Applications for loans with credit unions have dropped by 80% during the pandemic.
Some branches have already laid off staff and there are fears some are facing closure.
Credit unions rely heavily on loans.
Gerry Thompson, president of the Irish League of Credit Unions, says urgent state support is needed.
He says: "The Credit Unions are under pressure. And if we are to remain open and to remain in a position where we can continue to deliver vital services to people who really need Credit Unions.
"Then we just simply need the support of our authorities. So if we are to continue struggling as the government want us and the authorities want us to remain open, then I think there is a quid pro quo.
"We need some support from our authorities, it's as simple as that in a nutshell."