Federal employees take out $328 million in bank loans
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USAA has issued more than 90,000 no-interest loans to federal employees affected by the government shutdown, totaling about $328 million. Bank of America is offering credit deferrals and auto loans. Dozens of other banks are offering assistance.
Why it matters: Federal employees are taking banks up on the help in droves, indicating how much assistance workers are seeking after some missed their first full paychecks.
What they're saying: "We've seen a significant number of customers reach out to us on our special care line," a spokesperson with Chase said.
By the numbers: Interest and volume has been "very healthy" at USAA since the relief program began, with total relief hitting just under $350 million, a spokesperson with the bank said.
- Gate City Bank is offering a no-rate loan up to $5,000 with a six-month term where funds are distributed same-day, and the firm has received a steady inflow of interest since the federal spending lapse began.
Between the lines: How long does it take to get one of these loans?
- Baycoast Bank loans range from $1,000 to $15,000 with an estimated turnaround of one to two business days from application approval to funding.
- Civista Bank is offering no-interest loans with no credit check required to be deposited the same day, with the loan amount equal to the customer's most recent paycheck deposit.
The timeline for paying back the loans varies among institutions.
- USAA allows members 60 to 90 days for repayment from the loan issue date, but cites that other institutions require the money back as soon as backpay is issued to the customer.
What to watch: How loan demand develops as the shutdown continues.
- Multiple major banks told Axios they have seen increased demand, but didn't have loan data compiled yet, given the recency of the shutdown.
- Axios reached out to over 20 banks, including every major national bank.
