Hebrew Free Loan Association Of San Francisco

TO PROVIDE INTEREST FREE LOANS TO MEMBERS OF THE NORTHERN CALIFORNIA JEWISH COMMUNITY.

WE CLOSED THE 2021-22 FISCAL YEAR WITH $18.5 MILLION IN INTEREST-FREE LOANS OUTSTANDING PRIMARILY TO MEMBERS OF THE NORTHERN CALIFORNIA JEWISH COMMUNITY - AN INCREASE OF 84% FROM ONLY FOUR YEARS AGO. THIS INCLUDES $672,268 IN LOANS THROUGH THE POLLAK COMMUNITY LOAN PROGRAM, A STAND-ALONE, NONSECTARIAN STUDENT LOAN PROGRAM THAT IS SEPARATELY FUNDED BY DONORS INTERESTED IN ASSISTING NON-JEWISH YOUNG PEOPLE FROM LOWER INCOME HOMES TO PURSUE HIGHER EDUCATION. WE DISBURSED 444 NEW LOANS TOTALING $5.6 MILLION IN THE FISCAL YEAR, BRINGING THE TOTAL NUMBER OF LOANS IN CIRCULATION THROUGHOUT THE COMMUNITY TO 1,383. THIS REPRESENTS AN INCREASE OF ALMOST 25 ADDITIONAL LOANS OUT IN THE COMMUNITY OVER THE PREVIOUS YEAR, AND 125 MORE LOANS THAN THE YEAR BEFORE THAT.THE INCREASE IN THE AMOUNT AND NUMBER OF LOANS ASSISTING MEMBERS OF OUR NORTHERN CALIFORNIA JEWISH COMMUNITY IS A COMBINATION OF SEVERAL FACTORS, BUT THE LINGERING EFFECTS OF THE COVID-19 PANDEMIC ARE MOST PROMINENT. OF THE $5.6 MILLION IN LOANS MADE IN 2021-22, APPROXIMATELY 13% ($756,000), WENT TO HELP 52 INDIVIDUALS, FAMILIES, AND SMALL BUSINESS OWNERS NAVIGATE FINANCIAL HARDSHIPS ARISING FROM THE PANDEMIC. THESE COVID-RELIEF LOANS ARE SPREAD ACROSS ALL LOAN TYPES. THE MOST FREQUENTLY REQUESTED TYPES OF COVID ASSISTANCE WERE GENERAL NEEDS LOANS TO HELP COVER BASIC NEEDS (22 LOANS TOTALING $319K) AND DEBT CONSOLIDATION LOANS TO HELP WITH THE CRUSHING WEIGHT OF HIGH-INTEREST DEBT FROM INDIVIDUALS WHO HAD USED CREDIT CARDS TO COVER THEIR EXPENSES WHEN THEIR INCOME DROPPED DUE TO COVID (16 LOANS TOTALING $257K). IN ADDITION, HEBREW FREE LOAN'S VISIBILITY IN THE COMMUNITY CHANGED DRAMATICALLY ONCE COVID-19 BEGAN TO REDEFINE OUR WORLD IN EARLY 2020. WE FOUND OURSELVES AT THE CENTER OF A FINANCIAL STORM DURING THE FIRST MONTHS OF THE PANDEMIC, AS PEOPLE WERE LOSING THEIR INCOMES OVERNIGHT AND GOVERNMENT ASSISTANCE WAS DIFFICULT TO ACCESS. WHILE THE INTENSITY OF PANDEMIC-RELATED NEED HAS TAPERED, THE EFFECTS OF OUR INCREASED OUTREACH DURING THE PANDEMIC PERSISTED. BECAUSE WE EXPANDED OUR OUTREACH EFFORTS TO MAKE SURE THAT ALL WHO WERE IN NEED AND ELIGIBLE FOR OUR LOANS KNEW OF OUR EXISTENCE, WE CONTINUED TO RECEIVE HIGHER NUMBERS OF APPLICATIONS FOR ALL TYPES OF LOANS THAN WE DID PRIOR TO THE PANDEMIC.AND NUMBERS ALONE DO NOT TELL THE WHOLE STORY, WITH THE EFFECTS OF COVID-19 CONTINUING TO COLOR EVERYTHING. WE RECEIVED LOAN REQUESTS FROM PEOPLE WHO HAD BEEN LAID OFF DURING THE PANDEMIC AND HAD BEEN UNABLE TO FIND A JOB COMPARABLE TO THEIR PREVIOUS EMPLOYMENT, OR THOSE WHO NEEDED OUR ASSISTANCE BECAUSE THEY DEPLETED THEIR SAVINGS DURING THE HEIGHT OF THE PANDEMIC. LOAN APPLICANTS OFTEN FORGOT TO EVEN MENTION THAT COVID WAS AT LEAST A PARTIAL CAUSE OF THEIR SITUATION, BECAUSE LIVING WITH THE CORONAVIRUS BECAME THE NEW NORMAL. AND IN THIS NEW NORMAL, IT WAS CLEAR THAT MORE PEOPLE NEEDED OUR ASSISTANCE NOW THAN THEY DID BEFORE THE PANDEMIC.

