Policy

POLICY

The Emergency Loan Program furnishes short-term loans from $300 to $750 to meet the specific emergency needs of those employees of Johns Hopkins Health System Corporation (JHHSC) and The Johns Hopkins Hospital (JHH) who satisfy the criteria as defined in this policy.  The loans are underwritten through an agreement between the Department of Human Resources and the Johns Hopkins Federal Credit Union (the Credit Union). 

The loan is provided by the Credit Union and subject to the current Credit Union rate of interest.  The maximum period of the repayment of the loan is twenty six (26) weeks.  The loan may be repaid early in order to reduce interest charges.  In addition, the loan may be obtained independent of all other commitments that an applicant may have with the Credit Union (no Debt Ratio or Credit Rating is calculated by the Credit Union for applicants).

The loan will be available only if the applicant meets the criteria for a loan, as assessed by the HR/Benefits Specialist.  Exceptions may be made to the program as determined by the Director of Benefits.

ELIGIBILITY

1. The applicant must be a regular full time employee, scheduled to work 30 hours or more per week, in good standing with JHHSC/JHH (this includes: having no active serious discipline or anticipated discipline, suspension or termination; has not given “notice” or announced intention to resign; has not declared bankruptcy and/or whose employment is currently projected to continue in an “active” status for a minimum of the next six (6) months).

2. The applicant must have been employed for a minimum of one year.

3. It must be determined that an actual emergency exists, to be supported by the applicant in the form of an eviction notice along with a signed copy of lease and rental agreement or “turn-off” (i.e. gas/electric notice, and/or other similar proof of need) for a property that the applicant owns.

4. If there is a previous loan record, the circumstances of the new emergency will be evaluated to ascertain the validity of the request.

5. The applicant has not been granted or received another Emergency Loan within the previous twelve (12) month period.

6. After two emergency loans, the applicant is required to obtain financial counseling through the Faculty and Staff Assistance program (FASAP) before applying for a third emergency loan.  FASAP will provide the applicant with a note (verifying counseling) that is required by the HR/Benefits Specialist upon applying for a third loan.

7.  The applicant must not have an outstanding gift shop deduction.

Conditions and Terms

1. The amount for which a loan may be granted is a minimum of $300, maximum of $750.

2. The maximum period of the repayment of the loan is twenty six (26) weeks.

3. All loans are made payable to the creditor.

4. The applicant must be a member of the Johns Hopkins Federal Credit Union, or be willing and able to become a member of this organization, in order for the loan to be repaid by the applicant through authorized payroll deductions from the wages of the applicant.  The minimum balance requirement for the Credit Union may be included as part of the loan.

5. An applicant who resigns his or her employment, or whose employment is terminated prior to the completion of their loan repayment schedule, will agree (in advance of the issuance of the loan) to have any and all monies owed under the terms of the loan deducted from his/her final paycheck(s), and/or from any terminal pay (i.e. vacation, PTO, etc) which may be owed them by JHHSC/JHH.

6. If the applicant defaults, or if employment terminates prior to the full repayment of the loan, the applicant’s primary department at the time the loan was made will be responsible for replenishing the Emergency Loan Fund (to the full extent of the balance owed) from the department’s budget.

7. An applicant will be limited to receiving only one (1) Emergency Loan per twelve month period.

8. Emergency Loans will be considered for the following (but not limited to) purposes:

• Eviction or rent late by one month requires official Court Summons (eviction notice).  Eviction notice must show name, address, and telephone number of the landlord.  Must provide a signed copy of the rental agreement and/or lease.
• BG&E bill requires official cut-off notice.
• Telephone service bill requires official turn-off notice.
• Mortgage loan requires a late notice showing amount overdue or late and future foreclosure.  Must be on mortgage company stationary. 
• Moving expenses due to circumstances beyond the applicant’s control.
• Auto repair bill requires a signed estimate for repair.  Vehicle must be only means of transportation.
• Funeral expenses - payable due to death of immediate family member as defined in the Bereavement section in the Paid Time Off Policy or as defined by the Collective Bargaining Agreement.
• Car payment to prevent repossession.
• Past due water bill.

PROCEDURES

Applicant 

1. Obtains Emergency Loan Application package from HR/Benefits Specialist
2. Completes Emergency Loan Application, Consent for Release of Confidential Information Form and Credit Union Application 
3. Obtains supervisor's and manager/director's signature on the Emergency Loan Application Form (must have two signatures)

Supervisor and Manager/Director       

 Signs Emergency Loan Application Form, indicating applicant’s continuing employment potential for a period of at least six months from the date of the application.  If unable to confirm this, returns the form unsigned to the applicant.  If the applicant should terminate employment with JHHSC/JHH, it is the Supervisor's responsibility to notify the HR/Benefits Specialist immediately.

Applicant 

 
Returns the completed Emergency Loan Application, and Consent for Release of Confidential Information.

HR/Benefits Specialist

Reviews completed forms and reason for loan.  If all conditions of the loan are met, advises applicant to take the Loan Application to the Credit Union along with the Emergency Loan Disbursement Recommendation Form and all supporting documentation.

Applicant  

Delivers Emergency Loan Application and Emergency Loan Disbursement Recommendation Form to the Credit Union.

Credit Union 

1. Processes Emergency Loan Application and Credit Union Application, if applicable.
2. Advises Payroll Department of loan payroll deduction amount.

Payroll Department 

Deducts loan amount for the length of the loan.  If the applicant terminates prior to the completion of the loan, any and all monies owed under the terms of the loan will be deducted from the applicant's final paycheck, and/or from any vacation pay which may be owed to the applicant by JHHSC/JHH.

Credit Union 

Advises the HR/Benefits Specialist monthly of any applicants who defaulted on the repayment of the Loan.

HR/Benefits Specialist

Reimburses the Credit Union for any unpaid loan balance for the terminated applicant and charges the amount to the applicant’s department cost center.

SPONSOR

Vice President, Human Resources

REVIEW CYCLE

3 years

APPROVAL

Pamela D. Paulk                               10/1/03

Vice President, Human Resources     Date

Amendment Record