Sequestration Set To Begin March 1, Furloughs Expected
Scott Credit Union stands ready to help its members who could be furloughed from their jobs if Congress fails to prevent the government sequestration that is set to begin on March 1.
The local credit union will offer a Sequestration Loan at 0% APR and no payments for 60 days to any member who is furloughed from their government job due to the sequestration.
The sequestration will mean $1.2 trillion of forced budget cuts from government programs over the next decade. The government cuts on March 1 would mean that many federal workers could face furloughs as early as April 1.
“If congress does not act to prevent it, many of our members could face economic hardships,” said Scott Credit Union President & CEO Frank Padak. “We stand ready to help our members, especially those who work at Scott Air Force Base and could be out of work or are working fewer days each week at reduced pay. We are hopeful that this can be avoided.”
Scott Credit Union’s Sequestration Loan program will offer members the opportunity to borrow 100 percent of their most recent monthly net pay up to $5,000 at 0% for 60 days. They will not have to make any payments for the first 60 days and will have one year to repay the loan. The loan rate will be set at 4.75% Annual Percentage Rate after the first 60 days, Padak said.
“We are hopeful that if the sequestration does happen, that it will get resolved and people will be able to get back to work full-time quickly,” Padak added. “We really want to help them cover the next few paychecks and then pay it back when they are getting paid their full wage again.”
To qualify for the 0% loan, SCU members will need to have had their government payroll directly deposited into an account at Scott Credit Union and will need to show proof that they were furloughed from their job.
Scott Credit Union is a not-for-profit financial cooperative that is member owned. The credit union is member owned and recently gave about $1.2 million back to members through a bonus dividend and loan interest rebate.
Scott Credit Union is open to anyone who lives or works in a 17 county area, including Madison, St. Clair, Monroe, Randolph, Perry, Franklin, Jefferson, Washington, Clinton, Marion, Bond, Macoupin, Montgomery, Fayette, Effingham, Williamson, and Jackson counties. Anyone who lives or works in St. Louis County, Missouri also can open accounts at SCU. Additionally, anyone active or retired military also can have accounts with Scott Credit Union.
Scott Credit Union currently has 15 area locations: Scott Air Force Base, East Belleville, Fairview Heights, Collinsville, O’Fallon, Edwardsville, Waterloo, Highland, Caseyville, West Belleville, Millstadt, Mascoutah, Troy, East Alton and its Home Office in Edwardsville.
For details about SCU’s Sequestration Loan Program or on opening accounts at Scott Credit Union, visit www.scu.org, call 1-800-888-4728, or stop by any of the credit union’s branches.