Amid uncertainty about federal government funding, USAA is ready to offer a zero-interest payroll advance loan and other temporary solutions to affected members whose paychecks could be impacted.
Solutions From USAA
|Potential Payroll Advance Loan
In the event of a government shutdown that threatens military pay, USAA is prepared to offer a zero-interest payroll advance loan to members of the military with existing direct deposit at USAA, including the National Guard and Reserves.1 The loan would be approximately equal to your expected direct deposit, or half of your expected direct deposit if you are paid monthly.
USAA has a number of solutions to help members who receive a government paycheck and find themselves in financial distress because of sequestration.
These temporary solutions are available for affected members’ existing products and include:
For those who are adversely impacted by sequestration, we encourage them to contact us so that we can identify solutions that help meet their particular need. Members should contact us for free financial advice at 800-531-USAA (8722).
USAA is prepared to offer the payroll advance loan to affected military members with existing direct deposit at USAA Bank if a government shutdown interrupts military pay. Likewise, members who have existing direct deposit arrangements at USAA Bank for their VA and Social Security checks would be eligible for the loan if their payments were interrupted due to a debt ceiling impasse.
If a loan offer becomes necessary, USAA will email those members and provide information in the “My Offers” section of usaa.com. We will also offer other solutions, including special payment arrangements to help USAA members who receive government payments and find themselves in financial distress because of a shutdown.
“We all hope that policymakers will reach a deal before military pay is threatened,” says David Bohne, president of USAA Bank. “But we stand ready to help our members who would be impacted if that happens.”
Federal Spending Deadlines
The government’s authority to spend money will expire Sept. 30. Without a spending agreement before Oct. 1, the government would largely shut down. Without a solution, a shutdown could threaten federal paychecks on Oct. 15.
A second deadline involves the federal debt ceiling, which is the total amount of money the federal government is authorized to borrow. The government could reach that ceiling as early as Oct. 17, and, as a result, federal payments after that date could be disrupted.
What Can You Do?
It’s difficult to predict if the country’s spending and borrowing issues will be resolved without triggering a shutdown or other consequences for everyday Americans. Given the potential impact if things don’t go smoothly, it’s smart to prepare for a worst-case scenario.
If you’re a federal employee or otherwise depend on government outlays to make ends meet, check these 5 Tips to Prepare for a Government Shutdown.
Must have current direct deposit of government payments with USAA Bank and at least two consecutive direct deposits in the past 60 days. Loan amount is based upon two weeks of normal direct deposit, and loan maximum is $6,000. Must be in good standing with USAA. The loan amount deposited into USAA account will be automatically debited at the next scheduled direct deposit. Loan will not be funded if government payment is not interrupted.
2 Interest continues to accrue during any deferment periods.
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