The Security Infrastructure Loan Program provides interest-free loans of up to $150,000 to Jewish communal organizations in New York City’s five boroughs, Westchester and Long Island to enhance the ability of these institutions to prepare, prevent, and respond to terrorist attacks and other security threats. Agencies may use the loans for planning, equipment, training, and physical infrastructure improvements. This program is a partnership with UJA-Federation of New York.
FOR AGENCIES THAT HAVE GOVERNMENT SECURITY GRANTS
Government security grants require agencies to pay up front for the work and then to submit receipts for reimbursement, which causes a cash flow problem for some agencies to the point that they are unable to take advantage of the award. This program provides interest-free bridge loan financing to ensure that grant awardees can proceed with the work necessary to increase security and safety for their community.
Loans are available up to $150,000 and must be repaid in full upon receipt of reimbursement from the grant-making government agency or within six months of the loan date.
If a borrowing agency veers from their government grant approved work plan with the result that some of the costs for the project are deemed not reimbursable by the government, HFLS will still require repayment in full.
Agencies that have government grants and seek to apply for a Security Infrastructure Loan can apply either based on their own creditworthiness or based on the creditworthiness of guarantors.
Agencies applying based on their own creditworthiness must:
Provide financial statements including a cash flow analysis that demonstrates that the agency can repay the loan in six months following the expenditure if for any reason the grant is not paid.
Provide a signed copy of the Security Agreement, which 1) gives HFLS a first-priority lien on the portion of the grant funds covered by the HFLS loan, 2) obligates the borrowing agency to do what is necessary to obtain payment of the grant, and 3) in the very unlikely event that the grant or the improvements made by the borrowing agency result in any liability or cost to HFLS, the agency agrees to pay such liability or cost (except if HFLS is the guilty party).
Agencies applying based on the creditworthiness of guarantors must:
Provide 1-4 guarantors that meet the criteria outlined below under Guarantor Requirements.
FOR AGENCIES THAT DO NOT HAVE GOVERNMENT SECURITY GRANTS*
*Only applicable for Institutions in New York.
Similar to the program above, but as these agencies do not have a guaranteed third-party source of repayment, they must provide guarantors for the full amount of the loan.
Loans are available up to $150,000 and may be repaid in six to ten monthly installments, with the maximum monthly payment imposed by HFLS set at $25,000 (for a six-month repayment term on a loan of $150,000). As with all HFLS loan programs, borrowing agencies may opt to repay their loan in larger installments and/or over a shorter term. Loan repayments will begin the month after the agency receives their loan.
As these agencies do not have government security grant awards, they must:
Submit a security infrastructure plan for HFLS approval, and provide two guarantors OR one guarantor plus financial statements including a cash flow analysis that demonstrates that the agency can repay the loan in ten months following the expenditure.