Program Details
Business Startup Loans
Trade School Loans
Postgraduate Degree Loans
Business Startup Loans
Terms
Loans $1,000.00 to $20,000.00
Max: 60% of startup costs
New businesses only
Repayment begins one year after loan. Then, quarterly payments are due:
- Year 1: 5% per quarter
- Year 2: 8.75% per quarter
- Year 3: 11.25% per quarter
Only for those with financial need
Requirements
- Overview of business startup costs
- Describe how funds of loan are expected be spent, and an annual accounting demonstrating the loan dollars were spent or kept in the business
- Annual showing the business is operating
- A business plan
- Incorporated business entity
- Required reading of 4 business introduction courses:
1. Why Record keeping is Vital and How to Do it
2. 10 Bookkeeping Basics You Can’t Afford to Ignore
3. 3 Basic Financial Statements You Need to Keep Track of Your Money
4. 12 Month Cash Flow Statement
Examples: New business from scratch, franchise, etc.
Trade School Loans
Terms
Loans $500.00 to $15,000.00
Max: 67% of tuition cost
Repayment begins one year after loan. Then, quarterly payments are due:
- Year 1: 4.5% per quarter
- Year 2: 5.5% per quarter
- Year 3: 7% per quarter
- Year 4: 8% per quarter
Requirements
Proof of acceptance into program
Proof of total tuition cost
If the program is longer than 6 months, proof of continued progress and good standing in the program, twice a year
Proof of program completion
Schedule of payments due to the educational institution (loan amounts are paid directly to the institution)
Examples: Electrician, HVAC, automotive technician, paramedic, medical billing and coding, etc.
Postgraduate Degree Loans
Terms
Loans $1,000.00 to $20,000.00
Max: 67% of tuition cost
Repayment begins 6 months after graduation, (max 3½ years after loan). Then, quarterly payments are due:
- Year 1: 5% per quarter
- Year 2: 8.75% per quarter
- Year 3: 11.25% per quarter
Requirements
Proof of acceptance into program
Proof of total tuition cost
Annual proof of continued progress and good standing in the program
Proof of program completion
Schedule of payments due to the educational institution (loan amounts are paid directly to the institution)
Examples: Masters in Accounting, Masters in Counseling, Masters in Applied Behavior Analysis, Masters in Speech Language Pathology, Juris Doctor, etc.
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General Terms
- Loans require 2 Cosigners*. Cosigners are required to immediately make payments that are not fully satisfied by the Borrower in a timely manner. This can include quarterly payment amounts, the full outstanding loan amount (if applicable), any court or Beis Din costs – and the Gemach’s reasonable expenses – necessary to enforce missed obligations. Both Cosigners will be liable for amounts due under the loan (i.e. the Gemach would seek payment in full from both Cosigners).
- Applicants must be at least 18 years of age.
- Loans are for individuals who reside in Metropolitan Detroit, Michigan for the loan period.
- A Pruzbul will be made so that loans are not erased by Shemitah.
- Borrowers are responsible for determining any tax ramifications on him/her.
- The Borrower is responsible to perform their obligations. The Gemach is not responsible to remind Borrowers that deliverables are due.
- The following violations of the Loan Agreement can result in the loan becoming due in full:
- Missing a payment
- Failing to provide any of the proofs required in the Loan Agreement
- A payment that fails to clear financial institution on the first try
- Borrower declaring, or filing for, bankruptcy
- The elimination of the need underlying the loan (i.e. the Borrower stops the business or education program).
- When the loan is repaid in full, the Gemach will provide a copy of the Loan Agreement that is marked “PAID” as evidence the loan has been fully satisfied.
Note: Cosigners may not be related to the Borrower in the following ways: Spouse, child, son-in-law, or daughter-in-law. In addition, the 2 Cosigners for a single loan cannot be spouses. Cosigners cannot be a Rabbi with an administrative role in a communal institution. Cosigners must be at least 25 years of age, cannot have an outstanding loan of their own with the Gemach or have a past loan with the Gemach that experienced a default.