Press Release: JFLC Prepares to Open for Business
Jewish Free Loan Chicago (JFLC) is gearing up to offer zero-interest loans for the Chicagoland community. It plans to begin taking loan applications September 1.
Individuals earning up to 115% of the area median income, which is $85,730 for a family of four, of any and all religious backgrounds facing financial emergencies will be eligible for zero-interest loans of up to $6,000. Loans can cover a variety of expenses including auto repair, home repair, healthcare, education, and even fertility or adoption costs. A JFLC loan can also act as a bridge between jobs to enable a family to pay for basic living expenses.
“The payday lenders left town after Illinois established a 36% cap on interest rates last year,” said Leah Greenblum, Founder and Executive Director of JFLC. “Unfortunately, many Chicago families still have urgent cash needs. A JFLC loan offers zero-interest and zero borrower exploitation.”
JFLC plans to make 50 loans in its first year on a first come, first served basis, starting in September. The organization is in the process of raising nearly half a million dollars to run its operations and establish a loan fund for its first year.
JFLC joins 50 other organizations around North America following a similar model. Rooted in the Jewish value of zero-interest lending, Jewish (or Hebrew as they’re sometimes called) Free Loan organizations are established in every major city – except for Chicago, until now. JFLC is a member of the International Association of Jewish Free Loans, an accrediting network of interest-free loan agencies.
Compared to high-interest loans, a JFLC loan can boost economic development in vulnerable communities. The average predatory auto title loan in 2020 was 178% APR. 2,000 free loans in one year would save a community over $6.5 million.
“We are living in uncertain times, made even more challenging as inflation rises, with prices increasing on everything from electronics to eggs,” said Professor of Instruction Emerita Hilarie Lieb, Northwestern economist and JFLC Board Chair. “Interest rates naturally grow with inflation. Jewish Free Loans’ rates will not; instead, they will provide financial certainty through guaranteed zero interest loans.”
A JFLC loan is always free – no fees, penalties, or interest ever. To qualify, an applicant must have a guarantor, or a person from their personal network who can vouch for them. As part of the application review, JFLC will consider the credit history of the borrower’s guarantor, as well as a borrower’s monthly income and expenses.
JFLC is a fiscally sponsored project of Jumpstart Labs, a 501c3. All donations are tax-deductible to the furthest extent of the law.
To learn more, go to jflchicago.org.