WE CONTINUED TO SOLIDIFY OUR ROLE AS THE CENTRAL LENDING INSTITUTION FOR JEWISH RESIDENTS OF NORTHERN CALIFORNIA, EVOLVING TO MEET THE EVER-CHANGING NEEDS OF OUR COMMUNITY. EARLY IN THE PANDEMIC, IN ORDER TO SUSTAIN OUR CORONAVIRUS IMPACT LOAN PROGRAM, WE DEEPENED OUR LONG PARTNERSHIP WITH THE JEWISH COMMUNITY FEDERATION AND ENDOWMENT FUND. TOGETHER WE CREATED AN INNOVATIVE MODEL OF TAPPING MONEY IN DONOR-ADVISED FUNDS THAT WAS ALREADY EARMARKED FOR CHARITABLE PURPOSES AND GETTING IT OUT INTO THE COMMUNITY TO DO IMMEDIATE GOOD FOR THOSE IN NEED. THE FEDERATION'S ENDOWMENT FUND, ALONG WITH 54 OF ITS DONOR-ADVISED FUNDS AND TWO SUPPORTING FOUNDATIONS, ESTABLISHED A POOLED RECOVERABLE GRANT (A LOAN) OF $5.6 MILLION TO HEBREW FREE LOAN EARLY IN THE PANDEMIC TO PROVIDE CAPITAL FOR COVID-19 RELIEF LOANS. WE LOANED OUT ALL OF THE DOLLARS WE RECEIVED FROM THE FEDERATION (IN ADDITION TO OUR OWN LOAN FUNDS), ENSURING THAT WE DID NOT HAVE TO TURN AWAY ANY QUALIFIED LOAN APPLICANTS. AS OF THE CLOSE OF THE 2021-22 FISCAL YEAR, WE HAD RETURNED $2.4 MILLION OF THE RECOVERABLE GRANT TO THE FEDERATION AND ITS SUPPORTING FOUNDATIONS AND DONOR-ADVISED FUNDS, TO BE REDEPLOYED FOR OTHER CHARITABLE PURPOSES.THE SUCCESS OF THIS MODEL INSPIRED THE FEDERATION TO INCLUDE HEBREW FREE LOAN IN ITS NEW IMPACT INVESTING INITIATIVE, OFFERING DONOR-ADVISED FUNDHOLDERS AN ONGOING OPPORTUNITY TO MAKE RECOVERABLE GRANTS TO OUR AGENCY TO HELP PROVIDE CAPITAL FOR LOANS IN THE COMMUNITY. DURING THE 2021-22 FISCAL YEAR, FEDERATION DONORS LENT CLOSE TO HALF A MILLION DOLLARS FOR THIS PURPOSE, AND MORE IS EXPECTED IN SUBSEQUENT YEARS.

