COLORADO SPRINGS, Colo.–Numerous credit unions are announcing emergency loans and assistance to members affected by the coronavirus pandemic, including Ent Credit Union, which has cut its overdraft/NSF fee to just a penny. Another CU is giving each of its employees $1,000.
Numerous other CUs have announced branch changes, while many states have made announcements affecting credit unions’ loans. Those are outlined below.
“Until further notice, we are suspending or drastically reducing fees,” said Chad Graves, Ent CEO. “This includes eliminating fees for excessive transactions for savings and money market accounts, minimum account balances, Skip-A-Pay and credit card usage for loan payments. Our overdraft/non-sufficient funds fees are now just $0.01. And we are also waiving early CD withdrawal fees to help members access their money for immediate needs.
“We are also temporarily eliminating limits for the number of transfers from savings and money market accounts,” Graves stated.
Ent said it is encouraging members who are now without income and struggling to make their mortgage payment to reach out for help. Members won’t be charged late fees or have their credit impacted due to slow payment during this crisis, the CU said.
“They just need to talk to us. We’re here to help,” Graves stated.
Other assistance from Ent includes:
- Ent is offering members long- and short-term emergency loans of $1,500 to $10,000 with a 0.00% to 5.99% APR
- To help keep Colorado businesses strong, Ent said it is also offering emergency business loans, doubling its business line of credit limit (up to $50,000) and offering assistance programs to corporate banking members.
“I’ve said it before, but as this pandemic progresses, I feel it’s worth repeating. At times like these, I am especially thankful we are a not-for-profit financial institution,” Graves said. “This allows us the flexibility to do what is in everyone’s best interest – rather than what’s best for the bottom line.”
Other Offers & Responses
$1,000 for Employees, Emergency Loans for Members
In Anaheim, Calif., Credit Union of Southern California (CU SoCal) is giving every employee $1,000. The benefit extends to all employees regardless of length of employment and includes temporary workers, CU SoCal said. “This is an unprecedented time that demands extraordinary action,” said CEO Dave Gunderson. “Disruptions from Coronavirus are causing financial strain for our employees and their families. We wanted to provide help early on to help ease some of these burdens. In my more than two decades with CU SoCal, we have not laid off a team member. We remain passionate about continuing that tradition. However, the spouses and adult children of some CU SoCal team members are beginning to experience reduction in work hours at their jobs, and it’s likely that some households will experience layoffs in the near future due to the dramatic decline in business activity,” Gunderson added.
A week prior to Congress passing the Families First Coronavirus Response Act, CU SoCal announced to employees that it would provide 80 hours of paid sick leave for employees dealing with Coronavirus.
“The credit union’s paid sick leave criteria will now mirror the Families First Coronavirus Response Act” said Gunderson.
He added that CU SoCal will also allow employees to go negative up to 80 hours in personal time off (PTO) after exhausting their PTO balance.
CU SoCal also announced:
- To bolster their personal cash flow, members have the option of skipping payments on all consumer loans for 60 days. Interest will continue to accrue.
- Eligible members from its Preferred Partner employer groups are pre-qualified for a $1,500 loan with a 9.99% APR and can defer payments for 90 days—with just a signature and no credit check. CU SoCal said it is contacting its Preferred Partners to let them know their employees are eligible for the loan.
- Member households may apply for a Coronavirus (COVID-19) Emergency Loan of up to $10,000 per household. A signature loan that carries a fixed rate of 3.25 percent APR for a term of up to five years, the Coronavirus (COVID-19) Emergency Loan also offers a deferred payment of 90 days.
- CU SoCal personnel are also making outbound calls to the credit union’s senior citizen members for wellness checks and to help them obtain groceries and other household essentials.
Nassau Financial FCU Launches Emergency Assistance Program
In Westbury, N.Y., Nassau Financial FCU has launched an Emergency Assistance Program to assist members affected financially by COVID-19. “With this Assistance Program, Members of Nassau Financial will have the opportunity to manage their finances by skipping personal loan or auto loan payments up to 90 days, withdrawing funds from Certificate Accounts without penalty, or applying for a personal loan up to $5,000 with payments deferred up to 90 days,” the credit union said.
“Providing this Emergency Assistance Program demonstrates our commitment to making a difference by offering support to our members when it matters most,” said John T. DeCelle, P[resident and CEO of Nassau Financial. “As a credit union that strives to build long-lasting community efforts and improve upon the financial well-being of each of our members, we want to continue to assist in every way possible.”
Branch Changes
- In Jacksonville, Fla., Jax Federal Credit Union said it has closed its branch lobbies and directed members to use its drive-throughs. Situations requiring lobby service will be handled on a case-by-case basis; private appointments will be set when necessary. “Since 1935, our credit union has supported its members in the Northeast Florida community through numerous challenges. These changes will allow us to maintain continuity in access and service, while creating a safe environment for our members and employees,” said Mary Svoboda, Interim president and CEO of Jax Federal Credit Union.
