(This chart published by the Center for American
March 1, 2013 – Unless the president and congressional leaders reach a compromise, billions in automatic federal spending cuts are slated to begin being implemented today, and NAFCU is urging credit unions to be ready to help members facing furloughs, cuts in federal benefits and other impacts.
“We know that many of our members are already preparing for this worst-case scenario,” said NAFCU President and CEO Fred Becker. “NAFCU is also closely monitoring negotiations for signs of a compromise that could help delay or lessen the impact of large cuts in federal spending on credit union members.”
Several NAFCU member credit unions have already made preparations. Among them:
- Kennedy Space Center FCU (Merritt Island, Fla.) is offering a 0 percent loan to cover a federal employee’s loss of pay. Loans can be up to $3,000 and are to be repaid in 12 months.
- State Department FCU (Arlington, Va.) says it will assist members with existing loans. It is offering a special Visa credit card with a 0 percent annual percentage rate for the first six months.
- Northwest FCU (Herndon, Va.) is offering loans up to $10,000 at 0 percent interest. The credit union is also waiving the fee for early withdrawal on a share certificate.
- Congressional FCU (Washington) is offering a “furlough loan” of up to $3,000 with no interest.
Becker is encouraging members to share their preparations for helping members deal with the sequester as well as a potential government shutdown if stopgap funding ceases after March 27. The association is sharing information from its members with Hill offices, federal government agencies and servicemember organizations so their constituents can identify programs that may be helpful to them.
Send information on these preparations to Quincy Enoch, NAFCU’s associate director of legislative affairs and military liaison, at firstname.lastname@example.org.