Northwest Federal Credit Union in Herndon, Va., will provide loans up to $10,000 at zero-percent interest for any members who may be affected by layoffs resulting from the federal government sequester, scheduled to begin on Friday.
In addition, Northwest, with 126,000 members and $2.5 billion in assets, will waive early withdrawal penalties on CDs for members who may need immediate access to those funds.
Northwest also said it can offer counseling assistance to members who have fallen on hard times to help them manage their finances.
The loan-assistance move by Northwest follows similar actions at least two other credit unions. Tobyhanna FCU in Scranton, Pa., will offer furloughed members loans of up to $7,000 at no interest, and the option to skip up to four payments on existing loans without penalties.
Belvoir FCU in Woodbridge, Va., said it is offering low-interest emergency loans and penalty-free skipped loan payment options to furloughed members, should Congress fail to come to an agreement to stave off automatic budget cuts and government employee layoffs.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
