Redstone federal credit union offering loans for federal employees

The first loan payment is delayed for 60 days. Members will then have 12 months to pay the loan back.

Posted: Jan 8, 2019 6:19 PM
Updated: Jan 18, 2019 2:03 PM

5,500 federal workers in Alabama are furloughed because of the government shutdown. Redstone Federal Credit Union (RFCU) is offering members low interest loans and other benefits to help while they're not getting paid.

On Friday, many federal employees in Huntsville did not receive a paycheck, so some stopped by RFCU to apply for a loan.

Members who are affected by the government shutdown are able to apply for a 2% interest loan up to $5,000.

RFCU officials said if the shutdown continues, they expect a larger number of customers will need help.

Some families have savings to fall back on and have budgeted for emergencies like this, but Chief Marketing Officer, Fred Trusty said those who are struggling financially have stopped by to talk about money management.

"We're coming off the holiday season and we have all these bills coming in, you've got people who have to continue on with their lives. This is a way for them to continue on without really being affected," said Fred Trusty.

The first loan payment is delayed for 60 days. Members will then have 12 months to pay the loan back.

A spokesperson with the Alabama Department of Labor also stated federal workers can file for unemployment benefits if they meet the requirements. Once federal employees receive their back pay after the shutdown, those funds will have to be re-paid.

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