Jan 4, 2024

Miami’s Jewish Community Helping Hard-Hit Israelis Through Interest-Free Loans

Since Hamas’ horrific terrorist attack in Israel on October 7, thousands of Israeli lives have been upended and the country’s economy has been in turmoil. More than 360,000 reservists were called to active duty during the ongoing conflict, away from their jobs and families. Small business owners, especially those in the south near Gaza, are unable to conduct business as usual. Countless Israelis have lost their homes, loved ones and/or livelihoods. Now, some of these Israelis will receive critically needed financial assistance through a unique partnership involving creative philanthropy, the Greater Miami Jewish Federation Hebrew Free Loan Association of Miami (HFLA), the International Association of Jewish Free Loans (IAJFL), and Ogen — Israel’s largest free loan association.

Helping Jewish people in need is nothing new to Miami’s Jewish community. HFLA has been offering interest-free loans to Jewish individuals and families in Miami who may not qualify for normal loan resources. HFLA, a program of the Greater Miami Jewish Federation, is a member of IAJFL.

This Israel initiative, however, arose out of an unusual set of circumstances. A couple — relatively new to Miami — heard about a program spearheaded by IAJFL and felt inspired by the prospect of helping Israelis facing economic crisis as a result of the war. They approached Federation and offered to significantly increase the loan capital available for such an investment. The result was the investment of over $500,000 to Israelis suffering financially after October 7. Federation funding came from a fund created by the late Leo Gelvan, as well as additional donations from individuals.

“For decades, HFLA has been passionately working in Miami to help Jewish people get back on their feet through the use of interest-free loans,” said Federation Board member Jaclyn Bergman, who chairs the HFLA Committee in Miami. “Now we are able to also direct this important help to people in Israel, so they can take care of their families’ needs during the war.”

“Using the funds in this way is exactly what Leo Gelvan, of blessed memory, envisioned when he started his loan fund many years ago through the Greater Miami Jewish Federation,” said Federation Past President Norman Lipoff, who advises Federation on the use of the Leo Gelvan Loan Fund. “Leo remembered there being interest-free loans available in his native Poland and thought it critical that Miami’s Jewish community follow this tradition of gemilut chasadim — acts of loving kindness. Since its creation, the Leo Gelvan Loan Fund has provided thousands of dollars in interest-free loans to Israeli individuals, families and small businesses, helping them overcome a variety of economic challenges. Today, with the war raging on and so many suffering financially, the fund will provide much-needed relief at a most challenging time.”

The investment from Miami’s Jewish community, transmitted at the end of December 2023, is part of over $3.4 million in interest-free loan capital being provided through IAJFL to Ogen, a nonprofit social lending enterprise in Israel that is a member organization of IAJFL. Ogen will provide interest-free loans to assist tens of thousands of Israelis who are having difficulty meeting their basic needs. Loans will support those who:

• Lost their possessions or their homes in the terrorist attacks
• Lost their sources of income due to the attacks or the subsequent impacts of war
• Are living in conflict zones

The funds IAJFL agencies are lending to Ogen will be used to provide individuals and families with interest-free emergency relief loans of up to 60,000 shekels (approximately $15,500). Ogen will repay IAJFL and the participating agencies within five and a half years. 

“This extraordinary support from our IAJFL sister agencies in the US is heartwarming and extremely valuable,” said Eldan Kaye, Vice President, Development & Partnerships of the Jerusalem-based Ogen. “We have had over 10,000 inquiries and $81 million in loan applications in two months, representing a 216 percent growth in activity in comparison to last year. It means a tremendous amount to Ogen to know we’re all in this together and the international Hebrew Free Loan community has our back."

In addition to these loans to individuals, Federation is providing loans to small businesses in Israel through the Jewish Federations of North America’s $25 million commitment for the JFNA Israel Emergency Loan Fund, as well as loans to small businesses through our overseas partner, The Jewish Agency for Israel.

The funds contributed for the interest-free loans are in addition to more than $29 million raised by the Greater Miami Jewish Federation Israel Emergency Fund since the war with Hamas began. In all, Jewish federations across North America have raised more than $762 million to support immediate and long-term needs in Israel arising from the war.

To learn more about HFLA, contact Maayan Blum, Federation’s Director of Community Planning, at [email protected]. For more information about the Israel Emergency Fund, email Dahlia Bendavid, Director of Federation’s Israel and Overseas Department, at [email protected].