Security Infrastructure Loan Overview


The Security Infrastructure Loan Program provides interest-free loans of up to $150,000 to Jewish communal organizations in New York City’s five boroughs, Westchester, or Long Island to enhance the ability of these institutions to prepare, prevent, and respond to terrorist attacks and other security threats. Agencies may use the loans for planning, equipment, training, and physical infrastructure improvements. This program is a partnership with UJA-Federation of New York.

 

FOR AGENCIES THAT HAVE GOVERNMENT SECURITY GRANTS

Government security grants require agencies to pay up front for the work and then to submit receipts for reimbursement, which causes a cash flow problem for some agencies to the point that they are unable to take advantage of the award. This program provides interest-free bridge loan financing to ensure that grant awardees can proceed with the work necessary to increase security and safety for their community.

Loans are available up to $150,000 and must be repaid in full upon receipt of reimbursement from the grantmaking agency, within six months of the loan date.

Agencies must provide their signed grant award letter as well as a guarantor for the loan. We require a guarantor even though these loans are backed by government contracts to ensure that grant funds released to the organizations reach HFLS. Also, if an awardee veers from the approved work plan with the result that some of the costs for the project are deemed not reimbursable by the government, HFLS will still require repayment in full.

 

FOR AGENCIES THAT DO NOT HAVE GOVERNMENT SECURITY GRANTS

Similar to the program above, but as these agencies do not have a guaranteed third-party source of repayment, they must provide two guarantors for the full amount of the loan.

Loans are available up to $150,000 and may be repaid in six to ten monthly installments, with the maximum monthly payment imposed by HFLS set at $25,000 (for a six-month repayment term on a loan of $150,000). As with all HFLS loan programs, borrowers may opt to repay their loan in larger installments and/or over a shorter term. Loan repayments will begin the month after the agency receives their loan.

Guarantor Information – For All Agencies

Agencies with government security contracts must provide one guarantor for the loan. We require a guarantor even though these loans are backed by a government contract to ensure that grant funds released to the organizations reach HFLS. Also, if an awardee veers from the approved work plan with the result that some of the costs for the project are deemed not reimbursable by EHP, HFLS will still require repayment in full.  

Agencies that do not have government security contracts must provide two guarantors for the loan, as these agencies do not have a guaranteed third-party source of repayment.

Guarantors must meet the following criteria:

  • US citizens or legal residents currently living in NYC’s five boroughs, Westchester, or Long Island
  • FICO score of 680 or higher
  • The amount guaranteed may not be more than 25% of the guarantor’s annual income as shown on the preceding year’s tax return or more than 10% of liquid assets as shown by statements or verified by a letter from the guarantor’s accountant.

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

  • Persons who are currently a guarantor on an HFLS loan
  • Persons who are unable to repay the loan

Loan Documents

The documents below are required for a Security Infrastructure Loan. Once you have completed or collected all the documents below and have all necessary signatures, please submit them by email to security@HFLS.org or send hard copy originals to HFLS Security Loans program, 675 Third Avenue, Suite 1950, New York, NY 10017.

From the borrowing institution:

  • Loan Application, completed and signed by the borrower’s authorized representative
  • For agencies with government grants: A copy of the fully executed government grant award contract

From the guarantor(s) (guarantors may choose to send these documents directly to HFLS):

  • Guarantor Form, completed and signed by the guarantor and their spouse, if married (one guarantor for agencies that have government grants; two guarantors for agencies that do not)
  • Copies of government-issued photo IDs that include signatures for the guarantors and their spouses, if married (e.g. driver’s license or U.S. passport)
  • Preceding year’s tax return, bank statements, or letter from each guarantor’s accountant demonstrating that the guarantor meets the requirements stated under “Guarantor Information” above

Loan Decisions & Closing

HFLS reviews loan applications on a rolling basis. Once we have received your initial application, the HFLS Director of Finance & Administration will reach out to the contact person to confirm that the agency applying is qualified and to request financial statements. These will be reviewed, along with guarantor forms, for a final decision on the loan. If everything is in order, a loan decision can take a little as two weeks. HFLS, in its discretion, may decline to make a loan, make a loan in an amount less than that requested, or require a different guarantor.

If your loan is approved, the email or letter you receive will contain instructions to complete the final loan agreement to be signed by the borrowing agency’s authorized representative(s) and by the guarantors and the guarantors’ spouses, if married.

Agencies that do not have government grants will complete an ACH Form so the loan can be repaid via automatic withdrawals from the institution’s bank account on a set date each month.                                                                              

Once HFLS receives and confirms the final paperwork, a check will be available within 3-5 business days. HFLS will deliver the check to the agency by overnight mail or the agency may choose to pick up the check at the HFLS office in Midtown Manhattan.

Required Forms Download

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