EMERGENCY LOAN FUND (ELF)
What is the EAP-ELF?
Established in 1991, the EAP-ELF is an emergency loan fund to help EAP clients (active employees)
who are experiencing a temporary personal financial emergency and
have exhausted all other avenues to obtain money. The emergency
must be unforeseen, unplanned and unavoidable. Also, the loan fund
is predominantly for one-time use. Personal questions regarding
your finances will be asked.
Who is Eligible for
the EAP-ELF?
·
Full time, active UMaine faculty, salaried and hourly
employees
·
Are under no active disciplinary action
·
Must have an unanticipated event that creates a
financial emergency
·
Have at least 1 year continuous, successful
employment*
·
Have no current or previous unpaid EAP-ELF loans
·
Show evidence to improve personal financial situation
·
Have exhausted all other financial avenues
·
Have an in-person EAP session if within an hour drive
of UMaine
o
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.
*New employees may
be eligible for up to $350.
How Much Money Can Be
Borrowed?
• Maximum of $750 per year
• Maximum number of 3 loans per 10-year period
• Generally a minimum of 12 months between requests
• 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
How Are Loans Paid Back?
A promissory note is signed authorizing automatic payroll
deductions. All loans are typically repaid in six months but in
severe circumstances are repaid within 12 months. It is preferred
that loan payment is completed before work scheduled breaks, such as
summer break.
Upon resignation or termination from employment with UMaine, the
balance on the loan becomes immediately due and payable and will be
deducted from the final paycheck. Unpaid loans will be referred to
the Bursar's Office for collection.
What Types of Situations Might Be Appropriate For the EAP-ELF?
This is not simply a loan fund but exists mainly to help
employees who have no other way to pay for financial emergencies.
Examples of unseen or unexpected situations that may create a
financial emergency (not inclusive):
-
Accident, car or otherwise
-
Lay-off, illness or death of someone who contributes to household finances
-
Major household emergency repairs, e.g. furnace, sewer back-up
-
Substantial increase in medical bills due to major illness
-
Relocation expenses associated with new employee ($350 maximum)
-
Need counseling, cannot pay for uninsured portion when services are rendered.
What Might Not
be Appropriate for the EAP-ELF?
The EAP-ELF is not
intended to be used in situations where discretionary
(non-essential) spending has contributed to the financial emergency.
What Information Is
Needed To Apply For the Loan?*
The process is similar to that of a bank loan, and therefore
personal finances are examined. The following information is
required:
·
Documentation of income from all household members
·
Monthly budget (including debts)
·
Bank statements within past 7 days of balances in all
checking and savings accounts
·
Bill for which funds are requested (vendor)
·
If for repair, a minimum of two estimates
·
Signed document attesting that all information on
application is complete and accurate and that financial emergency is
genuine. Application containing misleading or false information
will not be considered.
*Once application made, all documentation must be submitted within 5 working days or application is void.
What should I bring
to the ELF Session?
-
Monthly budget (including debts)
-
Documentation of income for all household members
-
Documentation from
each bank of amount of money in all accounts within the past 7
days
-
Bill(s) from
vendor(s)
-
Check-list for EAP
ELF
Who Grants Approval?
Three EAP Advisory
Council members, not the EA counselor, approve the loan. During a
conference call with three (3) members of the EAP Advisory Council,
the EA counselor presents the following information:
·
Reason for the emergency
·
Amount of money requested and name of vendor
·
Financial information regarding income, balances in
bank accounts, monthly budget, outstanding debt, etc.
·
Evidence of an effort to correct the issue (when
appropriate)
·
A prepayment plan
Names, gender, work place, or other identifiers are NOT provided.
The EAP Advisory Council is composed of two faculty members, two
salaried, three hourly employees selected by their respective
representative bodies, one representative from Facilities Management
and one from Cooperative Extension, and ex-officio, the Assistant
Vice-President of
Human Resources or his/her designee. Approval by two of the 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 EAP Advisory Council members to insure
confidentiality. Information regarding the specifics of an
application that might identify the applicant also remains
confidential. such as gender, department, etc. Certain staff members must have knowledge of the
employee’s name and contact information, but they do not have access
to background information regarding the need for the 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.
If Approval Is Granted, How Is The Money Received?
The employee will be informed immediately of the decision. If
approval is granted, the check(s) can usually be picked up at the
EAP office within 24 hours. All checks are made payable to the
vendor. No checks will be written to the employee.
How Can I Contribute to the ELF?
The EAP Emergency Loan Fund is entirely dependent on
contributions. Contributions are both welcome and needed and
can be made by sending a check payable to the University of
Maine to:
University of Maine
P.O. Box 370
Orono, ME 04473-0370
Please write Emergency Loan Fund in the check memo section or
indicate in your cover letter that the money is intended for the
Emergency Loan Fund.
Any questions about donations can be addressed to the UMaine
Development Office at (207) 581-1151. Another way to make a
significant contribution is to support the fund by word of
mouth, talking about it amongst your colleagues, co-workers,
family and friends.
Gifts
in support of the University of Maine are accepted and managed by
the University of Maine Development Office. The University of Maine
is a 501 (c) (3) organization. Contributions to the University of
Maine are tax deductible as allowed by law. Please consult with
your tax advisor for details.
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