Employee Hardship Loans Policy

Purpose

[Company Name] has established a hardship loan program available to eligible employees experiencing a financial hardship.

Employee hardship loans are available in the event of a personal financial crisis such as, but not limited to:

• An out-of-pocket medical expense due to a medical emergency.
• An unanticipated family emergency (e.g., death of a family member, being the victim of a crime).
• Unexpected and significant vehicle repairs.
• Impending eviction from one's home through no flagrant fault of the employee.

Eligibility

All regular full-time employees are eligible to apply for an employee hardship loan after the completion of two years of active employment. Temporary employees, interns and contractors are not eligible for hardship loans.

Procedures

Eligible employees may request a one-time interest-free loan up to a maximum of $[amount]. Loans must be paid back through payroll deductions at the greater amount of $[amount] or 10 percent of base salary per pay period.

An employee seeking to apply for a company loan must obtain an application from human resources. The employee's supervisor must sign off on the loan request and forward it to the chief financial officer (CFO) and the employee loan committee for approval.   

The CFO and the employee loan committee will review all submitted loan applications. All applications will be reviewed to ensure the purpose of the loan, the amount of the loan and the repayment terms comply with this policy.

All employees who have submitted applications will receive notice of either approval or rejection of their individual request from a member of the human resources department. Applications for loans that are not approved will be discarded and will not be utilized in any additional requests.

The employee hardship loan program is designed to help those employees who have exhibited good work practices and who are having financial hardships as defined above. This program may be terminated at any time. Employee abuse, including misrepresentation, will be cause for discipline, up to and including termination of employment. The company reserves the right to deny approval of a loan for any legitimate reason. The hardship loan program is intended as a benefit personal to the individual employee involved and is not assignable to any other person.