Virginia offers employees $500 loans

[Omaha Steve]

http://washington.bizjournals.com/washington/stories/2009/07/13/daily13.html

Monday, July 13, 2009, 2:44pm EDT

Washington Business Journal - by Jeff Clabaugh Staff Reporter

State employees in Virginia may be eligible for emergency loans of up to $500, under a new program announced by Gov. Tim Kaine Monday.

The governor’s office has established the Virginia State Employee Loan Program, a partnership between the Commonwealth of Virginia Campaign and Virginia Credit Union. Loans are available in amounts between $100 and $500 to state employees facing financial difficulties.

In order to qualify for the loans, state employees must complete an online financial fitness course and pass a brief exam.

“This program will allow our state employees to receive small loans without having to go to predatory lenders,” Governor Kaine said in a statement. “If the Commonwealth can offer this kind of program, other large employers may consider similar initiatives of their own.”

The loans don’t require a credit check, but won’t come cheap. They will carry an interest rate of 24.99 percent and be payable within six months. Employees must also belong to Virginia Credit Union and have a savings account with a balance of at least $5.

Loans will be backed by the Virginia State Employee Assistance Fund.

[jimshoes]

1. Damn, Virginia's getting into

the usury business. sheesh

[Amos Moses]

2. "They will carry an interest rate of 24.99 percent...."

disgraceful

[jody]

3. "interest rate of 24.99 percent" and VA LEO will collect past-due payments. Incredibly stupid! n/t