SkillUp Training Loans

Eligibility

To qualify for a SkillUp Training Loan, applicants must meet the following requirements:

• Be a SkillUp user enrolled or enrolling in a training or upskilling program available through the SkillUp portal.
• Reside in New York City’s five boroughs, Westchester, or Long Island.
• Have annual household income sufficient to support loan repayment and no higher than the HFLS income limits posted at HFLS.org/How-to-Apply.
• Have an active checking account.
• Identify one qualified guarantor who meets the following requirements:
  • Resides in NY, NJ, or CT
  • Has annual, pre-tax household income of at least $30,000 
  • Has good credit, as evidenced by HFLS reviewing their credit report

Married/Partnered Applicants and Guarantors: If an applicant is married or partnered, they must include their spouse or partner’s information in the application form, as each member of a married or partnered couple is equally responsible for the loan.

After an application is submitted, the spouse or partner of the applicant will receive a notification informing them of the loan application and asking them to confirm receipt of the email. This confirmation is required in order for HFLS to process the loan. If the loan is approved, the applicant and their spouse or partner must both sign the promissory note upon loan closing. 

Loan Terms

Loans are repaid in monthly installments of $250, resulting in a maximum repayment term of 20 months.

If an applicant indicates in their application that they are unable to work or earn sufficient income to afford $250 monthly payments while they are enrolled in their training program, HFLS will offer a reduced monthly repayment amount for the duration of the training program, after which the payment amount will increase to $250/month.

Other/Multiple HFLS Loans

SkillUp users who require more than $5,000 may apply for another type of HFLS loan. A full listing of all HFLS loans is available at HFLS.org/programs. Please note that other HFLS loans may have different eligibility parameters or requirements.

HFLS typically permits only one loan per household; however, when a borrower has an urgent need for additional funds, HFLS will consider exceptions to permit the borrower to take a second loan while the first is still outstanding. A full description of the circumstances under which HFLS will make such exceptions is available at HFLS.org/borrower.

Application Process

After submitting the application, the applicant’s proposed guarantor (whose name and email address will be provided by the applicant in the application) will receive an automated email with a unique link to a guarantor form. 

Upon receipt of the completed guarantor form, HFLS will pull the guarantor’s credit report and contact the applicant to schedule a 15-20 minute loan interview by phone.

HFLS will approve or deny the loan. If the loan is denied, the applicant will receive an email from HFLS noting the reason for the denial. If the loan is approved, HFLS will proceed with the steps below.

Loan Closing and Disbursement

After a loan is approved, HFLS will send the following loan closing documents to the applicant for electronic signature. The applicant will electronically complete and sign the forms where indicated:

• Promissory Note (the legal document the borrower signs to agree to the loan terms and receive the loan), accompanied by a Disclosures document (laying out the key loan terms). The Promissory Note will be signed by the borrower, guarantor, and all spouses/partners.
• ACH Form (to authorize HFLS to automatically withdraw loan repayments from their checking account in accordance with the repayment schedule in the Promissory Note and Disclosures document).

Within two business days of receiving the completed and signed Promissory Note and ACH Form, HFLS will close the loan and disburse the approved loan amount directly into the borrower’s checking account. The funds should appear in the borrower’s account within two business days.

Repayments

HFLS will withdraw monthly repayments directly from the borrower’s designated checking account via ACH on the date preferred by the borrower (the 5th or 20th of the month) and referenced in their Promissory Note and ACH Form. Repayments will begin approximately one month after the loan funds have been disbursed.