Emergency Loan Program

DUE TO COVID-19, AN APPROVED EMERGENCY LOAN MAY TAKE UP TO 2 1/2 WEEKS TO BE DIRECT DEPOSITED. Paper checks are not being used for these loans.

The Emergency Loan Program was established to provide University employees with an alternative to borrow money for short-term emergency situations.

Examples of situations warranting the use of an emergency loan, may include, but are not limited to: a family medical emergency, threatened foreclosure or eviction from a primary residence, emergency automobile repairs, or termination of utilities.

Eligibility

Permanent EHRA or SHRA employees employed with UNC Chapel Hill with at least 12-months of continuous university service are eligible to apply for an interest free loan of no more than $500. Temporary employees, UNC Healthcare employees and UNC System Office employees are NOT eligible for an emergency loan through UNC Chapel Hill.

Only one loan will be issued to an employee during a 12-month period. The 12 month period begins on the date the employee receives payment from Disbursement Services. There must have been no previous emergency loans or outstanding loan balances in the previous 12 month period prior to applying for a loan.

Applying for a Loan

Employees who need to apply for an emergency loan must submit an Emergency Loan Request & Authorization for Payroll Deduction form along with supporting documentation. These could include medical bills, mortgage/rental statement, emergency car repair bill/estimate, or utility statement that are less than 30 days old. The documentation should indicate a past due status. In signing the loan request form, the employee is affirming there are no other resources available for financial assistance, including his/her lending institution.

Loan requests are reviewed by the Benefits & Leave Support Center in the Office of Human Resources. Employees, if approved for an emergency loan, may choose to receive a paper check or have the money direct deposited to their primary account on file for their payroll. The Benefits & Leave Support Center is available to assist employees with completing the Emergency Loan Program forms. DUE TO COVID-19, AN APPROVED EMERGENCY LOAN MAY TAKE UP TO 2 1/2 WEEKS TO BE DIRECT DEPOSITED. Only direct deposits are being processed at this time.

Repayment of Loans

All loans must be repaid through payroll deduction, not to exceed 10 biweekly pay periods for SHRA employees or 5 monthly pay periods for EHRA employees. If an employee terminates employment with the University for any reason before the entire loan is repaid, the outstanding balance will be deducted from the employee’s final paycheck.

A copy of the Emergency Loan Request & Authorization for Payroll Deduction form is transmitted to Payroll Services to establish the payroll deduction.

Confidentiality

All requests for loans from the Emergency Loan Program will be kept confidential. No record of this loan is placed in the employee’s file unless problems are experienced regarding repayment of any loans.

Details

Article ID: 131742
Created
Thu 4/8/21 9:15 PM
Modified
Tue 8/9/22 2:49 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
04/24/2015 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Associate Vice Chancellor, Human Resources
Last Review
Date on which the most recent document review was completed.
04/24/2015 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
04/24/2015 12:00 AM
Next Review
Date on which the next document review is due.
12/31/2018 12:00 AM
Origination
Date on which the original version of this document was first made official.
04/24/2015 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Office of Human Resources