RANTOUL, Ill.—With state employees in the Land of Lincoln once again facing the possibility of delayed paychecks due to a budget impasse in the state government and other issues, Credit Union 1 is offering a special loan to tide them over.
The $770-million CU introduced its Employee Loan Assistance Program—designed to provide payroll gap assistance for members facing the threat of a missed or delayed paycheck—in 1995 and was used by state employees for the first time in June of 2007.
LAP charges 0% APR interest during the assistance period, Capitol Fax reported. LAP loans cannot exceed 50% of the member’s gross salary that has been delayed. The interest rate remains at 0% during the assistance period, after which the rate becomes 9.90%. Members have 30 calendar days to repay the entire balance owed. If the entire balance is not paid within 30 days, the entire balance owed converts to a repayment term up to 48 months and requires a minimum monthly payment of $100.