WHEN RUSSIA INVADED UKRAINE IN LATE FEBRUARY 2022, WE IMMEDIATELY LAUNCHED A UKRAINE ASSISTANCE LOAN PROGRAM TO HELP RESIDENTS OF NORTHERN CALIFORNIA WHO NEEDED FUNDS TO SUPPORT THEIR LOVED ONES WHO WERE STILL IN UKRAINE OR HAD BECOME REFUGEES FLEEING TO SAFETY. THE IMPACT ON THE FAMILIES WHO RECEIVED THOSE LOANS WAS IMMEASURABLE, AS WAS THE IMPACT ON THE LARGER COMMUNITY.THE FIRST OF THESE LOANS WAS MADE WITHIN TEN DAYS OF THE INVASION, TO HELP A LOCAL FAMILY ENSURE THAT THEIR BROTHER, SISTER-IN-LAW, AND TWO NEPHEWS STILL IN KYIV COULD TAKE CARE OF THEIR BASIC NEEDS. THE LOAN FUNDS ALSO MEANT THEY WOULD BE ABLE TO HELP THEIR FAMILY LEAVE UKRAINE AND TRAVEL TO SAFETY, AS SOON AS IT WAS POSSIBLE TO DO SO. ANOTHER LOAN ASSISTED A YOUNG WOMAN TO PAY FOR FOOD AND MEDICINE NEEDED BY HER ILL GRANDMOTHER IN ODESSA AFTER HER UNCLE, WHO WAS HER GRANDMOTHER'S CAREGIVER, WAS PUT OUT OF WORK BY THE WAR. THE LOAN FUNDS ALSO MADE IT POSSIBLE FOR HER TO COVER THE COSTS OF RESETTLING HER GRANDMOTHER AND UNCLE IN NORTHERN CALIFORNIA, ONCE ALL PAPERWORK HAD BEEN COMPLETED AND TRAVEL ARRANGEMENTS MADE.JUST AS IMPORTANT AS THE DIRECT IMPACT ON THE FAMILIES WHO RECEIVED THE LOANS, WE RECEIVED ENORMOUSLY POSITIVE FEEDBACK FROM THE COMMUNITY ABOUT THIS PROGRAM. GIVEN THE BAY AREA'S LARGE POPULATION OF JEWS WITH ROOTS IN UKRAINE, PEOPLE WERE COMFORTED BY KNOWING THESE LOANS WOULD BE AVAILABLE TO THEM AND THEIR RELATIVES IF THEY REQUIRED ASSISTANCE AT A LATER DATE. THE FACT THAT WE LAUNCHED THE UKRAINE ASSISTANCE LOAN PROGRAM WITHIN A WEEK OF THE INVASION REMINDED PEOPLE THAT NO MATTER WHAT HAPPENS IN THE WORLD, WE WILL BE HERE TO HELP IN THEIR TIMES OF GREATEST NEED.

BACK IN 2014, HEBREW FREE LOAN LAUNCHED THE POLLAK COMMUNITY LOAN PROGRAM TO EXPAND OUR REACH BY PROVIDING INTEREST-FREE STUDENT LOANS ON A NONSECTARIAN BASIS TO NON-JEWISH YOUNG PEOPLE FROM LOWER-INCOME HOMES THROUGHOUT THE BAY AREA. THE PROGRAM HELPS CLOSE FINANCIAL AID GAPS FOR STUDENTS WHO MIGHT NOT OTHERWISE BE ABLE TO ATTEND COLLEGE, WITH PARTICULAR FOCUS ON FIRST-GENERATION STUDENTS AND STUDENTS OF COLOR.WE LAUNCHED THE PROGRAM WITH FOUR NONPROFIT PARTNERS WORKING TO IMPROVE COLLEGE ACCESS AND SUCCESS, WHO REFERRED CANDIDATES TO US FOR CONSIDERATION. DURING THAT FIRST YEAR, WE MADE LOANS TO 18 STUDENTS, DISBURSING A TOTAL OF $108,000, AND WE HAVE BEEN GROWING THE PROGRAM EVER SINCE. DURING THE PROGRAM'S FIRST