Governor announces lending program for state employees at low interest rate - NBC12 - WWBT - Richmond, VA News On Your Side

Governor announces lending program for state employees at low interest rate

By Jola Szubielski - bio | email
Posted by Terry Alexander - email

RICHMOND, VA (WWBT) - Help is on the way for state employees and it's in the form of a low interest emergency loan.

Monday morning, Governor Kaine announced a new short-term lending program. The loan is for up to $500 dollars and it's restricted to state employees only, but the governor says it's a good option for those need money in a hurry, while giving them an alternative to payday lending companies.

Governor Tim Kaine's stand on payday loan lenders is clear. He says it was a mistake to allow those companies into the commonwealth back in 2002. While the legislature continues to regulate their activities - a new option for state employees struggling during this economic recession.

"We can regulate pay day lending and other predatory lending but people do have a need for small dollar loans that not being met in the market place now," said Governor Kaine.

Current state employees who are members of the Virginia Credit Union are now eligible for emergency loans of up to $500, one at a time, twice a year. Borrowers will have up to 6 months to pay off the debt through payroll deductions at an interest rate of 24.99 percent.

"The rate is lower than 36 percent that was advocated by leading interest groups and lower, far lower than the predatory rates of 365 percent in Virginia last year," Kaine said.

The loan program is backed by grant money from the Commonwealth Virginia Campaign - money contributed by state employees, to help state employees and requires the completion of an online financial fitness course and exam.

"Do it in a way that can encourage those seeking the loans to become more financially literate and not get into cycles of debts," said Kaine.

State employees must apply online and while this specific program is restricted to current state employees, Governor Kaine hopes it will serve as a model for other private companies to follow suit.

(c) 2009. WWBT, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

  • Latest news from NBC12.comNEWSMore>>

  • Laughter, tears as former first lady Barbara Bush remembered

    Laughter, tears as former first lady Barbara Bush remembered

    Saturday, April 21 2018 12:04 AM EDT2018-04-21 04:04:04 GMT
    Saturday, April 21 2018 11:17 PM EDT2018-04-22 03:17:16 GMT
    (AP Photo/Evan Vucci). Mourners pause as former U.S. first lady Barbara Bush lies in repose during the visitation of former first lady Barbara Bush at St. Martin's Episcopal Church, Friday, April 20, 2018, in Houston.(AP Photo/Evan Vucci). Mourners pause as former U.S. first lady Barbara Bush lies in repose during the visitation of former first lady Barbara Bush at St. Martin's Episcopal Church, Friday, April 20, 2018, in Houston.

    As the outpouring of tributes continues for Barbara Bush, the general public can pay its respects to the former first lady.

    More >>

    As the outpouring of tributes continues for Barbara Bush, the general public can pay its respects to the former first lady.

    More >>
  • Trump considering pardon for late boxer Jack Johnson

    Trump considering pardon for late boxer Jack Johnson

    Saturday, April 21 2018 3:44 PM EDT2018-04-21 19:44:16 GMT
    Saturday, April 21 2018 11:05 PM EDT2018-04-22 03:05:41 GMT
    Stallone, who starred in the 1976 boxing film "Rocky" and several sequels, is a supporter of the president and attended Trump's New Years' Eve party at Mar-a-Lago in 2016. (Source: CNN/Twitter)Stallone, who starred in the 1976 boxing film "Rocky" and several sequels, is a supporter of the president and attended Trump's New Years' Eve party at Mar-a-Lago in 2016. (Source: CNN/Twitter)

    President Donald Trump says he's considering "a Full Pardon!" for boxing's first black heavyweight champion more than 100 years after Jack Johnson was convicted by all-white jury of "immorality" for one of his...

    More >>

    President Donald Trump says he's considering "a Full Pardon!" for boxing's first black heavyweight champion more than 100 years after Jack Johnson was convicted by all-white jury of "immorality" for one of his relationships.

    More >>
  • Thousands sing 'Happy Birthday' to Queen Elizabeth II

    Thousands sing 'Happy Birthday' to Queen Elizabeth II

    Saturday, April 21 2018 6:54 AM EDT2018-04-21 10:54:10 GMT
    Saturday, April 21 2018 10:16 PM EDT2018-04-22 02:16:16 GMT
    (Toby Melville/Pool Photo via AP). Britain's Queen Elizabeth raises her glass during speeches at The Queen's Dinner, during the Commonwealth Heads of Government Meeting at Buckingham Palace in London, Thursday, April 19, 2018.(Toby Melville/Pool Photo via AP). Britain's Queen Elizabeth raises her glass during speeches at The Queen's Dinner, during the Commonwealth Heads of Government Meeting at Buckingham Palace in London, Thursday, April 19, 2018.

    Queen Elizabeth II is marking her 92nd birthday with a star-studded concert in London.

    More >>

    Queen Elizabeth II is marking her 92nd birthday with a star-studded concert in London.

    More >>
  • Trending StoriesTrending StoriesMore>>

  • Delta passenger fined $500 for apple

    Delta passenger fined $500 for apple

    Saturday, April 21 2018 1:01 PM EDT2018-04-21 17:01:03 GMT
    Saturday, April 21 2018 6:45 PM EDT2018-04-21 22:45:42 GMT
    adlock's healthy snack turned into a tough reality to stomach. (Source: KDVR/CNN)adlock's healthy snack turned into a tough reality to stomach. (Source: KDVR/CNN)

    Crystal Tadlock is not happy about the fine she said

    More >>

    Crystal Tadlock is not happy about the fine she said

    More >>
  • 'Austin Powers' star Verne Troyer dies at age 49

    'Austin Powers' star Verne Troyer dies at age 49

    Saturday, April 21 2018 4:51 PM EDT2018-04-21 20:51:28 GMT
    Saturday, April 21 2018 6:03 PM EDT2018-04-21 22:03:39 GMT

    Verne Troyer, an actor famous for his role as Mini-Me in the "Austin Powers" trilogy, has passed away.

    More >>

    Verne Troyer, an actor famous for his role as Mini-Me in the "Austin Powers" trilogy, has passed away.

    More >>
  • Judge accused of abusing, berating defendants

    Judge accused of abusing, berating defendants

    Saturday, April 21 2018 7:20 AM EDT2018-04-21 11:20:28 GMT
    Saturday, April 21 2018 7:30 AM EDT2018-04-21 11:30:55 GMT
    Judge Merrilee Ehrlich has stepped down after being accused of berating defendants. (Source: WSVN/CNN)Judge Merrilee Ehrlich has stepped down after being accused of berating defendants. (Source: WSVN/CNN)

    A judge accused of "aggressive and tyrannical" behavior has stepped down from the bench.

    More >>

    A judge accused of "aggressive and tyrannical" behavior has stepped down from the bench.

    More >>
Powered by Frankly