The $175 million Cabrillo Credit Union of San Diego has begun offering a 0% interest loan to help federal government employees should the government be forced shut down by this weekend.
The furlough loan would provide credit union members employed by the federal government the net amount of their last paycheck to tide them over with a cash flow while not receiving a government paycheck.
“The furlough loan is available upon the official closure of the federal government,” said Cabrillo. The shutdown would start Saturday if Congress and the Obama administration are unable to agree on a budget deal.
Cabrillo said applications would be available in the branches and online.
“This is the second time Cabrillo has offered a loan to help federal government employees,” said Cabrillo. “The first time was in 1995, when the government shut down between Dec. 16, 1995-Jan. 6, 1996.”
“Not receiving your paycheck can be a source of uncertainty,” said Robin Lentz, Cabrillo CEO, “We want our members to know that we understand this situation and have a way to ease their burden. Because credit unions are not-for-profit and member owned, Cabrillo can be more flexible in this time of need. We are here to help in any way we can.”
Lentz noted that this isn’t the first time the credit union “has reached out to help the community. When fires ravaged San Diego in 2003 and 2007, the five-branch Cabrillo offered zero interest rate loans available for those affected. And, during the energy crunches of 2000 and in 2001, the credit union allowed its members to skip auto loan payments for the month of August in an effort to help offset soaring energy costs.”