PayPal is joining a long list of banks offering interest-free loans to unpaid federal workers affected by the partial government shutdown – providing cash advances of up to $500 per employee until they hit $25 million.
Starting immediately, PayPal is offering an interest-free cash advance up to $500, the equivalent of one week’s take home, for any existing or new PayPal Credit customers who are federal employees and are struggling to make ends meet,” said PayPal CEO Dan Schulman in a Friday USA Today Op-Ed.
“We are committing to fund up to $25 million of interest-free cash advances to help federal government employees pay for food, gas and other everyday necessities,” he added. “We hope that this program can provide some relief and certainty in uncertain times.”
Approximately 800,000 federal workers missed their first full paychecks last Friday, and have either been furloughed or working witout pay due to the longest government shutdown in US history, now in its 28th day.
The shutdown impasse revolves around roughly $5 billion demanded by President Trump for his long-promised border wall, which Congressional Democrats refuse to fund.
Schulman said that PayPal’s offer is “not fueled by politics, rather it’s a matter of values.”
“The world is changing rapidly, and our economic and political landscapes are dynamic and often unpredictable. This is a time to step up for each other and support the people around us who suddenly find themselves in a difficult spot,” he said, adding “Our mission at PayPal is to help drive financial health for all people. Helping our partners in the public sector is neither a red or blue issue; it’s a red, white and blue issue.”
PayPal joins a long list of banks offering programs or assistance for government workers. Here is a list of banks and credit unions helping federal workers.
- 1st Security Bank of Washington
- Baker Boyer Bank
- Bank of America
- Banner Bank
- Cashmere Valley Bank
- First Federal
- Kitsap Bank
- JPMorgan Chase
- Sound Community Bank
- Union Bank
- U.S. Bank
- Washington Federal
According to CNBC, “Colorado’s Alpine Bank has set aside $5 million to help furloughed workers. If you can prove you’re an unpaid federal employee, you can get an interest-free loan the same day you apply.” More:
Provident Bank in New Jersey recently announced it will cancel mortgage and credit card late fees for federal workers and allow them to break their certificates of deposit early without any penalties.
Huntington, a bank based in Columbus, Ohio, with some 960 branches across the Midwest, is offering a “low rate, quick loan program” for customers who are federal employees.
Launch Federal Credit Union has a zero-percent interest rate for loans up to $3,000 to federal government employees. Navy Federal Credit Union is doing the same, with a limit of $6,000. For more information, check out its frequently asked questions page.
The U.S. Employees Credit Union is providing interest-free loans to impacted members for 60 days, regardless of their credit score.
Justice Federal Credit Union is offering unsecured loans with low interest rates to any impacted workers at the Department of Justice or Department of Homeland Security.
Credit union FedChoice will waive early-withdrawal fees on some certificates of deposit and issue short-term loans with interest rates as low as 2.50 percent. Among other requirements, you’ll need to provide evidence of your furloughed status. –CNBC