Emergency Loan Fund

Policy 603.18

Introduction

1.1 There may be occasions when emergency circumstances, defined as unforeseen,unplanned, and unavoidable events, demand immediate attention and require an employee to secure funds on short notice. The Emergency Loan Fund (ELF) has been established to assist Appalachian State University (the "University) employees with an alternative and convenient means of borrowing money during times of emergency or unexpected situations which create a financial hardship for the employee. Zero interest ELF loans are now available for employees with minimal payments to be made through monthly payroll deduction. The ELF program is not competing with lending institutions in any way, but rather providing a quick and easy way to offer financial assistance to employees during an emergency situation.

Scope

2.1 This policy applies to all permanent SPA or EPA teaching or non-teaching employees who are experiencing a personal financial hardship.

Policy and Procedure Statements

Eligibility

4.1.1 An employee wishing to apply for an ELF loan must:

1. be a permanent SPA or EPA teaching or non-teaching employee with a minimum of one-year continuous University service.
2. have an immediate need for funds which constitutes a personal financial hardship/financial emergency and have no other source of funds available within the time necessary to act.
3. be actively employed at the time the loan is requested.

Guidelines

4.2.1 An employee in need of financial assistance must submit an official ELF Loan Request Form to the Employee Relations division of Human Resource Services. An employee may only request one loan per 12-month period(from date of request). Loan must be fully repaid before the employee is eligible for another ELF consideration.

Loan Amounts and Interest Rate

4.3.1 Amount of Loans: $50 minimum; $750 maximum. Interest Rate: None. The amount requested should be based on the specific amount of need.

Repayment

4.4.1 Repayment is set up through payroll deduction and begins with the second payroll check following receipt ofthe loan. Repayment must not exceed ten (10) monthly pay periods from the date of the first payroll deduction with installments of not less than $25 per month but not more than $75 per month, depending on the loan amount. Early Repayment: If an employee has an ELF loan and wishes to pay in full at any time during the term of the loan, s/he may do so without any penalty whatsoever. Termination of Employment: If an employee should terminate employment with the University for any reason before the entire loan is repaid, the outstanding balance will be due and payable and will be deducted from the final paycheck. If there is an insufficient gross amount to deduct the remaining balance, the employee will be responsible for remitting the remaining balance to ASU within 30 days of separation.

What is Considered an "Emergency?"

4.5.1 An emergency is considered to be severe financial hardship for which the employee has an immediate need.

4.5.2 Examples of Emergency (Approved) Situations:

1. Automobile Repairs
2. Childcare Past Due
3. Emergency Travel
4. Family Medical Emergency
5. Unexpected Home Repairs
6. Loss of Household Income
7. Rent or Mortgage Past Due
8. Taxes Past Due
9. Utilities Termination
10. Other needs will be considered on an individual basis

4.5.3 Examples of non-emergency (unapproved) situations:

1. Personal Purchases (e.g., Christmas or birthday gifts,new clothes, etc.)
2. Vacation Money

How To Apply/Assistance Provided

4.6.1 Employees must complete an ELF Loan Request Form and submit it to the Employee Relations area of Human Resource Services for review. Forms are available online and also from the Office of Human Resource Services/Employee Relations division, Founders Hall. The ELF Coordinators are committed to the success of the program here at Appalachian and will be more than happy to assist employees with completion of the ELF Request Form and to answer your questions. Please call anytime Monday through Friday, 8:00a.m. to 5:00p.m. (Extension 6624).

Loan Processing Time

4.7.1 Emergency loan requests will be reviewed by the ELF Coordinators and will ordinarily be processed within five (5) working days from time of submission ofthe completed ELF loan Request Form. The ELF Coordinators consist of three representatives from the Office of Human Resource Services. Once the loan has been approved, an ELF Coordinator will contact the employee.

Confidentiality

4.8.1 All requests for loans through the ElF program will be kept confidential. No record of loans will be placed in the employee's personnel file. No one in your department will know if you have applied for and been denied an emergency loan;however,if you have applied for and received a loan,anyone in your department who has access to standard payroll deduction reports will have access to this information.

Additional References

Emergency Loan Fund (ELF) Request Form and Payroll Deduction Authorization Form

Contact Information

Employee Relations Division of the Human Resource Services

Revision Dates

April 20, 2012