Pa. CUs Continue Millions in Loan Aid
For one, the $3.4 billion Pennsylvania State Employees CU in Harrisburg said it had already lent $12.5 million in no-interest loans to 12,500 eligible members at midweek under the CU's $1,000 PA Budget Impasse product.
There were at least 24 other CUs in the state, including those with large numbers of state employees, also offering 0% interest loans, skip-a-payments or other products to help out employees struggling with reduced or no paychecks over the last two weeks.
Lawmakers were scrambling with Gov. Edward Rendell to come up with emergency payroll legislation to forestall further state employee grief while new budget funding is sought.
Brad Grissinger, senior loan officer at the $165 million AmeriChoice FCU in Mechanicsburg, said since early July it had already extended 23 of its ABIL loans, which stands for AmeriChoice Budget Impasse Loans. The CU, with 15,000 members, also has approved 12 skip-a-payments to those requesting them.
Also, Lonny Maurer, president/CEO of the $310 million Belco Community CU in Harrisburg, said it had booked more than 130 of the no-interest loans so far.
"Many of our members are holding off until absolutely necessary before taking out the loans," observed Maurer, noting many are angry about conditions but are avoiding overextending themselves.