USAA issues $150 million in no-interest loans amid government shutdown

USAA has distributed $150 million in no-interest loans to about 45,000 members within just over two days, responding to the ongoing government shutdown. The initiative aims to help military service members, their families, and federal employees as they face potential pay disruptions.

Eligible members who work for affected federal agencies, including active-duty military personnel, can apply for a no-interest loan equal to one net paycheck, up to $6,000. To qualify, members must have received an eligible direct deposit into a USAA checking or savings account within 30 days before the shutdown began. The loan offers flexible repayment terms of up to 90 days.

“Efforts like this are why we exist as an Association, to be there for our members when they need us most,” said Michael Moran, President, USAA Federal Savings Bank. “Delivering this level of support in under two days demonstrates our commitment to providing our members with peace of mind during this difficult time. Our team is currently processing loan applications at a very high rate per hour and we continue to stand ready to support our members. This is the value of membership.”

In addition to the loan program, USAA has processed tens of thousands of payment relief offers for its banking and insurance products. These include extensions for loan and credit card payments as well as insurance payment extensions and fee waivers.

USAA also recommends that service members seek further assistance from military aid societies. Since 2016, USAA has donated over $40 million to organizations such as Army Emergency Relief, Navy-Marine Corps Relief Society, Air Force Aid Society, Coast Guard Mutual Assistance, Enlisted Association of the National Guard of the United States’ We Care for America Foundation, and American Red Cross Service to the Armed Forces. These groups provide emergency financial help and other resources for service members and their families.

Members can apply for a no-interest loan through the USAA app, website, or by phone. Approved funds are usually available within two business days; most initial disbursements have been delivered in less than 24 hours.

Further details on USAA’s financial assistance programs related to the government shutdown can be found at usaa.com/relief.

Founded in 1922 by military officers, USAA serves 14 million U.S. military members, veterans who have served honorably, and their families. The company is headquartered in San Antonio and employs more than 38,000 people worldwide.