EIGHT YEARS OF EXISTENCE, WE HAVE DISBURSED A TOTAL OF $1.4 MILLION, SERVING 141 STUDENTS WITH 237 LOANS. SOME STUDENTS REQUEST ONLY ONE LOAN, WHILE OTHERS RECEIVE LOANS FOR ALL FOUR YEARS OF COLLEGE AND BEYOND. APPROXIMATELY 80% OF THE STUDENTS WE SERVE ARE FIRST-GENERATION COLLEGE STUDENTS.DURING THE 2021-22 FISCAL YEAR OUR POLLAK PROGRAM MADE LOANS TO 43 STUDENTS, DISBURSING A TOTAL OF $301,000. THIS IS THE HIGHEST NUMBER OF STUDENTS WE'VE SERVED IN ANY YEAR SINCE THE PROGRAM LAUNCHED IN 2014. THE NUMBER OF PARTNER AGENCIES REFERRING STUDENTS TO US GREW TO FOURTEEN (COMPARED TO THE ORIGINAL FOUR THAT WE STARTED WITH). IN ADDITION TO LOANS OF $6,000 FOR UNDERGRADUATE STUDENTS, WE BEGAN OFFERING LOANS OF UP TO $10,000 FOR STUDENTS PURSUING A GRADUATE OR PROFESSIONAL DEGREE. MOST OF THESE LOANS FOR GRADUATE STUDY SUPPORTED STUDENTS WHO HAVE FAR LESS ACCESS TO GRANTS AND SCHOLARSHIPS THAN DO UNDERGRADUATE STUDENTS, AND WHO WERE FACING SIGNIFICANTLY HIGHER INTEREST RATES FOR FEDERAL STUDENT LOANS.WHEN WE LAUNCHED THE POLLAK COMMUNITY LOAN PROGRAM IN 2014, OUR BOARD OF DIRECTORS DECIDED TO RAISE DEDICATED FUNDS FOR THESE LOANS, RATHER THAN USING UNRESTRICTED LOAN FUNDS RAISED IN PREVIOUS YEARS. WE MADE THAT DECISION TO RESPECT THE WISHES OF SUPPORTERS WHO HAD DONATED TO HEBREW FREE LOAN AT A TIME WHEN WE OFFERED LOANS ONLY TO MEMBERS OF NORTHERN CALIFORNIA'S JEWISH COMMUNITY, AND THE POLICY REMAINS IN EFFECT TO THIS DAY. 100% OF OUR BOARD MEMBERS MAKE AN ANNUAL CONTRIBUTION TO HELP BUILD THE POLLAK PROGRAM, AS HAVE WELL OVER 100 OTHER DONORS THROUGHOUT THE COMMUNITY. WE HAVE RAISED $1.3 MILLION IN LOAN CAPITAL, WHICH IS 65% OF OUR CAPITALIZATION GOAL OF $2 MILLION: THE AMOUNT WE BELIEVE IS NEEDED FOR THE PROGRAM TO BE SELF-SUSTAINING OVER THE LONG RUN.WE ARE PROUD OF OUR 125-YEAR TRADITION OF PROMOTING SELF-SUFFICIENCY AND FINANCIAL RESPONSIBILITY THROUGH INTEREST-FREE AND COST-FREE LENDING. WELL OVER 100,000 INDIVIDUALS AND FAMILIES HAVE BEEN ABLE TO ACHIEVE THEIR DREAMS OR OVERCOME CHALLENGING FINANCIAL SITUATIONS BECAUSE OF OUR WORK. IN THE LAST 32 YEARS ALONE (SINCE OUR RECORDS BECAME COMPUTERIZED IN 1990), WE HAVE DISBURSED OVER $100 MILLION IN LOANS, DESPITE STARTING THAT PERIOD WITH ONLY $4 MILLION IN ASSETS. AS LOANS ARE REPAID, THE FUNDS ARE RECYCLED INTO NEW LOANS, ALLOWING US TO UTILIZE OUR ASSETS TO ASSIST OTHERS IN NEED. DESPITE THE HARDSHIPS