Purpose: This Program is in response to the unfortunate impact of the partial US Government Shutdown, and is intended to provide some stop-gap assistance until the US Government (Federal) employee, who has been furloughed or required to work without pay, begins receiving his/her paycheck again.
Eligibility to apply: Eligible persons to apply must (a) be able to establish that he/she is a furloughed Federal employee or working without pay due to the Shutdown, by submitting notice from the Government; (b) is a present member of the Credit Union, or become a newly established member within the field of membership and pay the Membership Fee of $3.00 and initial share deposit of $25.00. Persons within the field of membership are members of Phi Beta Sigma Fraternity and Zeta Phi Beta Sorority and their immediate families.
Loan Amount: Up to $2,500
Interest Rate: 3 – 6%
3%, if repaid in full upon employee receipt of back-pay from Government when Shutdown ends. 4 – 6 % based on Credit Score, if installment payments completed in 2 – 6 months after Shutdown ends.
Term (Repayment Period): 1 – 6 months from disbursement.
This is a short-term loan Program whereby the funds that are advanced will be repaid when the Federal employee receives payment of his/her missed checks (back pay). The assumption at this stage is that the Shutdown, which began on December 22, 2018 and has already lasted almost a month, could last another two weeks or longer, given political pronouncements. The term (length) of the loan is intended to be no longer than the length of the Shutdown period plus thirty days. However, the Government has only promised to issue back pay as soon as possible when the Shutdown ends – hence, this assistance Program. Repayment will not be required to begin until the first pay check is received by the employee, when the Shutdown ends. The expectation is that the loan will be repaid upon receipt of the back pay, unless circumstances require a longer period. Loan is to be repaid in full no later than six (6) months after the funds have been disbursed.
Documents required:
– Completed Application
– Two last payroll stubs or statements prior to Shut down; – Credit report, obtained by the credit union
– Completed and signed pre-authorized draft form and voided check to permit repayment from checking or savings bank account.
– Completed CU Membership Application if not now a member, copy of driver’s license; and $28 fee which can be deducted from loan)
– Loan application and pre-authorized draft form available on-line at pbsfcu.org.
Submission: Scan completed application and pre-authorized draft form and e-mail to: pbsfcu1986.org with cover note and best contact phone number; or fax same to 202-726-5814, and e-mail notification with your contact phone number, alerting that that application documents were faxed.
Approval determination will be made within 48 hours of all required document submission. Program and available funds are subject to a bi-weekly review as the Shutdown progresses.
Further information available by e-mailing pbsfcu1986@aol.com, or calling 202-726-2285 CU office; or contacting CU Education Committee Chair, Hon. Bro. Martin Currie, 615-390-9418 mobile