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HFLA offers expedited loans up to $1,500 for those impacted by COVID-19

AMANDA KOEHN | LIFESTYLES MAGAZINE EDITOR
akoehn@cjn.org

After Gov. Mike DeWine closed all Ohio schools March 12, the Hebrew Free Loan Association Of Northeast Ohio didn’t waste time enacting an expedited emergency loan program, which loans individuals up to $1,500 interest free.

The next day, the Beachwood-based organization received 60 calls, and the number only increased after bars and restaurants were ordered to shut down in the days following.

The loans are meant for Northeast Ohioans who have been impacted in some way by the COVID-19 pandemic, whether that means loss of income, a sudden need for funds to pay for child care or another need. 

Executive Director Michal Marcus said the organization typically requires a guarantor on loans it offers up to $10,000. For the expedited $1,500 loans, all that’s required to apply is an application and documentation. 

“These are being written directly to individuals because we know if you are a restaurant worker, or in some type of service industry that isn’t working now and you aren’t getting income, you are going to need that money to buy groceries, you are going to need that money to pay a babysitter,” Marcus said. “There are needs where we can’t write it directly to the source of need.”

In the first week of expedited loans, HFLA was able to provide same-day turnaround on the loans once an application was complete and a promissory note was signed. HFLA is using DocuSign so the loans can be signed electronically.

Marcus said because her organization is now working remotely, checks could take three to five days to appear for loans because “it’s coming directly from the bank and we are trying to have as little physical touch as possible.”

In the first week of the program, Marcus said she saw “a lot of anxiety” around the impact of the pandemic and the unknown end date. 

She said the first person to receive an emergency loan was a single mother working at University Hospitals who now needs to pay for child care since her children are out of school. More loans went to those in the restaurant industry, and she’s been contacted by substitute teachers who don’t get paid if they aren’t in school. 

The HFLA expedited loans are generally targeted toward individuals, although Marcus said small businesses are also likely to suffer and need larger loans. 

Marcus also said she was grateful for HFLA’s supporters who have reached out to ask how they can help the organization continue on its path. 

“That has been kind of heartwarming to know – seeing how much people care,” she said. “And we do need it, our funds will run out.”

For more information, visit interestfree.org.

2019 was a record year for HFLA of Northeast Ohio.

We have seen a remarkable jump in loans disbursed, are moving more Northeast Ohioans toward financial stability, and are now able to plan steady and deliberate growth into the future.

This exemplary year would have never been possible without the dedication and advocacy of our supporters. With the continued commitment of our donors, board members, loan recipients, and staff we can maintain this growth that has built upon itself for the last 115 years and perpetuate HFLA’s ability to strengthen individuals and families into the future.

For the first time in over two decades we disbursed 100 loans in the year, surpassing 2018’s loan disbursements by 23 loans. This significant jump clearly shows the impact of our dollars at work. These interest free loans directly impacted 266 individuals within Northeast Ohio and countless others when considering the economic impact of the small business loan recipients.

We continued our efforts to financially empower our loan recipients, and are happy to announce that 100% of 2019’s loan recipients are having their loans reported to the three major credit bureaus. This is moving them closer to their financial goals and increasing their financial stability. Building and maintaining positive credit is a major stepping stone towards financial freedom for many of our borrowers. In making timely payments on our loans, our borrowers are heading toward becoming capable of receiving traditional financing for mortgages and personal loans in the future.

With the growth that HFLA has experienced, and the clear demand for affordable capital in the region, we know that we need to create clear and concrete steps towards the future. This year, HFLA of Northeast Ohio will be creating a new strategic plan to chart the next 3-5 years. In creating this plan we will keep our stakeholders at the forefront of our conversations and will continue to rely on our core supporters and community advocates. 

We will engage these voices to establish strategies that ensure stable growth and increases our ability to empower our shared community towards financial freedom and self-sufficiency.

Get involved and stay up to date by subscribing to our quarterly newsletter or following us on social media.

About HFLA of Northeast Ohio

HFLA of Northeast Ohio was founded in 1904 with $501 donated by Charles Ettinger, Morris Black, and their friends to help European refugees settle and begin productive lives in this country. They believed – as we do now – that if you give someone a chance to succeed, they will pay it back and we can continue this transformative cycle. The same principle guides the organization today. By providing interest-free loans to individuals, families, and small businesses in the Northeast Ohio area, we are able to help people help themselves. The association has drastically increased its lending capital in the past few years from individual gifts, bequests, endowments, foundation grants, memorials and honorariums and is now operating with a loan fund of over $1 million. HFLA is a 501(c)3 non-profit organization. Learn more about HFLA.

Latinx and African American Entrepreneurs and Small Businesses

HFLA of Northeast Ohio received a generous grant from JumpStart allowing expansion of their small business lending activity in the region. With this support, HFLA will expand the number of interest-free loans of up to $10,000 available to minority-owned small businesses needing capital but lacking access to traditional lending sources.

“We are thrilled JumpStart understands the pressing need small business owners have for alternative lending in the form of interest-free loans.  This grant gives HFLA the opportunity to increase lending capacity and reach more entrepreneurs who need access to affordable capital,” shared Michal Marcus HFLA Executive Director.

“JumpStart’s mission is to unlock the full potential of diverse and ambitious entrepreneurs to grow their businesses, create jobs and economically transform our community,” JumpStart’s CEO Ray Leach shared. “HFLA is a trusted community organization with an impressive history of interest-free lending. We are excited to support their efforts in lending more capital to Latinx and African American entrepreneurs and small business owners in the city of Cleveland.”

HFLA has been lending interest-free in Northeast Ohio since 1904. The past three years we have seen a significant increase in small business lending to minority owned businesses.

Additional information can be found at https://interestfree.org/.

About HFLA of Northeast Ohio

HFLA of Northeast Ohio was founded in 1904 with $501 donated by Charles Ettinger, Morris Black, and their friends to help European refugees settle and begin productive lives in this country. They believed – as we do now – that if you give someone a chance to succeed, they will pay it back and we can continue this transformative cycle. The same principle guides the organization today. By providing interest-free loans to individuals, families, and small businesses in the Northeast Ohio area, we are able to help people help themselves. The association has drastically increased its lending capital in the past few years from individual gifts, bequests, endowments, foundation grants, memorials and honorariums and is now operating with a loan fund of over $1 million. HFLA is a 501(c)3 non-profit organization. Learn more about HFLA.

Last night, Cleveland Jewish News hosted the fifth annual 18 Difference Makers Awards Ceremony. HFLA of Northeast Ohio’s Executive Director, Michal Marcus, was honored as a Difference Maker for positively impacting the lives of Northeastern Ohioans for over thirteen years. Michal has been the Executive Director for the past six years, and the organization has grown tremendously under her leadership. HFLA had just under $300,000 in microloans on the street when Michal began leading the organization and now has over $1,000,000 in the hands of students, small business owners, and people in need of a hand up throughout our community. Michal believes that interest-free lending can make very big difference in the lives of people experiencing financial difficulties, and is proud of the fact that HFLA applies the Jewish principle of lending money interest-free to those in need to all of Northeast Ohio, regardless of religious affiliation. Mazel tov, Michal!

To read CJN’s article about Michal, click here.