EL PASO, Texas (KTSM) — The United Services Automobile Association (USAA) has provided $144 million in no-interest loans to around 39,000 members in just over 48 hours, aiming to help support military service members, their families, and federal employees amid the government shutdown, the company announced in a news release.
According to its website, USAA is a financial services company providing insurance and banking products exclusively to members of the military, veterans, and their families.
As part of USAA’s program, eligible members employed by impacted federal agencies, including active-duty military, can apply for a no-interest loan equal to one net paycheck, up to $6,000.
The loan, open to members who have received an eligible direct deposit into a USAA checking or savings account within 30 days before the beginning of the shutdown, features flexible repayment terms within 90 days, giving members room to manage finances during this period, according to USAA.
“Efforts like this are why we exist as an Association, to be there for our members when they need us most,” Michael Moran, president of USAA Federal Savings Bank, said. “Delivering this level of support in under two days demonstrates our commitment to providing our members with peace of mind during this difficult time. Our team is currently processing loan applications at a very high rate per hour and we continue to stand ready to support our members. This is the value of membership.”
In addition, USAA said it has processed tens of thousands of additional payment relief offers for banking and insurance products, including loan, credit card, and insurance payment extensions, as well as fee waivers.
USAA also encourages service members to seek additional support through military aid societies.
Since 2016, USAA said it has contributed over $40 million to these organizations to support service members and their families in times of need. These funds help provide emergency financial aid, career and educational support, and other resources through organizations such as:
- Army Emergency Relief
- Navy-Marine Corps Relief Society
- Air Force Aid Society
- Coast Guard Mutual Assistance
- Enlisted Association of the National Guard of the United States, We Care for America Foundation
- American Red Cross Service to the Armed Forces
Members can apply for a no-interest loan from USAA through the company’s app, usaa.com, or by phone.
Approved funds are typically available within two business days, though most initial disbursements have been delivered in less than 24 hours, according to USAA.
More information about USAA’s financial assistance programs related to the government shutdown is available here.
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