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 The loans will be issued through participating credit unions with
money made available through the Treasurer’s Office linked-deposit
program. Linked deposits provide financial institutions money for
specific loan programs.
“The Treasurer’s Office uses tools to help our residents achieve
more, such as saving for college, investing in a business, or
planning for retirement,” Frerichs said. “This linked-deposit
program is a tool that provides short-term loans for workers while
the Governor and General Assembly resolve their differences.”
The state’s fiscal year ended June 30. The absence of a budget
agreement means the state does not have the authority to pay certain
bills, such as wages to some state employees.
An estimated 60,000 state workers might qualify for the loan
program. Participating credit unions will decide eligibility. Loans
cannot exceed 50 percent of pay. Loans are interest-free until 30
days after payroll resumes. A 9.9 percent interest rate will be
charged beginning the 31st day. Frerichs’ office negotiated the rate
down from 12 percent and it remains half of the typical credit card
rate. The Treasurer’s Office will charge credit unions 0.01 percent
interest.
 As much as $50 million will be made available for the loans. The
Illinois Credit Union League and Credit Union 1 were instrumental in
creating this linked-deposit effort and recruiting other credit
unions to participate. Their recruitment efforts continue and the
Treasurer’s Office expects other credit unions to join the effort.
“True to their mission of ‘People Helping People’, Illinois credit
unions are stepping up to assist their members’ financial needs,”
said Tom Kane, President/CEO of the Illinois Credit Union League.
“Partnering with the Illinois State Treasurer’s office will provide
even more resources to help them weather the budget impasse.”
“Credit Union 1 is pleased to again provide assistance to State of
Illinois employees should their payrolls be interrupted due to the
budget impasse,” said Brenda Crane, SVP/COO. “We have provided the
Loan Assistance Program to our members since 1995 and it has clearly
evolved over time as a true benefit of credit union membership.”
“We appreciate the efforts of Treasurer Frerichs to provide
assistance to Illinois residents impacted by the budget impasse,”
said E.J. Donaghey, CEO of the University of Illinois Employees
Credit Union. “As a long-time supporter of credit unions and
advocate for the people of East Central Illinois, he has
consistently demonstrated a proactive approach to helping others.”
“In response to the stress being placed on many of our members’
finances due to expected delays in payroll from the State of
Illinois, we have developed a program to keep these members in a
positive financial position,” said Alan Meyer, President/CEO of 1st
MidAmerica Credit Union. “Along with this Payroll Interruption Loan
Program, we also encourage employees that currently have loans with
1st MidAmerica to contact us and review their payment options. Our
staff will be available to review the full details of available
programs with any interested state employees.”
About the Illinois Credit Union League
The Illinois Credit Union League (ICUL) is the primary trade
association for credit unions in Illinois and provides its members
with compliance and other pertinent operating information,
legislative advocacy and educational development opportunities.
Membership is open to any credit union operating in accordance with
the Illinois Credit Union Act or the Federal Credit Union Act. There
are 306 credit unions in Illinois serving almost 3 million members.
More at: www.iculeague.org.
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About Credit Union 1
As a member-owned, not-for-profit financial institution, Credit Union 1 is a
state chartered credit union with its corporate headquarters located in Rantoul,
Illinois. Dedicated to providing convenient and competitive services to more
than 95,000 members, Credit Union 1, with assets of $771 million, has 23
branches located in Illinois, Nevada, and Indiana. More at:
www.creditunion1.org.
About the U of I Employees Credit Union
The U of I Employees Credit Union (UIECU) was founded in 1932, and today serves
the University of Illinois community and anyone who lives or works in Champaign
County. UIECU is a full-service financial alternative providing checking
accounts, investments, low-cost consumer loans, mortgages, and related financial
services to its member-owners. As a not-for-profit, member-owned financial
cooperative, the U of I Employees Credit Union’s goal is to improve the
financial lives of its members. The credit union serves 43,000 member-owners at
its three locations in Champaign-Urbana and on the web at
www.uiecu.org.
About the 1st MidAmerica Credit Union
1st MidAmerica Credit Union is a not-for-profit financial cooperative that
serves more than 58,000 members through 11 Illinois branches in Alton, Bethalto,
Decatur, East Alton, Edwardsville, Godfrey, Granite City, Jerseyville and Wood
River. Membership is open to residents of 21 counties in central Illinois. More
at: www.1stmidamerica.org.
About the Illinois Treasurer
The Illinois Treasurer is the state’s Chief Investment Officer and Frerichs is a
Certified Public Finance Officer. He protects consumers by encouraging savings
plans for college or trade school, increasing financial education among all
ages, and removing barriers to a secured retirement. As the state’s Chief
Investment Officer, he actively manages approximately $25 billion. Currently,
the portfolio includes $13 billion in state funds, $7 billion in college savings
plans and $5 billion on behalf of local and state governments. The investment
approach is cautious to ensure the preservation of principal and returns $28 to
the state for every $1 spent in operations. The Treasurer’s office predates
Illinois’ incorporation in 1818. Voters in 1848 chose to make it an elected
office. More at:
www.illinoistreasurer.gov.
[Office of the Illinois State
Treasurer Michael W. Frerichs] |
