Emergency Loan Fund
(ELF)
**Note changes to ELF
policies as of 10/09/07**
What is the EAP-ELF?
The EAP-ELF is an
emergency loan fund established in 1991 by UM’s EAP Advisory Council to help
EAP clients (active employees) who are experiencing a personal financial emergency and
have exhausted all other avenues for money. Personal questions
regarding your finances will be asked.
What Types of Situations Might
Be Appropriate For The EAP-ELF?
It needs to be stressed
that this is not simply a loan fund but exists mainly to help
employees who have no other way to pay for financial emergencies.
For example:
-
Need
counseling, cannot pay for uninsured portion when services are
rendered.
-
Retainer fee
for lawyer.
-
Single parent whose only car needs repairs. Without a car cannot
come to work.
-
Parent dies unexpectedly out-of-state. Money needed for airline
ticket to attend funeral.
-
Need
a medical procedure. Physician will not proceed without payment of
uninsured portion up-front.
-
New
employees who need funds (up to $250)
until their first paycheck arrives.
-
Unanticipated medical situation puts employee financially behind
and needs money to pay rent/mortgage.
-
Mortgage or rent to prevent foreclosure or eviction.
Who Can Use the EAP-ELF?
All
UM employees experiencing a significant financial hardship and
who:
-
Have
been working at UMaine at least six months (New salaried employees
on a one year contract can only borrow up to $250.00)
-
Have a
personal emergency
-
Have
exhausted all other financial avenues
-
Have
an in-person EAP session if within an hour's drive of UMaine
-
For
employees who are more than an hour away, a telephone meeting
will suffice for the initial meeting. Forms should be downloaded
from the EAP website and submitted by FAX. The promissory note
with original signature must be received before a check is
mailed. Funding by phone will likely take a few days longer
than face-to-face.
How Much Money Can Be Borrowed?
• Can borrow a maximum of $750 per year
• Maximum number of loans per 5-year period is 3
• First time applicants take priority over repeat applicants
• Must pay off each loan in full before applying for another loan
• Checks are made out to up to 2 vendors
• For employees who are not on a 12-month pay schedule, their loans must be paid in full before their break.
What Information Is Needed To
Apply For The Loan?
The process is similar to that of a bank loan, and therefore
examines personal finances. The following
information is needed:
Who Grants Approval?
During a conference call with three (3) members of the EAP Advisory
Council, the EAP counselor presents the following information:
• Reason for the hardship
• Amount of money requested and name of vendor
• Financial information regarding income, balances in bank accounts,
monthly budget, outstanding debt, etc.
Names, gender, work place, or other
identifiers are NOT provided.
(The EAP Advisory council is
composed of two faculty members, two professional, two classified
employees selected by their respective representative bodies, one
representative from Facilities Management and one from Cooperative
Extension, and ex-officio, the Director of Human Resources.)
Approval by three members is needed for a final disposition of a
loan request. If a request is turned down, the applicant may
resubmit additional evidence to support need.
How Confidential Is This
Process?
No names are presented to the Advisory Council members to
insure confidentiality. Information regarding the specifics of an
application that might identify the applicant also remain
confidential. Certain staff members must have knowledge of your name
and contact information, but they do not have access to background
information regarding the need for your request. These include the
EAP Administrative Assistant (for processing), and Human
Resources/Payroll (for payroll deduction).
How Long Will It Take For A
Decision To Be Reached?
A decision on each request is reached within three (3)
working days after the submission of a complete application. Emergencies
will be handled ASAP.
How Are Loans Paid Back?
A promissory note is signed by the loaner authorizing
automatic payroll deductions. All loans must be repaid in full
before the work schedule ends for the year. For example, if an
employee is on a 10-month contract, the loan must be paid in full
before their two months off. Should a recipient
voluntarily or involuntarily terminate employment prior to
completion of repayment, the remaining balance will be garnished
from the recipient’s wages at UMaine and, if necessary, any future
place of employment. Payback of loans (i.e., amount repaid per pay
period) is scheduled on an individual basis and handled by the EAP.
All loans must be repaid within six months (one year for extreme hardship
cases).
If Approval Is Granted, How Is
The Money Received?
The employee will be informed immediately of the approval and
asked to come to the EAP Office to receive the check(s).
All checks are made payable to the vendor. No checks will be
written to the employee.
