Unemployment numbers will continue rising as more businesses close because of the coronavirus pandemic. Over 16 million Americans have already lost their jobs with layoffs spreading across the country.
The worst affected sectors are restaurant and leisure industries. Job losses are expected to spread across construction, manufacturing, and even healthcare.
More people have been put out of work in the last three weeks than in the 2008/2009 recession. Economics predicts that the unemployment rate can reach 15%, a level unseen since World War 2.
States with the largest job losses are New York, California, Florida, and Michigan. That doesn’t mean that the situation is out of control. A sharp bounce back is possible. However, it depends on government action and a coherent strategy for safely reopening the US economy.
The Federal Reserve has already approved a $2.3 trillion package for shielding small and midsize businesses from the economic effects of the coronavirus. This might help to ease job losses. The announcement of this package cheered investors. The FTSE closed 2.9% higher on the day of the announcement sealing a weekly gain of 7.7%, the biggest since January 2009.
Lending Companies are Helping People Weather the Storm
Amid rising job losses, many people and businesses have been unable to service their loans. Some lending companies have temporarily reduced their interest rates. There are lenders offering borrowers the ability to skip or defer making loan payments.
The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) have urged lenders to help their customers deal with the financial effects of COVID-19. The Governor of New York, Andrew M. Cuomo, has instructed banks to eliminate ATM fees and overdraft fees. Banks in New York were given 10 days to abide by this directive.
Over the past few weeks, credit unions, retail banks, and online-based lenders have been putting their response plans in place to address the current situation. Here is how some financial institutions are offering relief to customers affected by COVID-19.
- Wells Fargo
Wells Fargo is the world’s 4th largest bank by market capitalization. Wells Fargo is offering fee waivers, collection forbearance programs, and credit line increases.
Wells Fargo customers who cannot pay their mortgages because of COVID-19 can obtain a waiver of up to 180 days with no late fees.
- Pinnacle Lending
Pinnacle Lending is a San Diego based lender. The company lends money to customers for various financial needs include auto purchase, vacations, wedding, and home improvement among others. Getting a personal loan from Pinnacle Lending takes some time because of the need to consider credit score.
In response to COVID-19, Pinnacle Lending is expediting the loan approval process. Customers can also expect lower interest rates. The loan application process will only take minutes and approval will happen in less than 2 hours. They will also offer you flexible payment options. Repayments will be customized to a payment schedule that is suitable for your financial circumstances.
Pinnacle Lending acknowledges the need to practice social distancing to halt the spread of COVID-19. Therefore, customers don’t need to visit the branch to make loan applications. They can do so online. The company’s website is encrypted using the latest standards to ensure that you can safely submit your financial information.
- PNC Bank
PNC customers who encounter hardships because of the coronavirus should contact the bank to discuss options. PNC is offering several hardship relief options.
Discover Customers affected by COVID-19 can receive assistance related to payment timing, late payment, and fees. Customers are encouraged to contact support for more information.
Has COVID-19 Affected Your Finances?
Pinnacle Lending is here to help you. Call (866)278-6488 for more information. You can also reach the company through its website: https://www.pinnaclelendpro.com/.