As the coronavirus pandemic continues to extend pass expectations, many consumers and small businesses are struggling. Many banks and financial institutions are doing their part to help during these times.
That is because they understand that providing support on multiple levels, giving both their customers and the local community financial assistance and accurate information.
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Mortgage Relief
Because many businesses, corporate and small, have been effected by the lack of consumers leaving their homes, they have begun to lay off their employees.
This results in individuals losing their job and their stable stream of income. the TIAA and other banks are providing temporary payment forbearance for monthly mortgage and home equity line of credit payments. Even those with home loans in process will receive aid.
Community Assistance
Banks and financial institutions know this, their community is everything. To show their gratitude during this time of need, they are offering assistance to their respective communities. Some examples include Truist launching Truist Cares. This initiative includes $25 million in pledged philanthropic support aimed at funding medical supplies, basic needs and financial hardship relief across the country.
USAA and the USAA Foundation, Inc. have their own nonprofits spanning across the country committing nearly $2.3 million to fight the pandemic. These funds will be used to help provide meals and emergency financial aid for military families, care packages for military members deployed overseas, and the development of practices to respond and recover from the crisis.
HSBC has also made significant investments in local communities through many philanthropic activities, such as a $25 million donation fund to support medical response, food security and protection for the most vulnerable in communities around the world.
Credit Card Payment Deferral
With many losing their jobs to the coronavirus pandemic and other reasons, USAA, along wit many other banks have started doing deferrals of minimum payments for up to three months. This will help many individuals get back on their feet and not worry about bills during this time.
Small Business and Commercial Business Support
As a form of direct financial relief, the CIBC has issued a detailed description of how it planned to help its U.S. customers. One method is by offering loan payment deferral for those experiencing financial hardship for up to four monthly payments with no credit bureau impact for small businesses.
Additionally, existing customers can apply for an economic hardship loan. CIBC is working with commercial clients on an individual basis to provide some form of financial aid.
Student Loan Relief
Sallie Mae is offering student loan payment suspension for up to three months without any impact to credit standing for those experiencing financial difficulties. Other assistance includes student loan rate and term modification.
No Early Withdrawal Penalties
Citibank, BBVA and BMO Harris are waiving penalties for early certificate of deposit withdrawals, allowing customers to tap into their available assets to help them during these difficult times.
No Transaction or Software Fees
A major way that banks are helping their customers is through waiving consumer and business banking fees.
For small-business customers, U.S. Bank is waiving transaction fees on Zelle transactions as well as reducing rates on small-business loans and lines of credit. For businesses that want to move their business online, they are waiving monthly software fees and setup costs for their Converge and Talech e-commerce solutions through September 2020.
COVID-19 Resources and Accurate Information
Not much is known about this illness and accurate information is crucial during this time. Similar to other banks, Chase, Wells Fargo and U.S. Bank have a resource page that gives their customers more information.
Chase’s COVID-19 resource page provides a detailed list of assistance programs for consumers and businesses to help everyone get through this pandemic. They provide comprehensive information about stimulus payments, government aid and more.
Business customers get their own Chase resource page. Going beyond just financial assistance, the business resources include articles, webinars and other content directed at helping businesses sustain themselves through these difficult times.
Auto Loan Deferment
Just got a new car? Worry not because financial institutions and banks are working hard to make sure their customers are taken care of. For example, Ally’s existing auto loan customer will be allowed to defer payment for up to 120 days. No late fees or finance charges will accrue during this time. New auto customers will have the option to defer their first payment for 90 days.
Video Help Guides
Banks have even gone the extra mile to make videos that will guide their customers through the process of getting financial assistance. Such banks include Bank of America, since they know that their customers won’t be able to physically visit due to measures put in place to protect the public. This includes government programs and other sources where they might be able to get additional funding during this difficult time.
Advances on Stimulus Checks
With stimulus checks rolling out through the past couple of months to aid Americans, Chime was at the front in assisting their customers. The e-bank lived up to its promise, depositing money in customer accounts ahead of their stimulus checks’ arrival.
Helping Small Businesses Get The Money They Need
During the pandemic, financial institutions and banks have teamed up with the Small Business Administration to begin lending. With that being said, they are also major contributors to the Coronavirus Aid, Relief and Economic Stability (CARES) Act, helping small businesses to get the funding they need to pay their employees and stay in business.
Union Bank is partnering up with the Bankers Small Business Community Development Corp. of California to launch a loan program to help American small businesses. This is specifically targeted at the small businesses that weren’t able to get any portion of the government’s financial assistance programs.
Consultations and Personal Assistance
Wells Fargo, Union Bank, Capital One, CIT Bank, Discover and more are asking their customers to call in case they need any financial assistance. They are even offering 24/7 one-on-one consultations and personal assistance for customers experiencing any hardships due to COVID-19.
Zions Bank is directly reaching out to customers who could be affected during this time and communicating the bank’s readiness to assist them.
Public Health Support
Most importantly, banks have been giving a hand in public health. An example is BBVA procuring $500,000 in essential materials and other public health support for nonprofit partners. This includes supplying people with gloves, hand sanitizers and N-95 masks. They will distribute them throughout May and through its existing partners.
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Bottom Line
The COVID-19 pandemic has hit individuals and small businesses hard. With this in mind, banks and financial institutions have come together to offer financial assistance to make sure their customers and community is well taken care of during this time.
For more information on aid, take a look at your local bank’s website to learn more about the services they are offering. For more posts like this, check out our list of bank guides.
For banking options, see our list of the best savings & money market accounts on top of the latest bank bonus promotions!
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