Employees often have emergency expenses to pay for health/dental care, school or child care, auto/ home repairs, or other unforeseen situations. Unlike high interest loans, the Hebrew Free Loan is repaid with no interest. It is a great alternative to hardship withdrawals from 401(k) plans.
Once an employer agrees to be a part of the Hebrew Free Loan Employee Assistance Program, at no cost to the employer, a Hebrew Free Loan representative will work with the Human Resource department to implement a quick and easy loan process. The loan will be repaid from authorized payroll deductions, in accordance with the payment schedule set forth in the loan agreement, beginning on a scheduled payday. The loan may be paid back early without penalty.
Employee must be employed full time for at least two years with the employer and be a resident of Southern Arizona including Pima, Cochise and Santa Cruz counties. Eligibility for the loan program will be assessed once a loan application is received.
The loan is through the Hebrew Free Loan of Tucson. The employer makes this program available on a voluntary basis. The loan process is confidential.
If employment should terminate for any reason, the full balance of the loan will be taken out within accordance with the wage and hour law from the final paycheck. The employee is ultimately responsible for repaying the loan after they leave the job. Employee must provide voided check or credit card at time of signing final loan paperwork with the Hebrew Free Loan representative. The employee will sign a waiver giving the Hebrew Free Loan permission to withdraw automatic monthly payments from checking account or credit card.
Each organization is granted up to two loan defaults. After two defaults (even if borrower is no longer with the organization), the program will be cancelled. The organization may pay off the loan balance to reinstate the program for their employees.