As we prepare for a potential federal government shutdown, we know that credit unions will shine as beacons of hope and support. We encourage you to remain proactive and well-prepared to ensure your credit unions can continue strengthening and supporting your members.
We have prepared resources for you to help continue to support your members through a potential government shutdown. You can access those resources below.
CUs Supporting Members During Times of Crisis
In times of crisis, credit unions across our six-state region have consistently demonstrated their commitment to supporting their members. Here are some examples of how GoWest credit unions have stepped up to help during government shutdowns and other challenging times:
Mason County Credit Unions
- Major Employer Closure: A group of credit unions stood shoulder to shoulder when a major employer closed:
- Joint Press Releases: They issued joint press releases to assure their members and the community of their commitment.
- Collaborative Events: Together, these credit unions, partnered with cellphone providers, food banks, and organizations addressing food insecurity to put on community events.
Example Initiatives
- Penalty-free certificate withdrawal.
- ‘Skip A Pay’ options to provide relief from loan payments.
- Borrow and Save programs to assist with immediate financial needs.
- Shared secured loans to help members access funds.
- No-fee cash advances during critical times.
- All team members are trained financial counselors.
- An emergency paycheck advance loan program to provide immediate relief.
Unified Messaging: These credit unions came together with a unified voice through press releases and videos to emphasize that credit unions are always there for their members, especially during challenging times.
Credit Unions with Large Military Memberships
These credit unions extended their support to members impacted by government shutdowns and other crises.
- Offered zero-interest personal loans, to help workers avoid the need for high-interest payday loans
- Welcomed non-members to become members to access these benefits.
- Provided back-to-back skip pay options for existing loans.
- Allowed members to apply for multiple relief options for maximum flexibility.
One Oregon Credit Union
- Required members to be in good standing for 60 days.
- Proof of furlough status was needed to access certain benefits.
- Provided penalty-free certificate withdrawals for eligible members.
Elevations Credit Union
Elevations Credit Union is proud to provide peace of mind and assistance to its members impacted by the federal government furlough with two assistance plan options:
- Skip-a-Pay on outstanding Elevations consumer loans in good standing.
- Interest-free personal loans equal to the member’s monthly net pay up to a maximum loan amount of $20,000.
In addition, Elevations is asking members who have been furloughed to call them or visit a branch to discuss their situation with an Elevations team member if they need additional support beyond these offerings. Elevations Credit Union is committed to standing with its members in this time of uncertainty.
A Wyoming Credit Union Foundation
- Established a Heat Energy Assistance Trust (HEAT) program in 2023 to help pay home heating bills
- Members of Meridian Trust Federal Credit Union in any state could receive the grant, which was made to the service provider.
America’s Credit Unions wants your help to quantify how much credit unions have provided support to those most affected in the event of a shutdown. Please visit here to input your information.
FAQs - Federal Government Shutdown
Who will be affected by the shutdown?
- “Non-Essential” Federal Programs and Agencies: These will cease operation and personnel will be furloughed without pay.
- Furloughed employees can become eligible for unemployment compensation, but it depends on where they live. State laws apply. Some states require a one-week waiting period before an individual can quality for unemployed payments.
- Essential Workers: Essential workers — including military personnel, federal law enforcement, TSA agents, and border patrol workers — may be required to continue working despite not receiving their pay during the shutdown.
- SBA and FHA: The Small Business Administration (SBA) and the Federal Housing Administration (FHA) may be unable to process loan requests and loan origination applications during the shutdown.
- IRS, FinCEN, and National Flood Insurance Program: Services provided by these agencies may experience interruptions. Please consult their websites for the latest information in case of a shutdown.
- FARM Bill: The FARM Bill, which funds the federal Supplemental Nutrition Assistance Program (SNAP), is expected to expire. This could leave millions of low-income families without food-purchasing assistance.
Which services and programs continue?
- Mandatory Social Safety Programs: Programs such as Social Security, Medicare, and Medicaid payments will continue, along with support for most employees who oversee these programs.
- Congress: Congress is considered “essential,” and all senators, representatives, and key staff will continue working and will be paid during any shutdown.
- Financial Regulatory Agencies: The NCUA (National Credit Union Administration) and other banking regulators are independent of the federal appropriations process and will remain in service to financial institutions. Additionally, the CFPB (Consumer Financial Protection Bureau) and the Federal Reserve will continue their operations.
Compliance & Response Resources
Examples of CU Responses
- A message of support from Peninsula Credit Union
- Federal Government Shut Down from Peninsula Credit Union
Compliance Resources
A government shutdown can impact your credit union’s operations, especially if you primarily serve federal employees. We want to make sure that you are prepared.
As you are planning for the looming shutdown, here are some steps you can take:
Ensure Policies Provide Flexibility
- Review and update policies to provide flexibility in responding to members’ financial needs during a federal government shutdown.
Prepare for Service Interruptions
- Develop contingency plans for service interruptions, especially if your credit union has offices or branches in federal buildings that may be affected by a shutdown.
Direct Deposits Assistance
- Take steps to prudently assist members affected by the shutdown, including providing advances to individuals receiving direct deposits from the federal government.
Plan for Government Program Participation
- Develop contingency plans for participation in government programs. For example, if your credit union offers loans backed by the Federal Housing Administration (FHA), you will need to decide if you will proceed with scheduled FHA loan closings and hold and guarantee new FHA loans until any impasse on federal spending ends.
Communicate
- Communicate your credit union’s response plans and efforts throughout the shutdown and once it is resolved. Keeping your members, employees, and customers informed is crucial to maintaining trust and clarity.
Safety and Soundness Considerations
Work with members who are facing economic challenges to address any financial difficulties that a federal government shutdown might create — it is in the best interest of your members and of your credit union. Here are some ways credit unions may assist:
Special Assistance Programs
- Consider offering special programs to assist members needing short-term loans or other financial assistance during the shutdown.
Customized Loan Programs
- Create loan programs with special terms and rates to cater to members’ unique financial needs during the shutdown.
Payment Flexibility
- Provide payment flexibility for existing loans to federal employees affected by the shutdown, offering temporary relief.
HR/Compliance Support
The NCUA has provided other articles and guidance related to the previous shutdowns (2018 ,2019), which credit unions may find helpful until the agencies issue updated guidance:
- Planning and Preparedness for a Potential Government Shutdown
- NCUA to Remain Open, Credit Union Members’ Shares Insured, While Federal Government Closed
- Regulators Encourage Institutions to Work with Borrowers Affected by Government Shutdown
- Guidance on the Lapse of FEMA’s Authority to Issue Flood Insurance Contracts
Guidance from Fannie Mae
- All Fannie Mae Single-Family Sellers Impact of Federal Government Shutdown
- All Fannie Mae Single-Family Servicers Impact of Federal Government Shutdown (Servicing)
If you have questions, please reach out to the GoWest Compliance team, [email protected].