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 grant-making government agency, within six months of the loan date.

Agencies that have government grants and seek to apply for a Security Infrastructure Loan must:

  • Provide financial statements including a cash flow analysis that demonstrates that the agency can repay the loan in six months following the expenditure if for any reason the grant is not made.
  • Provide a signed copy of the Security Agreement, which 1) gives HFLS a first-priority lien on the portion of the grant funds covered by the HFLS loan, 2) obligates the borrowing agency to do what is necessary to obtain payment of the grant, and 3) in the very unlikely event that the grant or the improvements made by the borrowing agency result in any liability or cost to HFLS, the agency agrees to pay such liability or cost (except if HFLS is the guilty party).

If a borrowing agency veers from their government grant 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 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, borrowing agencies 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.

As these agencies do not have government security grant awards, they must:

  • Submit a security infrastructure plan for HFLS approval, and
  • Provide two guarantors OR one guarantor plus financial statements including a cash flow analysis that demonstrates that the agency can repay the loan in ten months following the expenditure.

Guarantor Information (only for agencies WITHOUT government security grants)

A “guarantor” may be one person/couple guaranteeing the full loan amount OR more than one person/couple guaranteeing no less than $25,000 each, as long as the aggregate amount guaranteed equals the total loan amount. (A married couple is considered one guarantor.)

All 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, persons who are currently a guarantor on an outstanding HFLS loan or who are unable to repay the loan will not be permitted to guarantee a Security Infrastructure 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
  • For agencies without government grants: A detailed project plan of the security infrastructure upgrade with costs and a timeline.

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

  • Guarantor Form(s),completed and signed by the guarantor(s) and their spouse(s), if married. (A married couple is considered one guarantor.)
  • 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 loan amount is not 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.

    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