How Altra Federal Credit Union is supporting its members through these challenging times
Small businesses reeling in the wake of the economic crisis caused by Covid-19 have the chance to receive a helping hand. $377 billion of the massive $2 trillion stimulus bill, known as the CARES ACT, is earmarked specifically for small businesses, mostly in the form of two low-interest loan programs: the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).
The funding comes at a critical juncture for businesses, with all non-essential shops rendered closed in the state of Minnesota. Any business under 500 employees can apply, with normal guarantor and financial review guidelines waived.
At Altra Federal Credit Union, lenders are working tirelessly with members to interpret the CARES ACT and answer any questions that may arise. One of Altra’s top lenders says listening and understanding the needs of members is one of the most important parts of the job, and he’s had many conversations with members in the past two weeks.
“The day-to-day conversations I’m having with members are twofold: how do I keep my business alive, and what’s forgivable regarding the Paycheck Protection Program?,” says Mike Nickel, senior VP of lending at Altra.
(According to the Small Business Administration’s website, those loans are completely forgivable if used for payroll, mortgage, rent, and utility costs.)
Altra started submitting applications to the Small Business Administration (SBA) as soon as the application portal opened up on April 3rd. More than $141 billion in loans have already been approved nationwide, but problems with the portal have slowed the process down — meaning Altra must think outside the box for its business partners that need help.
“We’ve got a lot of business owners who, frankly, are scared to death,” says Nickel. “A lot of them have seen their revenue streams go from normal to zero in a very short period of time.”
2020 Relief Loans from Altra
In addition to assisting in the CARES ACT application process, Altra has deferred payments on over 2,000 of its loans, totaling over $70 million. It’s just one of the strategies implemented by Altra to help its business partners during the Covid-19 crisis — re-structuring loans, working capital, and CARES ACT funds are all options on the table.
On the retail side, Altra recently introduced their “2020 Relief” loan exclusively for members facing financial hardship caused by COVID-19. Qualifying members who fill out an online application will receive a no-interest loan up to $3,020, with payments deferred until July 15. It’s one more way to look out for those who need help, but slip through the cracks of the CARES Act.
“We’re still there for our members even though we’re not face to face,” says Jolene Vaselaar, Altra’s associate VP of retail operations. “We’re still available to take calls and help them with their needs — it’s just a different situation right now.”
With nearly 40 years of experience in the banking industry, Nickel has seen his fair share of ups and downs in the economy. He says Altra’s shown the ability to prioritizing sound financial decisions in multiple ways, whether it’s in the projects they decide to support or the counseling and advice bankers give to members.
Nickel says anyone with questions or concerns about their finances should reach out to their respective banker or lender — and if they don’t give appropriate responses, Altra is just a phone call away. As we enter our second month in this new way of life, Altra is ready to do whatever it can to stand by its members, employees, and the community at large.
“We’re just doing what we can to keep everyone safe and healthy — our members, our co-workers, everyone,” says Vaselaar.
Additional information on how Altra is supporting its members and staff through Covid-19 can be found here.
Cover photo licensed through Getty
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