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Watco Companies, Inc. Employee Loan Program
POLICY
After completion of one (1) year of employment, if an unusual financial crisis
arises, regular full-time employees may request an interest-free loan up to a
maximum of $1000.00. It is to be paid back through payroll deductions at the
greater amount of $50 or 10% of base salary per pay period.
APPLICATION
1. An unusual financial crisis is defined as an unplanned expense such as, but
not limited to:
- A medical emergency not covered by medical insurance;
- An unanticipated family emergency; i.e., parent, spouse or child stranded out of state due to a non-self-directed event;
- Domestic emergency; i.e., incarceration of a custodial child;
- Court mandated change in custody of a child, personal emergency transportation repairs; or facing eviction from one's home through no flagrant fault of employee.
2. Employees must have a clean work and absenteeism record; i.e., no written advisories, warnings or suspension in their personnel file which have been written within the past 12 months.
3. Employees may not request a loan while they are on any type of leave of absence.
LOAN PROGRAM OUTLINE
- An employee wanting to apply for a company loan will
need to get an application from their location manager. Before forwarding the
application to the loan committee, the location manager will verify the
employee meets the eligibility requirements as defined within this document
and will authorize the application with their signature.
- An employee must submit the application to their immediate supervisor who will then send it directly to the home office at the following address: Watco Companies, Inc., Employee Loan Program, 315 West 3rd Street, Pittsburg, KS 66762, Attention: Loan Administrator
- Do not send the loan application within the department’s paperwork to the home office – they will not be processed and will be discarded immediately.
- Only loan applications received in their own sealed envelope, mailed individually, will be processed. Please do not fax the application.
- The employee loan committee will review all submitted
loans. This committee will be comprised of four employees to be determined by
the ownership team. The committee will prioritize the loan applications on the
basis of the following criteria.
- Purpose of the Loan: Only loans for personal and financial emergencies will be approved. Loans for material purchases and extravagances will not be approved.
- Amount of Loan: The amount of the loan is not to exceed $1,000.
- Term of Loan: Payroll deductions at the greater amount of $50 or 10% of base salary per pay period.
- Additional Loans: An employee may not apply for an additional loan until there is a zero balance on prior loans.
- Applications for loans that are not approved will be discarded and will not be utilized in any additional requests.
- 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.
LOAN APPROVAL AND FUNDING
Each member of the four-member loan committee will review each loan application that meets basic requirements at their sole discretion.
ADDITIONAL EMPLOYEE LOAN APPLICATION GUIDELINES
No loans will be made unless approved by the loan committee and funds are available to be loaned. Loans will be approved or denied within 30 days of receipt. The employee may be asked to submit a credit application.
This employee loan program is designed to help those employees who have exhibited good work practices and who are having financial emergencies. This program will not be abused and may be terminated at any time. Individual abuse, including misrepresentation, will be cause for discipline, up to and including termination.
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