|History:||Issued -- March 14, 2002|
|Revised -- August 13, 2014|
|Last Reviewed --|
|Responsible Official:||Executive Project Coordinator, tel. (202) 319-5607|
The University recognizes the unexpected need that employees may encounter for emergency funds in cases of grave personal crisis. As such, this policy defines the authority of the Vice President for Finance and Treasurer to issue short-term (up to one year) emergency loans to all eligible employees (faculty and staff) that are experiencing unusual financial hardship. Eligible employees mean all permanent full-time faculty and staff who have worked for the University longer than one year.
II. Discretionary Authority
The Vice President for Finance and Treasurer has the authority to issue procedures and regulations for University-issued Emergency Employee loans which are issued at the discretion of the Vice President for Finance and Treasurer.
III. Legal Obligation
All employees who are issued an emergency employee loan must sign a promissory note and authorize payroll deductions for its repayment. The promissory note shall be a legal, binding obligation of the employee.
An eligible employee may borrow up to 10% of their annual salary or up to $5,000, whichever is less. Employee loans will be issued at a minimum amount of $100 and a maximum amount of $5,000. The total amount due to the University from an employee from all loan programs (such as emergency loans and salary advances) cannot exceed $5,000. Employees are limited to one loan per year and three loans during their career at the University. In addition, any employee that has been issued an emergency employee loan is not eligible to request a subsequent loan until one (1) year has elapsed between the final payment of the previous loan and the new loan request.
V. Interest and Payment Schedules
Loans are based on a maximum term of twelve (12) months starting with the employee's next regular payday. The Vice President for Finance and Treasurer sets the interest rate, which compounds monthly. An employee may prepay all or any part of their obligation at any time without penalty.
If an employee fails to make a scheduled payment, goes on unpaid University leave and does not make payment arrangements, separates from employment at the University, or otherwise fails to fulfill their obligations under the promissory note, the University may, at its option and after any legally required cure period, accelerate the payment obligations and declare the entire remaining unpaid balance immediately due and payable.