Two of the largest banks used by military members have announced their shutdown loan programs to assist customers if a government shutdown delays pay. Both USAA and Navy Federal Credit Union (NFCU) offer interest-free loans to eligible customers if pay is interrupted. We all hope that the government does not shut down. But it can, and it might. And military pay can be impacted.
As of this writing, the federal government will shut down at midnight on Saturday, 30 September 2023 if legislation is not passed to keep it open. Military members have already received its September end-of-month pay. The real issue is the October mid-month paycheck, which is not schedule for another two weeks.
USAA Shutdown Loan Program
Once again, USAA has announced the programs available to members if a government shutdown delays military or government pay.
If this happens, USAA is prepared to offer an interest-free payroll loan to cover the shortfall of the paycheck, if you meet the eligibility criteria and live in a location where USAA is able
Eligibility requirements include, but are not limited to:
- Must have current direct deposit of government payments with USAA Bank and at least two months of consecutive direct deposits of such payments.
- Loan amount is based upon two weeks of your normal direct deposit.
- Loan maximum is $6,000.
- Must be in good standing with USAA.
- This offer may not be available to members permanently stationed in certain overseas locations.
If the government shuts down, USAA will send emails to eligible customers with a loan offer and specific details of the program.
Don’t fit into this group? Contact USAA directly at 1-800-531-USAA (8722) to discuss your specific situation.
Navy Federal Credit Union Shutdown Loan Program
Navy Federal Credit Union (NFCU) has announced that it will again offer a government shutdown loan program.
Details have not yet been released, but here are details from a previous time this happened. This year’s program may be different.
Items listed in color are details from the previous program:
Eligible groups now include:
- All Federal government employees, including the Department of Defense
- Active duty servicemembers of the Army, Marine Corps, Navy, Air Force or Coast Guard
- A federal government contractor paid directly by the federal government
The interest-free government shutdown loan program does not require a credit check but does require that you apply for the program.
This loan will be for an amount based upon, but not necessarily equal to, the amount of your missing or reduced deposit.
Repayment will be made via automatic debit for the same amount as the loan, on the date that back pay is received or 60 days after you receive the loan deposit, whichever is earlier.
Disability pay and other VA benefits should not be impacted by a government shutdown due to a lack of budget.
These shutdown loan programs are a huge benefit to our military community, but they do not replace the need for emergency savings. If you’re in a bind due to a potential government shutdown, prepare for next time!
If you have questions, please ask them in the comments and I’ll try my best to find answers!