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March 11, 2011
Society sets milestones
Changes take place at Hebrew Free Loan.
MICHELLE DODEK
Reaching 100 is an impressive achievement. Having $1 million in your account is also exciting. These are two things the Vancouver Hebrew Free Loan Association (HFLA) can now proudly claim.
Gary Averbach recently established HFLA’s 100th named-loan fund, simply wanting to support the agency’s work by naming a family loan fund, he said, totally unaware that he was making this landmark happen. It was active honorary board member Shirley Barnett who helped the organization reach $1 million in funds, through her donation to the Ben and Esther Dayson Family Foundation.
Having this type of capital at the disposal of HFLA enables the board of directors to continue to grant interest-free loans to deserving applicants. Association president Diane Friedman told the Independent that more than $4 million has been loaned to people living in the Lower Mainland by HFLA. “This is the fund that keeps on giving,” she said with a broad smile.
The board of directors is a group of volunteers who attend meetings twice a month and interview loan applicants about once a month. They are busy but more than happy to help.
“It is a board that accomplishes very good work on a very regular basis,” said member Ken Miller. “We help people while giving them tools to help themselves.”
And HFLA is now able to help people even more than before. The loan limit has been raised and a new category has been created. Although these changes are happening about the same time as the funds reached the $1 million mark, the increase was in the works long before Barnett announced her gift. The last time the limit was increased was in 2004, according to Friedman, and she has been pushing both for regular loan amounts to be raised to $7,000 and also for the creation of a new category of loans that would be awarded up to $10,000 for small business and special purposes. Both of her recommendations passed and, as soon as the new, more in-depth paperwork is ready for distribution, the new limits will be in effect.
Special purposes, as imagined by the board of directors, include things like in vitro fertilization treatments, adoption and tuition. “We feel as though we can help more people and we also feel like we can help people more,” said Friedman of the new limits and loan categories. In a way, she said, this increase is just keeping up with inflation because people’s expenses have risen. The challenge for potential applicants may now come from finding qualified guarantors for their loan.
“All of our loans are character loans,” said Friedman. “Our borrowers do not have collateral. The borrowers ask us to believe them and, with the knowledge that they have asked people in their lives that they know well to vouch for them as well, we gain comfort in the fact that others believe in them enough to say they will pay back the loan if the borrower is unable to.” Applicants need to secure two guarantors who will each agree individually to cover the loan payments in the event of a default. It was difficult for some people when the loans were only $5,000 and it may be more challenging with the larger lending limits.
“It’s a mitzvah to be a guarantor,” asserted Friedman. “When you help us lend to people who are part of the community, it shows you are part of the community.” She mentioned that the kinds of relationships people tap into when seeking guarantors are broad. Some people ask family members and close friends, but others ask colleagues, bosses, past employers, neighbors or even parents of their children’s friends. At least one of the guarantors must be Jewish and both need to have the ability to repay the loan if necessary.
While securing guarantors may be the biggest challenge for borrowers, the most serious issue facing HFLA is membership. Although the board is made up of volunteers, there are operating expenses that need to be paid, including those of the part-time accountant and administrator. In order to keep the dividends from HFLA funds available for loans, the association relies on annual $36 memberships to cover such costs. People can show their support each year by becoming members. The other way to enable HFLA to do its work is to spread the word that there is money available for Jews in need of a loan.
For more information about the application process or to become an HFLA member, visit hfla.ca.
Michelle Dodek is a freelance writer who is involved with many Jewish communal organizations.
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