Small Business Loan Overview


The Small Business Loan Program provides interest-free loans of up to $60,000 to low- and moderate-income residents of New York City’s five boroughs, Westchester, or Long Island to help launch or expand a business. Apply online here.

Loans are repayable in monthly installments beginning three months after the loan is received. The monthly repayment amount and repayment term is determined on a case-by-case basis by HFLS’s Small Business Committee, with loan terms typically ranging from 12 to 36 months. Monthly loan payments are made by electronic debit of a checking account. HFLS is a non-sectarian lender; you do not have to be Jewish to receive an interest-free small business loan from HFLS.

Since HFLS lends to households, a married couple is considered one borrower. If an applicant is married or partnered, he or she must include their spouse’s/partner’s information in the application.

Guarantor Information

One guarantor is required for loans up to $30K, and two guarantors are required for loans above $30K and up to the $60K maximum. Please see below for information about guarantor eligibility requirements.

Potential guarantors must complete and sign a guarantor form. If a guarantor is married or partnered, his or her spouse/partner must also complete and sign the guarantor form; together they are considered one guarantor.

Each guarantor must also complete ID-Pal identity verification and ID document authentication.

Each guarantor is “jointly” and “severally” liable for the loan in the event the borrower is unable to pay for any reason. This means that, while HFLS would expect each guarantor to share equally in the responsibility of repaying the loan, each is liable legally for the full amount, and any one guarantor could be called upon to repay the balance due.

Guarantors must meet the following criteria:

  • US citizens or permanent legal residents currently living in New York, New Jersey, or Connecticut. Guarantors are required to provide proof of US citizenship or permanent residency by scanning their US passport, passport card, or green card during the ID-Pal verification process.
  • Have a checking account, credit score of at least 680, and total family income of at least $60,000 a year.
  • Currently employed (HFLS prefers persons who have worked at least one year in their present position).

Even if they meet the requirements above, the following people may not guarantee a loan:

  • You, your spouse/partner, or your dependents
  • Persons who currently have an outstanding HFLS loan or are a guarantor on an outstanding HFLS loan
  • Partners and employees of the applicant’s business
  • Persons who are financially unable to repay the loan

Application Process

  1. Complete and submit the online loan application for this program, which includes uploading the following required documents:
  • Last 2 years of personal tax returns
  • Last 2 years of business tax returns
  • Insurance policies
  • Copy of lease
  • Corporate By-Laws
    1. Follow the instructions you’ll receive in an email from HFLS to complete the ID-Pal identity and ID document verifications and authorize HFLS to view your recent checking account information and transactions through Plaid.
    1. If you entered the names and email addresses of your proposed guarantor(s) in the online application, they will receive two emails: One from HFLS containing a link to the online guarantor form, and another from ID-Pal containing a link to complete the ID-Pal identity verification. Please remind them to complete these steps and to check their spam/junk folder if they do not see these emails in their inbox.

    After receiving the completed application, required documents, guarantor form(s), and ID-Pal verifications, an HFLS Loan Officer will contact you to request any missing information and schedule a 45-minute loan interview by Zoom. 

    During the interview, the Loan Officer will ask any questions they have about your application, explain the loan closing process and loan terms, and answer any questions you have.

    Due to the high volume of applications, we ask that you do NOT contact HFLS about the status of your application. HFLS reviews complete applications only in the order in which they are received. If you have not heard from a Loan Officer, it is because one or more of the steps above is not complete or because HFLS is processing applications that were completed before yours.

    Loan Decisions & Closing

    HFLS’s Small Business Committee reviews and decides on loan requests once monthly. If the Committee has questions about your application or guarantors, you may receive a call or email from the Small Business Program Director or Loan Officer asking for further information before the Committee will make its decision.

    You will receive information within one business day after the committee meets to review your loan request. The Committee, in its discretion, may decline to make a loan, make a loan in an amount less than that requested, or require different or additional guarantors.

    If your loan is approved, you will receive an email with loan closing documents for you to complete and sign electronically via DocuSign. The loan closing paperwork includes:

    • A Promissory Note, to be signed by the borrower, guarantor, and all spouses/partners
    • A Guaranty of Payment to be signed by the guarantors and their spouses/partners
    • A Loan & Security Agreement signed by the borrower and their spouse/partner
    • An Authorization of Automatic Payments (ACH) form, so the loan funds can be transferred directly into your checking account and so HFLS can withdraw monthly loan repayments directly from your checking account.

    Once HFLS receives the electronically signed documents above, we will disburse your loan funds directly into your checking account within three business days. (Please note that it may take a few extra days after the disbursement for the loan funds to appear in your checking account.)