SO MANY EXPERIENCED BECAUSE OF THE PANDEMIC, OUR LOAN REPAYMENT RATE REMAINED AT 99.9%, AS IT HAS THROUGHOUT OUR AGENCY'S HISTORY.WE CONTINUED TO EXPAND THE HEBREW FREE LOAN BUSINESS CIRCLE, AN INITIATIVE WE LAUNCHED IN 2016-17. THE BUSINESS CIRCLE IS A STRATEGIC PARTNERSHIP OF LOCAL BUSINESSES WITH A SHARED COMMITMENT TO HEBREW FREE LOAN'S MISSION OF HELPING PEOPLE BECOME AND REMAIN SELF-SUFFICIENT. THE BUSINESS CIRCLE AFFIRMS HEBREW FREE LOAN'S HISTORIC COMMITMENT TO THE LOCAL JEWISH BUSINESS COMMUNITY, HELPING JEWISH ENTREPRENEURS LAUNCH AND GROW THEIR BUSINESSES, AND OFFERING NETWORKING, MENTORSHIP, AND PROFESSIONAL DEVELOPMENT. A SERIES OF VIDEO CONVERSATIONS CALLED FOOD FOR THOUGHT WAS CREATED TO OFFER A PLATFORM FOR EXPERTS FROM OUR BUSINESS CIRCLE COMMUNITY TO SHARE INSIGHTS FROM THEIR FIELDS THAT WOULD HELP PEOPLE NAVIGATE A WORLD MADE UNPREDICTABLE BY THE COVID-19 PANDEMIC. THESE VIDEOS ARE PERMANENTLY AVAILABLE ON OUR WEBSITE AND YOUTUBE CHANNEL. BUSINESS CIRCLE MEMBERSHIP HELD STEADY AT 38 BUSINESSES DURING 2021-22, DESPITE THE ECONOMIC UNCERTAINTY CAUSED BY THE PANDEMIC. THE BUSINESS CIRCLE RAISED $138,000 IN 2021-22 TO BENEFIT HEBREW FREE LOAN.OVER HEBREW FREE LOAN'S 125-YEAR HISTORY, WE HAVE ACCUMULATED OVER 50,000 DOCUMENTS, INCLUDING LOAN RECORDS, LEDGERS, CORRESPONDENCE, AND PHOTOGRAPHS. THESE MATERIALS PROVIDE A UNIQUE LENS INTO THE HISTORY OF JEWISH LIFE IN NORTHERN CALIFORNIA AND A RECORD OF JEWISH MIGRATION TO THE WEST COAST.OVER THE LAST SEVERAL YEARS, WE CONTRACTED WITH A COMPANY TO UNDERTAKE A FULL DIGITIZATION OF THESE RECORDS, AFTER WHICH WE DONATED THE ORIGINALS AND A DIGITAL COPY TO STANFORD UNIVERSITY LIBRARIES, WHICH IS PROVIDING A PERMANENT HOME FOR OUR ARCHIVES. DURING THE 2021-22 FISCAL YEAR, STANFORD BEGAN THE PROCESS OF CREATING A SEARCHABLE INDEX OF THE ENTIRE ARCHIVE. WHEN FULLY INDEXED, AND WITH CAREFUL PRIVACY PROTECTIONS FOR OUR DONORS AND CLIENTS IN PLACE, THE HEBREW FREE LOAN ARCHIVES WILL BE ACCESSIBLE TO HISTORIANS, JEWISH SCHOLARS, AND OTHERS FOR USE IN TEACHING AND RESEARCH FOR GENERATIONS TO COME.OUR TOP RATINGS AS A CHARITABLE ORGANIZATION WERE RENEWED BY VARIOUS EXTERNAL AGENCIES: CANDID/GUIDESTAR PLATINUM SEAL OF TRANSPARENCY; GREAT NONPROFITS TOP RATING; AND THE JEWISH NEWS OF NORTHERN CALIFORNIA READERS' CHOICE AWARD FOR FAVORITE CHARITABLE ORGANIZATION IN SAN FRANCISCO (FOR THE EIGHTH CONSECUTIVE YEAR).