The Alabama Credit Union Association announced that credit unions in Alabama have continued to work to help members through the financial realities of the COVID-19 pandemic.
ACUA is the division of the League of Southeastern Credit Unions & Affiliates representing Alabama credit unions. ACUA has surveyed credit unions in the state three times since the beginning of the COVID-19 pandemic. ACUA is using the results to quantify the ways in which the state’s credit unions have helped consumers through this uncertain time.
Thirty percent of Alabama credit unions responded to ACUA’s surveys. The ACUA reports that the surveys yielded impressive findings.
“The credit unions in our tri-state area have worked tirelessly to support members during a pandemic that has lasted longer and affected people more deeply than expected,” said President of LSCU Jared Ross. “For the better part of half a year, these institutions have continuously stepped up to help members who are grappling with income loss, unexpected healthcare costs and other financial hardships as a result of COVID-19. These are difficult times – and at LSCU, we’re proud to show that our member credit unions have met this difficulty head-on with integrity and compassion.”
The ACUA’s COVID-19 member engagement surveys found that:
- Credit unions in Alabama have granted at least 679 mortgage loan forbearance and extensions for a total of $77.8 million.
- Credit unions in Alabama have granted at least 211 commercial/business loan forbearance/extensions for a total of $75.5 million.
- The credit unions in Alabama have granted at least 45,834 consumer loan payment extensions for a total of $469 million.
- Credit unions in Alabama have granted at least 275 round one SBA Payroll Protection Loans that are SBA approved/guaranteed for a total of $14.6 million.
- Credit unions in Alabama have granted at least 89 round two SBA Payroll Protection Loans that are SBA banrate emergency loans for a total of $178,993.
- Credit unions in Alabama have granted at least 12,242 fee waivers.
These numbers are evolving throughout this crisis. ACUA will continue detailing the numerous ways credit unions across Alabama are helping members afford life during COVID-19.
The Payroll Protection Program (PPP) loans are forgivable, but the SBA has a tremendous backlog of loan recipients seeking forgiveness for their loans. It could take months to work through that backlog so the credit unions and banks are having to service these low interest one percent loans that the recipients never expected to pay back. Some bank regulators want Congress to authorize the forgiveness of the smallest of the PPP loans en masse.
Forgiving loans of less than $150,000 or $100,000 would dramatically give the SBA a reduction in the backlog and allow them to focus on the bigger loans — while clearing much of these PPP loans off the books of banks and credit unions.
The League of Southeastern Credit Unions & Affiliates represents 333 credit unions in Alabama, Florida and Georgia, with a combined total of more than $120 billion in assets and more than 10.3 million members. LSCU provides advocacy and regulatory information; education and training; cooperative initiatives (including financial education outreach); media relations and information; and business solutions for the industry.
New unemployment claims continued dropping last week
There were 8,679 new unemployment claims filed in Alabama last week, slightly fewer than the 8,848 filed the previous week, according to the Alabama Department of Labor.
Of the claims filed between Sept. 13 and Sept. 19, 4,465, or 51 percent, were related to COVID-19. That’s the same percentage as the previous week.
Unemployment benefits could change for some Alabamians
ADOL will begin the review when the current quarter ends on Oct. 3.
Some Alabamians receiving unemployment benefits could see changes in those benefits after the Alabama Department of Labor conducts a required quarterly review and redetermines eligibility, the department said Friday.
The Alabama Department of Labor said in a press release Friday that no action is required by those receiving regular unemployment, Pandemic Unemployment Assistance or Pandemic Emergency Unemployment Compensation.
ADOL will begin the review when the current quarter ends on Oct. 3.
“Some may remain eligible for PUA or PEUC, OR they may be required to change to regular unemployment compensation. Weekly benefit amounts may also change. This depends on eligibility requirements,” ADOL said in the release. “Those claimants whose benefit year ends prior to October 3, 2020, will have their claims reevaluated.”
After the review, if the claimant is determined not to be eligible for regular unemployment compensation, those who qualify may still be able to be paid under PUA or PEUC, and that determination will be made automatically and payment will be issued, the department said in the release.
Claimants must also continue to certify their weeks.