- In Sumter, S.C., SAFE FCU said its 17 branches have closed their lobbies and is offering drive-through and ATM service only. The credit union has extended the hours its drive-throughs are open. “We made the decision to temporarily close our branch lobbies to help protect our members and employees during this difficult time,” said Darrell Merkel, SAFE’s President and CEO.
- In Jackson, Mich., American 1 Credit Union President/CEO Martha Fuerstenau the CU’s operating hours will be reduced to 9 a.m.–1 p.m. Monday through Saturday. Lobbies are closed, but drive-throughs remain open. “Up until this point, we have done our best to keep as many locations open as possible to provide continued service to members, while still keeping a safe and healthy space for employees,” stated Fuerstenau in the email. “Unfortunately we've reached the point where we can no longer balance those things.”
American 1 said currently operating at about 40% of regular staffing due to COVID-19, and it reduced its hours out of necessity to keep staff healthy and prevent burnout. “The new operating hours were chosen to line up with the hours of some local grocery stores in hopes people who are running errands will complete their banking at the same time,” American 1 said.
Emergency Order in Texas
In Texas, Gov. Greg Abbott has issued a State of Disaster declaration, followed by a statement from John Kolhoff, who issued a declaration to recognize the emergency impacting all counties in Texas as a result of the COVID-19 virus. With the issuance of the declaration, and in pursuance of TAC §91.5001, Texas state-chartered credit unions are authorized to place branches under emergency closure in excess of three days, so long as the closure relates to the COVID-19 epidemic. The declaration specifies that while Department approval of individual branch closures will not be necessary under the declaration, credit unions must provide notification to the Department. Credit unions were also reminded to update the NCUA CU Online Profile application to appropriately reflect the hours and status of each branch.
NAFCU Organizing Cleaning Supplies
In Arlington, Va., NAFCU said it is working to facilitate a network of connect credit unions to connect those that have a surplus of cleaning and sanitizing products with those seeking such products. Credit unions who have excess products that could be shared – or have recommendations for suppliers – are encouraged to reach out to NAFCU. In addition, NAFCU has a webpage dedicated to coronavirus resources.
CUs Remain Open in Pennsylvania
In Pennsylvania, Gov. Tom Wolf has issued an order that all “non-life-sustaining” businesses in the state must close their physical locations to help slow the spread of COVID 19. But the order includes a special exemption for certain businesses, including credit unions.
New Jersey Latest to Put Moratorium on Evictions
In New Jersey, Gov. Phil Murphy has announced an Administrative Order mandating the indefinite closure of all personal care businesses that cannot comply with social distancing guidelines, including barber shops, hair salons, spas, nail and eyelash salons, tattoo parlors, among others, and all social clubs as part of the state’s effort to combat the spread of COVID-19. Credit unions are not covered by the order.
Also in New Jersey, the governor has signed legislation that puts a temporary moratorium on evictions during a public health or other state of emergency. The new law (A3859) provides that, whenever a public health emergency or a state of emergency is declared by the governor and is in effect, the governor may issue an executive order to declare that a lessee, tenant, homeowner or any other person shall not be removed from a residential property as the result of an eviction or foreclosure proceeding. The executive order is to remain in effect for no longer than two months following the end of the public health emergency or state of emergency. The law permits eviction and foreclosure proceedings to be initiated or continued during the time of the executive order, but all judgments for possession, warrants of removal, writs of possession, and other grants of authority to remove individuals from their homes would be stayed.
Financial Planners Offer Free Assistance
‘In Denver, the Financial Planning Association said it has recruited members to provide free, no-strings-attached financial guidance to Americans who don’t typically have access to financial planning services. “Since the turn of the century, FPA and its partners have been committed to connecting thousands of Americans to our members who provide pro bono financial planning advice,” says FPA Executive Director/CEO Lauren M. Schadle, CAE. “As many underserved individuals and families are experiencing economic hardship due to the coronavirus outbreak, I’m pleased FPA is able to ramp up pro bono financial planning efforts to serve those most in need through the dedication and passion of our outstanding members. In these unprecedented times, FPA aims to help vulnerable populations gain hope and stability and come out stronger than before.”
Those interested are encouraged to visit www.OneFPA.org/ProBonoPlanning.
More Joint Statements from Banks, CUs
In several more states, credit union and bank trade associations have issued joint statements offering reassurances to consumers that financial institutions remain safe places to keep savings. The latest states in which such statements have been issued include Pennsylvania, New Hampshire and Ohio.