The $3.4 billion Pennsylvania State Employees Credit Union said that as of today, it has disbursed more than $2.9 million to 3,300 payless state employees.
The first wave of payless state employees began applying for short-term loans while state lawmakers seek to resolve the ongoing budget crisis. PSECU said it hoped its $1,000, 0% interest Pa. Budget Impasse Loan would help "commonwealth employees make ends meet during the budget impasse," which began last Friday.
The Harrisburg CU is one of more than 25 Pennsylvania CUs offering various debt-relief vehicles to members as the financial crisis lingers.
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"While we had hoped that we could have avoided this situation, we are relieved that our planning has allowed this process to go relatively smoothly," said Gregory A. Smith, president/CEO of PSECU. "The loan area has been working 12-hour days in preparation for this situation, and on this past Friday and Saturday our phone staff answered over 5,700 calls."
He said the PSECU staff "has been working diligently to help our state employee members." The impasse loan is available up until 60 days after the governor signs the new budget into law. Any loan balance remaining after 60 days will begin accruing interest at 3.9% until paid off.
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