CPM Federal Credit Union in North Charleston, S.C., has joined the list of credit unions offering assistance to members who may suffer financial hardship from sequester budget cuts that take effect Friday.
For a limited time, CPM, which has 68,000 members and assets of $268 million, will offer members directly affected by job furloughs one-time only unsecured personal loans equal to one month's pay, or up to $2,000, at 3% APR, with no payments for the first 90 days.
Qualifying members must have direct deposit and can also receive help with loan modification or due-date extensions.
In addition, CPM members affected by job layoffs can make penalty-free withdrawals on any CDs they hold.
CPM also will offer its members free budget software and financial counseling.
Other credit unions have announced similar programs, should Congress let the sequester cuts go forward. Northwest Federal Credit Union in Herndon, Va., for instance, will provide loans up to $10,000 at zero-percent interest for any members who may be affected by government layoffs. Northwest, too, will waive early withdrawal penalties on CDs
Tobyhanna Federal Credit Union 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 Federal Credit Union in Woodbridge, Va., said it would offer low-interest emergency loans and penalty-free skipped loan payment options to furloughed members.
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