History
The concept for Hebrew Free Loan is based on the Mitzvot of Biblical writings that became the tradition of the Jewish people. These traditions of charity were brought to the Americas from Central and Eastern Europe.
In 1895, the Hebrew Free Loan of Detroit had its beginnings in the back room of a shoemaker’s store. Ten men, all from different vocations, pledged $50 each and began to lend out money, mostly to peddlers needing merchandise and to others for purchasing coal for heating. Reading the Detroit News reports on the pogroms in Eastern Europe, these men anticipated the large wave of immigration that was on the horizon.
The ten men who started HFL conducted the interviews, administered the loans and were responsible for collecting monies owed. They incorporated with a state charter under the name of Gmilith Chasudim (Acts of Loving Kindness). The loan amounts were in the $5 - $25 range. They raised funds by accepting donations and receiving bequests. A person could commit to a pledge of as little as 5 cents a week for a year. In 1908, $900 was raised hosting a dance ball. By the turn of the century, HFL started to have formal meetings with handwritten minutes that have been preserved. Officers and directors were elected.
In addition to making loans for many domestic purposes, HFL was effective in every wave of immigration to come to Detroit: during the late thirties the German Jews, after World War II the Displaced Persons, in the fifties and sixties the Hungarian and Iranian Jews, and later the large waves of Russian Jews. The first priority for these newcomers were loans to retrieve their baggage. The second priority was transportation. Detroit had grown so large that it was impossible for people to navigate looking for work without a car. The third priority was for a security deposit for housing. HFL instituted loan programs for all of these priorities.
Thirty years ago, HFL Detroit was one of the founding members of the International Association of Hebrew Free Loans (IAHFL) and brought together Free Loan Associations from the USA, Canada, Israel and Australia. Through this affiliation, HFL has been able to learn from others about new programs, such as adoption and in-vitro. About ten years ago, HFL branched out to other Michigan cities that are not in the tri-county area, providing services to those communities as well.
Today, of course, the issues are different and the financial needs much greater. Now we help first-generation Americans pay for college, couples afford an expensive adoption process, individuals who have recently been laid off work manage their bills, and start new business ventures. Over ninety-eight percent of our loans are repaid and a great number of loan recipients become donors who do their part to help sustain the work of Hebrew Free Loan.
If you know of someone in need of a loan, perhaps we can help. Contact us at info@hfldetroit.org
or (248) 723-8184.