The $745 million, 100,000-member Credit Union 1, headquartered in Rantoul, Ill., is preparing to launch its Employee Loan Assistance program for Illinois state employees, many of whom are Credit Union 1 members who may be furloughed due to a state budget crisis.

The Illinois legislature, which is dominated by Democratic representatives (71-47 House, 39-20 Senate), passed a budget that Bruce Rauner, the state's Republican Governor, has rejected. This ongoing impasse threatens to cut some state employees' pay sharply, according to media accounts.

If no budget deal is made before July 1, Rauner has said state offices will remain open, but the Attorney General, Lisa Madigan, said rank-and-file workers would only receive the federally mandated minimum wage. Madigan also said the state workers would be eligible for back-pay once the crisis ends.

Credit Union 1 has watched the ongoing stalemate closely because Illinois state employees have been part of its field of membership for a long time, according to Credit Union 1 COO Brenda Crane.

“We never had the name Illinois State Employees Credit Union, but that was how a lot of people knew us,” Crane said.

Crane said state employees comprise a large percentage of the credit union's members, and that Credit Union 1 launched the program several times since 2007, when another state budget crisis first required the program.

Under the program, credit union members who are paid by the state government can access loans to help them cover their missed paychecks and stay current on bills. Crane said the loans would carry a 0% APR while the crisis continues, but once it ends, members can choose to convert the loans to long-term, low-interest loans at 9.9%.

“We're just pleased that we are able to offer our members this tangible benefit of being credit union members,” Crane said.

Crane said the last time the credit union activated the program, during a disruption in the legislature's payroll cycle, Credit Union 1 made less than $100,000 of the loans but that the cooperative has $2.5 million budgeted for this crisis.