With coronavirus still prevalent in society, many people and small businesses are struggling. However, amidst the pandemic, banks are doing their part with what they can to help during these times.
In this guide, we will breakdown everything you need to know on how banks are doing their part to help customers during the pandemic.
Banks value the communities that they serve and for this reason, lots of banks are giving back to the community by providing Community Assistance. USAA Bank is one bank that has been using their nonprofits to help fight against this pandemic. Money is being used to help provide meals and emergency financial aid for veterans and military families.
Asides from USAA, there are many banks in local communities that are dong their part. Whether it be raising money for medical response, food security, or care packages, banks are doing what they can to help the communities in which they serve.
No Transaction Fees
One way in which banks are helping customers is by eliminating certain fees. By eliminating certain fees, it helps keep a good customer and bank relationship by the bank not losing their customers.
For small business owners, banks such as US bank are waiving transaction fees on Zelle, overdraft fees, and reducing rates for small business loans and lines of credit. Banks are also trying to move more of their business online and as a result, are offering little to no software fees and setup costs for eCommerce platforms.
With the pandemic causing businesses to lose money, companies are needing to lay off employees. With people losing their job, this results in a loss of income .
As a result of layoffs, banks are providing temporary payment forbearance for monthly mortgages and home equity line of credit payments. This also includes anyone in the process of getting a home loan
Student Loan Relief
Big companies such as Sallie Mae are offering student loan payment suspensions for up to three months. During these 3 months, there will be no credit impact for those that fit this criteria.
Other financial assistance that is being done are student loan rate reduction and loan term modification .
Helping Small Businesses Get The Money They Need
Banks have partnered with Small Business Administration to aid with lending. There are major contributors to the Coronavirus Aid, Relief and Economic Stability (CARES) Act, that are helping small businesses get the funding they need to pay their employees and stay in business.
The Bankers Small Business Community Development Corp. of California has partnered with Union Bank to offer a loan program to assist American small businesses. This is primarily for small businesses that did not receive any funding or assistance from the government aid programs.
Video Help Guides
Banks are doing the most they can to help customers have a smooth transition to online banking. One way in which they are smoothing the transition is by providing video help guides that offer assistance on how to use the digital banking software and systems. Be sure to check out some of these videos if you are having problems finding your banking needs. If you need to, you can always call your bank’s customer service rep to help you with any of your financial needs.
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