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Pennsylvania credit unions along with banks were singled out last week by Gov. Edward G. Rendell for “acting in a socially responsible” manner in providing low-cost loans to hard-strapped state employees facing payless periods during the state’s prolonged budget impasse. “I am extremely grateful to the institutions that have responded to our requests and have agreed to develop financial products to help eligible state employees cope with these potentially difficult circumstances,” the governor said at a Harrisburg press conference. The CUs include Pennsylvania State Employees CU, AmeriChoice FCU, Members 1st FCU, and Oil Country FCU. Others identified by the Pennsylvania Credit Union Association as planning to offer loans include Altoona VA Hospital FCU, Belco Community CU, Grove City Area FCU, NE PA Community FCU and Your Choice FCU. In his remarks, the governor noted, “Each of these institutions has its own criteria for eligibility and participation, programs and interest rates in establishing low- and no-interest loans and lines of credit.” He was joined by Secretary of Banking Edward Kaplan, who, in particular, praised PSECU and President/CEO Greg Smith for “leading the way to remedy these problems and stepping up to take social responsibility.” Since PSECU began offering 0% loans in May, volume has jumped 20% on the product, which is offered to those state employees who stay on the job but don’t receive a paycheck. Commonwealth officials estimate that as a result of the crisis, which hinges upon lawmaker approval of next year’s budget, 69,000 state employees will be missing paychecks beginning July 17. –jrubenstein@cutimes.com Ill. CU Offers Members Budget Crisis

Peter Westerman

Credit Union Times

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