During shutdown CUs provided $64 million in low- or no-interest loans

More than 500 credit unions around the country provided more than $46 million in low- or no-interest loans to over 60,000 credit union members affected by the 35-day government shutdown that ended Jan. 27.

CUNA recently conducted a survey of credit unions who assisted members during the shutdown and recorded the data from approximately 500 responses.

Survey responses showed:

• More than 60,000 credit union members turned to their credit union for support;
• More than 11,000 members were afforded loan extensions and other loan modifications, often with associated fees waived; and
• More than 3,000 people joined a credit union during the shutdown to help them weather the shutdown’s financial uncertainty.

Responses also indicated that, while banks offered to defer existing loans, few if any were able to help customers deal with day-to-day costs, while many credit unions were able to tailor products explicitly for that purpose.

A recent poll from Prudential found that 62 percent of families affected by the shutdown depleted most or all their savings. A poll conducted by Fox News in January found that 54 percent of Americans are within two paychecks of severe financial stress, and the Prudential poll also found that 63 percent of Americans can’t cover a $500 emergency.

“We are so proud of the support credit unions have delivered to federal employees across the board, and particularly our own Cornerstone-region credit unions,” said Caroline Willard, president and CEO of Cornerstone Credit Union League. “They truly fulfill the promise of people helping people every day.”