08.430 Employee Emergency Loan Program

Chancellor

Updated April 2024 supersedes Business Affairs Policy 05.110, "Employee Emergency Loan Program". Effective March 22, 2006 supersedes "Employee Emergency Loan Program". Effective July 1, 1993

University Business Practices

Emergency Loan Request and Authorization for Payroll Deduction form

Human Resources

Policy Details:

1. Purpose

   The purpose of the Emergency Loan Program (ELP) is to provide a means of immediate financial assistance in the form of a short-term emergency loan for university employees who meet the policy criteria. Examples of situations warranting the use of an emergency loan may include but are not limited to: a family medical emergency, threatened foreclosure, eviction or rent arrears from primary residence, emergency automobile repairs, or termination of utilities.

2. Scope

   Emergency loans are available to permanent and time-limited UNCW employees with at least twelve months of continuous UNCW employment. Emergency loans are not available to temporary or student employees.

3. Policy

   1. General Statement

      1. Only one emergency loan will be issued to an employee in any 12-month period.

      2. The loan amount must be requested in $50 increments with the minimum loan amount being $100 and the maximum loan amount being $500.

      3. The loan must be fully repaid before a new loan request is considered.

   2. Repayment of Emergency Loan

      1. All loans must be repaid through payroll deduction, in equal installments, not to exceed twelve installment payments beginning with the next available payroll cycle. Note: Funds for the ELP are limited. Employees are strongly encouraged to use the shortest loan payback period possible so that the ELP funds are available for use for other employees seeking financial assistance through the program.

      2. 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. Any remaining balance owed will then require immediate payment from the employee via check or money order. Failure to repay the loan may result in collection actions.

   3. Loan Application Process

      1. Employees seeking an emergency loan must submit an Emergency Loan Request and Authorization for Payroll Deduction form.

      2. Loan requests are reviewed by the Human Resources ELP Coordinator. The ELP Coordinator will notify the employee in writing regarding the approval or denial of their emergency loan application once the loan application has received final review approval or denial from the Director of Benefits or their designee.

      3. If approved for an emergency loan, the loan amount requested will be processed through Accounts Payable. Payment to the employee will take approximately one week from the approval date of the loan.

      4. All requests for loans from the ELP will be kept confidential. No record of this loan will be placed in the employee's personnel file unless the employee fails to repay the loan as arranged.