Heavy Rains Have CUs Ready for Loan Demand: CUTimes25.
Byline: Credit Union Times
From the JUNE 4, 1990 issue of Credit Union Times
HOT SPRINGS, Ark.- Less than a week after flood waters raged through the South Central U.S., credit unions were bracing for a deluge of members seeking relief.
However, dozens of credit unions and four state leagues told Credit Union Times that the flood of humanity hasn't yet arrived.
"Many members have been affected, but they have not had the opportunity to clean up and find out what they need," reported Mary Bergan, manager of the 1,400-member Hot Springs Federal Employees CU. "Today we got our first call for a loan (as a result of the floods). Many members are styll trying to get federal assistance."
IN a town besieged by three flash floods, Hot Springs Federal was almost in need of assistance itself. The credit union, which operates from the basement of the local post office, "would have been flooded if not for the maintenance people that came in on the weekend to clear the drain pipes."
Fortunately the $2.5 million HSFECU was not an exception. The other three credit unions in Hot Springs, which was reportedly the most populated town (pop. 35,000) hit by the region's floods, saw their buildings remain intact. And credit unions in other storm-swept areas of Arkansas, Louisianan, Mississippi and Texas also reported no structural damage. Many other businesses and residencies were not as well off.
"It has been a disaster for many, but it seems to have flooded by the credit union industry," concluded Terry Young, public relations manager at the Texas Credit Union League. "I expect to find members asking for emergency loans , but they may first have to see if they're covered by insurance."
As Hot Springs waits for the flood waters to recede, at least one credit union is considering a formal relief program.
"I think we'll try to offer low-interest loans," disclosed June Faulkner, manager of the $500,000 Combined HeathCare FCU. "It's still too early to tell."