New Mexico credit unions offer programs to help people through government shutdown

New Mexico credit unions are offering loan programs and waiving penalties to help workers affected by the federal government shutdown.

Credit unions are nonprofit, member-owned financial institutions, and three Albuquerque-based credit unions are offering programs to help out members who have been furloughed or are missing paychecks because of the shutdown.

“I think people keeping their cars, staying in their homes, having access to credit or funds to help bridge them to whatever this looks like on the other end, that’s where we can show up,” said Alex de la Cruz, executive vice president at Sunward Federal Credit Union.

Sunward Federal Credit Union is offering a member assistance program during the government shutdown. The program has been offered to its members before in other times of financial hardship, like after recent floods in Ruidoso.

It includes waived penalties for early term certificate withdrawals, waived non-sufficient funds and penalty fees for overdrafts, skipping a payment on a signature loan or auto loan, requesting a loan modification on mortgages, and applying for a relief loan for up to three months net pay.

If the shutdown stretches out for a long period of time and member needs increase, the credit union will add more things to the program to help mitigate those effects, de la Cruz said.

While government shutdowns can financially strain federal employees, they can also affect military personnel and if a shutdown stretches out, can impact small or midsized businesses that support federal institutions, according to de la Cruz.

To prepare ahead of a government shutdown, make sure you have savings and are managing your credit score and budget, de la Cruz said. To respond to a shutdown, you can lean on trusted financial partners.

He said that could be a credit union or bank you have an account with, state resources or municipal and county programs.

Nusenda Credit Union is also offering flexible loan payment options, early certificate withdrawals and a 0% interest member assistance loan, to help ease the financial burden for members, according to spokesman Eric Harrison.

U.S. Eagle Federal Credit Union is also offering a relief loan for its members, with 0% interest for the first 90 days. The Eagle Relief loans are up to $5,000 and meant to help members who experience a sudden loss of income, like a furloughed federal employee. It requires documentation of the hardship. Affordable short-term loans are also available for non-members affected by the shutdown.

“In situations like these, we’re less concerned about how much money we can earn off a loan or anything like that,” said Michael Moore, executive vice president and CFO of the credit union. “We just want to make sure that people are able to get back on their feet, and we are happy to be a part of that.”

The government shutdown does not extend to the National Credit Union Administration and the Federal Deposit Insurance Corp., the federal agencies that provide deposit insurance to credit unions and banks. Both entities are considered essential and continue operating.