A Monmouth County family seeking a home improvement loan will be the first beneficiaries of the newly formed Hebrew Free Loan Society of New Jersey.

The newly formed society is a joint venture of the Hebrew Free Loan Society and the Jewish Federation of Greater Monmouth County, which has offered matching funding for its operation. With a dedicated staff person, Jewish Family & Children's Service of Greater Monmouth County will screen and process all prospective loan applicants.

The society will offer loans from $3,000 to $5,000 for personal use, or up to $25,000 for a business. Applicants must demonstrate residence in the community and a legitimate need for the money, as well as the ability to repay the interest-free loan.

During the first year of operations, the Hebrew Free Loan Society of New Jersey is providing $25,000 in seed money to launch the Monmouth office.

In the second year, both the society and the local community — in the case of Monmouth, it will be the federation — will each add $25,000.

In the third year, the local community alone will add another $25,000, for a total initial investment of $100,000.

The Monmouth office opened July 1 and received its first request from a family seeking a home loan.

"It's the highest form of tzedaka to help those people in need to help themselves. We thought this was very important to have in Monmouth," said Monmouth federation executive director Howard Gases.

Beth Krinsky, who serves on the board of the Monmouth federation, was elected to represent Monmouth County on the board of the Hebrew Free Loan Society. She said the service will be an essential lifeline for the more than 80 immigrants who recently settled in Monmouth County, as well as for "young couples who have not yet established themselves."

Paul Freedman, JF&CS of Greater Monmouth County executive director, welcomed the new effort.

"There are always people who find themselves unexpectedly in a situation where they could use extra income for medical or personal emergencies," he said. "The availability of this resource with this kind of support will be utilized."

Monmouth has become the first community to open a local office of the society, which represents an expansion of the Hebrew Free Loan Society of MetroWest, which served Essex and Morris counties.

Such loan societies were charitable cornerstones of historical Jewish communities.

The current society is an heir to one that was founded in 1870, closed in 1955, and then reopened in 1996. Since reopening, it has given out 82 loans totaling $630,000. With assets of $600,000, it receives between 45 and 60 calls in any three-month period.

"We felt we could do more good for more people by expanding," said Hebrew Free Loan Society president Arthur Schechner. "We're about Jews helping Jews."

According to Sheila Muster, who handles operations for the society and also serves as assistant executive director of Jewish Family Service of MetroWest New Jersey, the society has to decline about half the requests because they come from people out of the area.

By becoming a statewide agency with local offices in various towns, they won't have to turn so many people down, she said.

For Krinsky, the initiative is personal.

"I am a product of Essex County, helped by Jewish Family Services there at a very early time in my life," she said.

Schechner said they are prepared to handle 10 loans during the first year. "If we get more business than we can handle with $100,000, we'll consider investing more money," said Schechner.