UCR

UCR Policies and Procedures

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Rescind (03/311/2017)

Visit policy.ucop.edu/doc/3410225/AM-E526-48

Campus Policy Number 650-75

Staff Employees' Emergency Loan Fund

Policy Owner: Student Business Services

Effective: 9/10/03

  1. OVERVIEW:
  2. Guidance regarding the Staff Emergency Loan Program and eligibility.

    1. SCOPE:
      • Staff Emergency Loan Eligibility and application process
    2. OBJECTIVE:
      • Define the terms for Eligibility
      • Clarify the application process
      • Defines the term "Emergency" as it applies to this program
    3. BACKGROUND:
    4. In September 1970, The Regents approved the establishment of an emergency loan fund for UC employees. The purpose of the fund is to provide loans to University employees who have an immediate need for funds as the result of an emergency and have no other source of money available within the time necessary to act, or who have a dire personal financial hardship and cannot obtain a loan from a credit union or comparable lending institution. The Employee Emergency Loan Fund is not intended to compete with local credit unions or other lending institutions; it is intended to fill the needs of University employees that are not being met by those sources.

    5. POLICY & PROCEDURES:
      1. POLICY:
      2. Employee Eligibility

        The Staff Emergency Loan Program is for staff employees appointed to work 50% time or more, who:

        • Are in need of immediate funds due to a sudden or out-of-the-ordinary emergency expense and have no other source of money available within the time necessary to act.
        • Have a personal financial hardship and cannot obtain a loan from a credit union or comparable lending institution (documentation of denial is required).

        Students with need for an emergency loan can apply for assistance through the Financial Aid Office. Academic employees should contact the Executive Vice Chancellor's Office.

        In the event that a staff employee's payroll check is delayed due to University error, he/she may qualify for a Staff Emergency Loan, free of interest, to be paid in one lump-sum payment due the following pay period.

        Following are types of situations which meet the policy criteria for an "emergency":

        • The need was occasioned by an unforeseeable event.
        • The need is non-recurring.
        • Paycheck past due because of error in processing forms.
        • Hardships to new employee in adapting to monthly pay period.
        • Death in family where employee must travel some distance to attend funeral.
        • Theft of available cash.
        • Unusual expenditure for auto repair to enable employee to get to work.

        Following are types of situations which do not meet the policy criteria for an "emergency":

        • Predicted or recurring bills such as utilities.
        • Routine auto maintenance and upkeep.
        • Insurance, license plates, taxes, etc.
        • Moving expenses.
        • Vacations, Christmas expenses.
        • Spouse's business expenses.
        • Home repairs.
        • School registration fees.
        • Annual furloughs.

        Loan Ceilings, Interest Rate, and Repayments Terms

        The maximum that may be borrowed is $1,000.00 and must be repaid via payroll deduction.  The repayment period must be 12 months or less and will be determined by Student Business Services based on the amount borrowed. The interest rate is the annualized STIP rate plus an administrative fee of .25%.  All loans will be due and payable upon termination of employment. 

        The loan fund is limited in size, and the needs for loan funds are significant. New employees and first-time borrowers will be given first consideration.  A second loan may not be granted as long as there is a balance on the first loan.

        Documentation of the emergency expense will be required.  Please note that if an employee submits any fraudulent information, it will result in permanent ineligibility for this loan program.

      3. APPLICATION PROCESS:
      4. Applications are available on the Student Business Services website at www.sbs.ucr.edu

        1. Please print and complete the application entirely, from "Date" to "Amount of Request", briefly documenting the reason for the request.
        2. Please fax this completed application with documentation of the expense and copy of denial letter from lending institution to Sue Chiuminatta or Asirra Suguitan at x3576 or return to our office at:
        3. Student Business Services
          2148 Hinderaker Hall

        4. If application is received in our office prior to 2 p.m., Monday through   Friday, the check should be available after 3 p.m. two days after the day submitted. If the check arrives to our office earlier than expected, we will contact the employee to let them know it is available.
        5. REFERENCES:
        6. FREQUENTLY ASKED QUESTIONS:
          • We are buying a home and need money for closing costs.  Do I qualify for a Staff Emergency Loan?
            • No, closing costs should be a planned budgeted expense when buying a home, and are not considered an "emergency" expense.
          • I am in the process of separating from my spouse and need to relocate.  Does this qualify for an Emergency Loan?
            • Student Business Services will make a determination on a case-by-case basis, using the criteria in section 3 of this policy.
          • A few months ago I had extensive car repair bills to replace my transmission and motor and got behind on my other bills.  Do I qualify for a Staff Emergency Loan?
            • After receiving the appropriate documentation, an evaluation will be determined by Student Business Services on a case-by-case basis.
          • I have been off on medical leave and my workman's compensation had been delayed.  Do I qualify for a Staff Emergency Loan?
            • No. To qualify for an Emergency Loan you must be on pay status at least 50% to ensure loan repayment through payroll deduction.
        7. FEEDBACK:
        8. Please send questions or comments via e-mail to: Sue.Chiuminatta@ucr.edu or Asirra.Suguitan@ucr.edu or call The Student Business Services Office at X8-3205 if you have any questions.