AAUP-AFT Short-Term Loan Program for Union Members Participating in the Shared Work Program

Eligibility for Loan Program

1. AAUP-AFT members participating in the shared work program, whose applications for UI benefits are unduly delayed causing members to experience financial hardship.
2. Undue delay is delay in excess of the normal processing time for receipt of UI benefits under a shared work program. Typically, there is a two week lag from the application for UI benefits under the shared work program until receipt of benefits. Any delay of more than two weeks in excess of the typical lag time is considered undue delay.
3. Financial hardship means that a member is unable to pay for basic living expenses, including rent and mortgage payments, healthcare, prescription drugs, taxes, food, transportation, etc. without a loan.

Terms of the Program

1. AAUP-AFT members who qualify for the short-term loan program may receive a loan of up to 10% of their gross annual compensation or $2,100, whichever is less.
2. The loan amount will be determined by the member’s lost income due to a 10% reduction in their workweek for which they have not received UI benefits. The loan will serve as replacement income.
3. A member may apply for more than one loan, but loans to a single member shall not exceed $2,100 in the aggregate.
4. A member receiving a loan shall sign a loan agreement with the AAUP-AFT setting forth the terms of the loan and the terms of repayment.
5. The loan shall be repaid by September 1, 2021, or upon receipt of delayed unemployment benefits, whichever is sooner.
6. The loan shall be without interest.

Loan Application Process

1. Members will submit a Google form with a short explanation or summary of difficulty or delay they have experienced in obtaining UI benefits. The loan application form requires a member to certify that the statements made on the form are true.
2. The AAUP-AFT staff member receiving the form will send to the member a standard email with the required application materials, as well as the loan rules.
3. Once materials are submitted by the member requesting a loan, they will be forwarded to the Loan Review Committee. The Committee shall consist of two Executive Council members appointed by the President and two staff members appointed by the Executive Director. Members of the Loan Review Committee shall sign a confidentiality agreement obligating them to treat documents received by them in support of a member’s loan application as confidential documents.
4. The Loan Review Committee will determine eligibility for a loan and send notice of the Committee’s decision to the member, including the amount of the loan approved. Members eligible for a loan will be sent a loan agreement for their signature.
5. Once a signed loan agreement is received, the member will be issued payment for the approved amount of the loan.