Jewish Free Loan Association (JFLA) Releases 2020 Year-End Data on Interest-Free Lending Activity

• In March-December of 2019 JFLA made 23 small business loans – this year JFLA made 162.
• JFLA waived guarantor requirement for one of its emergency loans due to a desire to get as much financial assistance as possible into the hands of those who need it.

LOS ANGELES--(BUSINESS WIRE)--The Jewish Free Loan Association (JFLA), a non-profit organization that offers interest-free loans to individuals, families and small businesses in the greater Los Angeles area, has released data on its lending initiatives to close out 2020 – one of the most difficult periods for small businesses in the area in history. JFLA was founded in 1904, and lends financial assistance to those in need, regardless of race, religion or sexual orientation.

The coronavirus pandemic has hit Angelenos hard. While a vaccine is on the horizon, we are not out of the woods. For the first time ever in its 116-year history, JFLA is making loans to the unemployed. Only one guarantor is required for loans up to $2,000.

According to the Yelp Local Economic Impact Report, 60% of business closures due to the pandemic are now permanent. That translates to 7,500 business owners in Los Angeles who have had to shut their doors since March.

“At JFLA we consider ourselves financial first-responders,” said Rachel Grose, Executive Director, JFLA. “Now more than ever the people of Los Angeles need our help. If you have the means to do so, please consider working with us to help your fellow Angelenos. And if you need our help, know that you can turn to us.”

JFLA Loans made during the COVID-19 pandemic:

• Small Business:
  • 162 loans made
  • $2.1 million loaned out
  • Loans can be used for rent, salaries, marketing expenses, inventory, purchasing PPE, renovations to comply with COVID-19 guidelines and other business expenses.
• Education:
  • 236 loans made
  • $1.8 million loaned out
  • Loans can be used for tuition, books, computers, student housing and other living expenses.
• Emergency:
  • 387 loans made
  • $922,000 loaned out
  • Loans can be used for rent, car repair, groceries, medical or dental expenses, prescriptions, childcare, or remote learning expenses (internet, computer, desk).

Projected Community Assistance Needs for 2021

• When the rent moratorium comes to an end, there will be a significant need for rental assistance.
• Small business loans will continue to be a top priority in 2021 as businesses struggle to re-open and attract customers.
• The demand for education loans will also remain high, as many parents are unemployed due to the pandemic, and students were unable to work at their summer jobs.

About JFLA

The Jewish Free Loan Association offers interest-free loans on a non-sectarian basis to individuals and families whose needs are urgent and who may not qualify through normal financial channels. Interest-free loans are not charity, they fill an important gap in our social system by promoting self-sufficiency with dignity. JFLA affirms the ancient biblical mandate, interest-free lending, by enacting it: We offer interest-free loan assistance to people in need with the goal of helping them to lead more rewarding and responsible lives. www.jfla.org