SAN ANTONIO, Jan. 15, 2019 /PRNewswire/ -- With thousands of Coast Guard service members and families facing financial hardship as a result of the ongoing government shutdown, USAA and Coast Guard Mutual Assistance (CGMA) are teaming up to help those service members and families in need.
With the support of a $15 million donation from USAA, CGMA will disburse interest-free loans to Coast Guard personnel with the assistance of the American Red Cross Hero Care Center electronic fund distribution process. Effective 16 January 2019, Coast Guard service members with dependents will be eligible for interest-free loans up to $1,000, while service members without dependents will be eligible for up to $750.
The CGMA loan assistance is designed to cover an estimated two weeks of shortfalls due to not being paid, such as housing, essential utilities, food and child care and is available to all Coast Guard service members.
Coast Guard service members needing assistance should visit www.cgmahq.org.
"USAA's mission is to be there for our members when they need us most," said USAA CEO Stuart Parker. "This initiative, together with our efforts directly supporting members, will help thousands of Coast Guard families."
"Since 1924, the mission of CGMA is unchanged—to help members of the Coast Guard family in their time of financial need. They are feeling that need now more than ever," said RADM Cari Thomas, USCG (ret) CEO, CGMA. "This incredible gift makes a difference in the lives of Coast Guard men and women. And it will position CGMA to respond during this time of uncertainty for those that rely on Coast Guard paychecks and pensions: active duty, reservists, civilian employees, retirees and annuitants."
"The American Red Cross has a long history of providing help during emergencies to members of our military, and we are proud to partner with Coast Guard Mutual Assistance and USAA to administer support to the Coast Guard community during this time of financial stress," said Koby Langley, senior vice president of the Red Cross Service to Armed Forces.
In direct support of members, USAA is offering a one-time, low interest loan1 to active Coast Guard, National Oceanic and Atmospheric Administration Corps, Public Health Service Corps personnel whose pay is disrupted. The loan interest is 0.26% APR, but may fall to as low as 0.01% APR with an optional Automatic Payment Plan.2
USAA is also making available additional special offers to help all members affected by the partial government shutdown. Members may be eligible for the following:
- 60-day payment deferral on consumer loans (auto, personal, etc.)
- 90-day payment deferral on credit cards, interest will continue to accrue
- Special payment arrangements on auto/home insurance premiums3
The USAA family of companies provides insurance, banking, investments, retirement products and advice to more than 12.8 million current and former members of the U.S. military and their families. Known for its legendary commitment to its members, USAA is consistently recognized for outstanding service, employee well-being and financial strength. USAA membership is open to all who are serving our nation in the U.S. military or have received a discharge type of Honorable – and their eligible family members. Founded in 1922, USAA is headquartered in San Antonio. For more information about USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.
Serving as the official aid society for the United States Coast Guard, CGMA provides essential financial relief to the entire Coast Guard community. CGMA is one of four congressionally-sanctioned Military Aid Societies that collectively helps 2.5 million service members from each military branch and their families. The charity provides grants and no-interest loans for needs such as disaster relief, education, and family support. Since 1924, CGMA has provided over $187 million in direct assistance to the Coast Guard community. For more information: visit www.cgmahq.org, or find CGMA on Facebook or Twitter (@CGMutualAssist).
About the American Red Cross:
The American Red Cross shelters, feeds and provides emotional support to victims of disasters; supplies about 40 percent of the nation's blood; teaches skills that save lives; provides international humanitarian aid; and supports military members and their families. The Red Cross is a not-for-profit organization that depends on volunteers and the generosity of the American public to perform its mission. For more information, please visit redcross.org or cruzrojaamericana.org, or visit us on Twitter at @RedCross.
1 To be eligible for this loan, you must be a member of the Coast Guard or National Oceanic and Atmospheric Administration Corps or Public Health Service Corps. Retirees and members separated from the Coast Guard or National Oceanic and Atmospheric Administration Corps and Public Health Service Corps are not eligible for this special loan.
2 To be eligible you must have a USAA Federal Savings Bank Checking account, Savings account or Certification of deposit as of 01/13/2019. A 12-month personal loan with an annual percentage rate (APR) of 0.01% would have monthly payments of $208.34 per $2,500 borrowed. Loan subject to underwriting standards and credit approval. This advertised rate includes discount of .25% for Automatic Payment Plan. Automatic payment plan is not a requirement for approval of credit.
As an example, for an eligible borrower who qualifies, a $2,500 loan, with an Automatic Payment Plan in place, would have an APR of .01%, a monthly payment of $208.34 per month for 12 months, and would pay a total of $.08 in interest over the 12 months, assuming on-time payments.
Use of the term "member" or "membership" refers to membership in USAA Membership Services and does not convey any legal or ownership rights in USAA. Restrictions apply and are subject to change.
3 Restrictions apply and are subject to change without notice.
Loans provided by USAA Federal Savings Bank, Member FDIC.
USAA means United Services Automobile Association and its affiliates.
Contact: USAA Media Relations
Phone: (210) 498-0940
USAA on Twitter: @usaa