BISMARCK, N.D.–Credit unions in the Dakotas have weighed in how they have responded to the Paycheck Protection Program as well as on what is keeping them up at night.
Separately, Kentucky’s CUs have rolled out relief efforts in response to the coronavirus pandemic, while an emergency fund has been launched by one foundation and a challenge issued by another.
Dakotas Survey
In response to a survey conducted by the Credit Union Association of the Dakotas that asked members four key questions, the CUAD said its member CUs responded:
- Half of the 62% of its member CUs who participated indicated they are assisting members with SBA’s PPP at this time; 36% answered they were not set up to do so; and 29% indicated that they were willing to refer members to another credit union if they were unable to assist them.
- 95% of respondents indicated that reaction to the crisis business adjustments from members has been positive, with no one reporting any negative responses from changes such as lobbies closing, appointment only meetings, online services, etc. (Just 5% of survey participants did not answer.)
- According to the CUAD, members were split on what legislative or regulatory relief actions could be taken now that would help operations issues. Thirteen percent indicated that as essential businesses serving members during the crisis, their operations and employees have been impacted as well. “Some expressed that credit unions should be eligible to participate and apply for the SBA’s PPP grants. Another 13% indicated that mortgage related regulatory relief, particularly e-signature, would be helpful. Other answers dealt with easing of regulations including Reg D, eliminating CECL all together or pushing the implementation back even further, and delay of all exams, the CUAD said. Other issues shared were the elimination of required monthly board meetings (go to every other month) or allowing virtual meetings.
- What is keeping the leaders of CUAD CU members up at night? According to the association,the highest scoring worry in response to this question was the safety and welfare of staff.
“Think about it: What if a small credit union with limited staff and resources experienced a positive COVID-19 case and staff were forced to quarantine?” the CUAD said in its analysis of the findings. “How could they continue to serve members? Close behind was the economic impact for the unemployed, loan growth and income, the ability to continuing serving members, loan delinquencies, as well as fraud and the depth and lasting impact of the pandemic.”
The association said the information will be aggregated and shared with lawmakers, community leaders, as well as CUNA.
Kentucky’s CUs Step Up
In Kentucky, many of the state’s credit unions are offering programs to assist members through the coronavirus pandemic.
According to the Kentucky Credit Union League, various assistance available includes:
- 90-Day deferment on loan payments including mortgages
- Skip-a-Pay programs on auto and home loans and credit cards
- Access to equity on autos loans
- 90 Days no payment on new auto loans
- Waived fees for early CD withdrawals
- Waived fees on overdrafts and other services
- Lower interest rates on loans
- Emergency hardship loans
- Extended due dates on collections
In addition, one Kentucky credit union is offering an Employee Assistance Account where an employee can apply for emergency funds in the event the employee’s spouse is not working due to the pandemic, the league said.
“Credit unions across Kentucky are stepping up to serve the 900,000 plus credit union members across the Commonwealth,” said Debbie Painter, Kentucky Credit Union League president. “These are tough times, but credit unions remain strong, healthy and ready to serve their members and their communities. All deposits are federally insured and safe. Our credit unions are truly carrying out our ‘People Helping People’ philosophy.”
For more info: www.MoveKentuckyForward.com.
New Relief Fund in Maryland, DC
In Columbia, Md., the Credit Union Foundation of Maryland and the District of Columbia have created a new fund to help CU members affected by the coronavirus pandemic. The fund will provide one-time $500 grants to eligible members going through financial crisis. The Foundation is accepting contributions to the fund.
#CreditUnionsCareChallenge in 3 States
The League of Southeastern Credit Unions, which serves Florida, Georgia and Alabama, said the Southeastern Credit Union Foundation has launched a #CreditUnionsCareChallenge. The challenge asks credit unions to commit at least $25 per employee, which the employee will use to carry out a good deed in their community while supporting a local business of their choice. Employees are encouraged to follow all social distancing guidelines.
To double the impact, the SECUF has pledged to match every dollar contributed by member credit unions up to $25 per employee. The credit union will choose a local organization or charity to receive these matched funds as a donation, the LSCU said.
The SECUF’s contributions are made possible in part by donors that include CUNA Mutual Group and Corporate America Credit Union.
“Credit unions are integral parts of their local communities,” said Patrick La Pine, CEO for LSCU. “We’re excited to see what deeds employees carry out and local businesses they choose to support. This effort lines up perfectly with the credit union motto of People Helping People.”
The SECUF said it began the initiative to answer the challenge put forth by Tallahassee-based First Commerce Credit Union in its ambitious #LocalStrong campaign. The credit union utilized this initiative to distribute more than $4,000 among more than 150 team members to spend with local businesses.
“We were inspired by their campaign and the intent behind it, we felt compelled to do our part to broaden the initiative across the Southeast,” said Tina Williams Chair of the SECUF and CEO of Mobile Educators Credit Union. “Essentially, we’re shining a spotlight on two areas of need during this crisis – small businesses and local charities that are being inundated with requests for assistance. We’re eager to show how the Southeast is #CUStrong.”