In light of the government shutdown, Gate City Bank has helped furloughed federal employees by extending loan payments, honoring closing dates and working around potential overdraft situations. The bank’s goal has been to proactively reach out to these customers to pursue healthy financial solutions.
Additionally, Gate City Bank has offered its BetterLife™ Loan as an option to federal government employees who need assistance during the shutdown. This is a short-term loan intended to help cover the time period during which they’re not receiving a paycheck. The loan features a zero percent interest rate and no fees.
Providing options for affected customers and community members is important to Gate City Bank. “It’s difficult to see those experiencing financial hardship due to this shutdown, and as their bank, we want them to know we’re here to help,” said Kim Settel, Executive Vice President of Retail Banking & Lending.
Gate City Bank is already seeing customers reach out to learn more about their options, and it encourages people to continue to do so. “I had a customer who was nervous about letting us know. We were able to help the customer by adjusting their upcoming loan due date,” said Norm Clark, Senior Vice President. “The customer said it put their mind at ease, since they didn’t need to worry about how they were going to make payments, plus buy groceries and pay their monthly utilities.”
For Americans, missing a paycheck is more than inconvenient – it’s an emergency. According to a recent study from CareerBuilder, 78% of U.S. workers are living paycheck to paycheck. In another study done by Bankrate, only 39% of Americans have enough savings to cover a $1,000 emergency. Lastly, a report produced by the Federal Reserve found that 44% of Americans couldn’t cover a $400 emergency expense out of their pocket. Rather, they would have to borrow or sell something to cover it.
“We take the financial impact of this situation on our customers very seriously and want customers and community members to know we will work together to find a solution,” Settel said.
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