Add Associated Credit Union in Atlanta and Service Credit Unionin Portsmouth, N.H., to the growing list of cooperatives offeringloans to members who are likely to feel the impact of thesequestration cuts the most.

The $1.2 billion Associated CU said it will offer its 0% interest FederalEmployee Relief Loan for an amount equal to the difference betweenthe member's last direct deposited paycheck and the paycheck afterthe sequester cuts. The aim is to provide an interest-free moneystream while members are receiving a reduced government paycheck,according to the credit union.

Associated CU said it will also waive penalty fees onwithdrawals from certificates of deposit owned by members who arefederal employees.

“Since 1930, our core membership base has been federalemployees. We intend to stand shoulder to shoulder with our membersif and when we are needed.” said Lin Hodges, president/CEO ofAssociated CU.

The $2.2 billion Service CU said it will also offer a 0% sequestration loan upto $6,000 with repayment over 18 months with no payments for thefirst 90 days for members with existing direct deposit.

For those members who have been furloughed, they can withdrawfrom a current CD without any penalties as well defer payments on acurrent loan for 90 days, according to Service CU, which added thatalthough federal government workers will still be employed, theywill not be paid 20% of their salary.

“It will be difficult for many who are furloughed to comply withtheir financial commitments without some additional aid, which wewill provide,” said Gordon Simmons, president/CEO of ServiceCU.

Since 1957, the credit union has served the U.S. military andall Department of Defense civilian personnel, Simmons said.

Since the sequestration budget cuts went into effect on March 1, a numberof credit unions have started offering loans and other services tomembers who will be impacted.