Through its Life Line Loan, Hanscom Federal Credit Union said it is ready to assist members who are federal employees with financial hardships brought on by the sequestration.
The interest-free loan went into effect on March 1, which was the same day that sequester cuts kicked in. The cuts are approximately $85.4 billion in reductions in federal spending that are expected to impact defense spending, federal employees and other areas.
Headquartered at Hanscom Air Force Base in Massachusetts, the $1 billion credit union serves 48,515 members nationwide and overseas.
Hanscom FCU said members will have access to a 0% annual percentage rate interest line of credit for 30 days, equal to one month’s net payroll up to $5,000.
Hanscom FCU said the Life Line loan is attached to a credit union member’s checking account to provide additional funds to cover checks, ATM withdrawals, and debit card purchases.
In addition, the credit union said it will waive penalties for premature withdrawals on term share certificates held by affected members.
The cooperative also provides free and confidential financial counseling and education through BALANCE Financial Fitness for help with budgeting, managing credit, and assessing their finances.
“We’re here to help our members should their income be affected by sequestration,” said Paul Marotta, Hanscom FCU chairman of the board. “We are true to our roots and the credit union motto ‘people helping people.’”
Several other credit unions also have announced plans to help members affected by the budget cuts.