Many claimants are not receiving benefits because they fail to file their weekly certifications, i.e. requests for payment. ADOL cannot pay benefits for weeks that have not been properly certified. Certifications can be done online at labor.alabama.gov or by calling the appropriate number:
- Montgomery – (334) 954-4094
- Birmingham – (205) 458-2282
- Not in Local Area – (800) 752-7389
PUA recipients must file their weekly certifications either by telephone or on the PUA app, at pua.labor.alabama.gov.
Alabama Gulf Coast beaches remain closed for now
Alabama Gov. Kay Ivey announced that beaches will remain closed for now due to ongoing repair and cleanup efforts in the wake of Hurricane Sally.
“Working closely with Gulf Shores Mayor Robert Craft and Orange Beach Mayor Tony Kennon, as well as Commissioner Billy Joe Underwood, the governor has agreed to keep Baldwin County’s beaches closed until Friday, October 2nd,” the governor’s office said in a statement. “This will allow those communities additional time to get their beaches ready for public enjoyment in a safe, responsible manner.”
Mobile County beaches might open earlier than that.
“Likewise, the governor has been in touch with Mayor Jeff Collier, and she is prepared to amend the beach closure order for Mobile County when he signals that Dauphin Island is ready to reopen their beaches,” the governor’s office said in a statement. “At the present time, all Alabama beaches remain closed until further notice.”
Hurricane Sally came ashore near Gulf Shores on Sept. 16 as a category two hurricane with 105 mile per hour winds. Numerous homes, businesses and farms have been destroyed and many more have seen serious damage.
“As of Wednesday night, approx. 37,000 cubic yards of Hurricane Sally debris (equivalent to roughly 1,700 truck loads worth) has been picked up in Orange Beach since Sunday (4 days),” the city of Orange Beach announced. “Kudos to our debris contractor CrowderGulf.”
“I spent Sunday afternoon meeting with senior staff and I believe we will need some time to get our buildings safe for children to return,” said Baldwin County Schools Superintendent Eddie Taylor in a letter to parents. “We live in a very large county. Power may be on in your area and your school may not have any damage, but we cannot open schools unless all schools can open. Our pacing guides, state testing, meal and accountability requirements are based on the system, not individual schools.”
“We have schools without power and for which we do not expect power until later this week,” Taylor said. “In this new age, we need internet and communications which are currently down so we cannot run any system tests. We have physical damage at our schools including some with standing water, collapsed ceilings and blown out windows. We have debris on our properties and debris blocking our transportation teams from picking up students. All of this must be resolved before we can successfully re-open.”
“If everything goes as planned, I expect we will welcome back students on Wednesday, September 30,” Taylor said. “Prior to returning students to school, we will hold two teacher work days to get our classrooms and our lessons plans back on track.”
SNAP replacement benefits coming to three counties hit by Hurricane Sally
Thousands of SNAP recipients in Mobile, Baldwin and Escambia counties are set to receive automatic replacement benefits as a result of Hurricane Sally, the Alabama Department of Human Resources announced Thursday.
Recipients who received their benefits Sept. 1 through Sept. 16 will receive a replacement of 50 percent of their regular monthly benefit. Those who received supplemental pandemic maximum allotment payments will receive a replacement of 30 percent of those benefits.
The U.S. Department of Agriculture Food and Nutrition Service approved the replacement benefits today at the request of DHR. The benefits are intended to replace food purchased with SNAP that was lost to widespread power outages caused when Hurricane Sally made landfall on Sept. 16.
“Our priority is to remove the very real threat of hunger for the many Alabamians who are struggling from the devastation of Hurricane Sally,” said Alabama DHR Commissioner Nancy Buckner. “The first step toward that goal is to replace the food that so many Alabamians lost to the storm. We are actively working to obtain additional resources to provide much-needed relief for the region as it recovers.”
Hurricane Sally caused over 265,000 households to lose power for at least four hours in Mobile, Baldwin and Escambia counties, where approximately 54,000 households will receive SNAP benefits totaling an estimated $8.5 million.
Those recipients should expect to see the replacement benefits automatically loaded onto their EBT cards next week.
The Food Assistance Division of DHR administers the SNAP program in Alabama.
More information about the program can be found at dhr.alabama.gov/food-assistance.