcross, Ga.-based credit union said it will offer a 0% interest loan if Congress and President Obama's administration are unable to agree on a budget deal.
Associated CU's Federal Furlough Relief Loan will provide federally employed members of its credit union with the amount of their last direct-deposited paycheck. This will provide a money stream while members are not receiving a government paycheck, the CU said.
Members will need to repay the amount of the loan within 30 days after the government restores normal payrolls. If the amount cannot be repaid at that time, Associated CU said it will turn the balance into a 12-month loan at 5.5%.
“Since 1930, our core membership base has been federal employees. We intend to stand shoulder to shoulder with our members if and when we are needed,” said Lin Hodges, the credit union's president/CEO.
Associated CU serves more than 151,000 members.
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