RIVERSIDE, Calif. (7/26/10)--Altura CU Thursday announced an Emergency Loan Program to provide assistance to Riverside County workers who may have their pay temporarily reduced or delayed due to California’s budget stalemate. The state legislature did not pass a budget by the start of the new fiscal year on July 1. As a result, about 1,100 state workers stopped receiving pay on July 1, and Gov. Arnold Schwarzenegger ordered wages for about 200,000 other state workers cut to $7.25 per hour, the federal minimum wage, until a budget is passed. So far, state Controller John Chiang has not complied with that order, despite a state appellate court decision on July 2 ordering him to do so, the credit union said. “State workers get caught in the crunch when a budget isn’t passed on time. As a credit union, we are focused on helping people, particularly our members,” said Jennifer Binkley, Altura chief operating officer. “We developed the Emergency Loan Program to provide state workers with the cash they will need to pay their own bills if their pay is delayed or reduced. The program is open to state government employees who are current Altura members as well as nonmembers eligible for membership.” The Emergency Loan Program offers:
* 0% annual percentage rate (APR) for 90 days on an emergency loan; * No payments for 90 days; * A 12.99% APR after 90 days; * No prepayment penalties; and * No loan application fee.
The requirements and terms for the Emergency Loan Program include:
* The borrower must be an existing or new Altura member with payroll direct deposit; * The member must provide proof of delayed or reduced pay, and a copy of the last payroll stub; * Maximum loan is limited to three-month payroll advance based on current pay; * Maximum loan term is 18 months; and * Limited loan funding is available.
Several other credit unions have announced emergency loans to help state workers caught in state budget impasses. These include The Golden 1 CU, Sacramento; Virginia CU, Richmond, Va.; North Carolina State Employees’ CU, Raleigh, N.C.; Honolulu State FCU and more than 20 Pennsylvania credit unions.