May 1, 2020
Unemployment levels continue to be top of mind for everybody as an additional 3.8 million people filed for unemployment last week. Over 30 million people in the US have applied for unemployment benefits in the last six weeks and economists predict many more will file in the coming weeks. The current unemployment rate is over 20 percent nationwide and expected to peak around 30 percent. At the same time, as states start opening, many people will be welcomed back to work and hopefully unemployment decreases. We will continue to support our membership as we endure the headwinds. Here in Colorado Springs, the unemployment rate is approximately 13 percent and expected to increase in the coming weeks. Working together, we will get through this.
Over the past few weeks, our staff has adjusted to a new way of operating in the branches and from home. Out of an abundance of caution, we plan to keep our support staff working from home in the near future and will keep our branches open to serve you. We will follow appropriate guidelines to ensure your safety and our safety.
The government continues to provide stimulus funds to help small businesses. The Paycheck Protection Program (PPP) went through the first round of $350 billion in about two weeks and the second round of $310 billion is nearly exhausted. We have participated in the second round and have helped a few members get approved for the program. We believe more PPP funding will happen.
Looking forward, we will stay focused on our membership and how to best serve our communities. We anticipate the government will continue additional rounds of stimulus funds in different ways. We expect funds to be given to states and local governments as they become stressed from lower tax revenue, additional funds allocated for unemployment, funds for essential industries, and some possibility of more individual stimulus. Our job is to stay abreast of all developments and make longterm decisions for the benefit of our members.
Glenn L. Strebe
President and CEO
Air Academy Federal Credit Union