What EXACTLY is Jubilee Financial Plan?
Jubilee is a MINISTRY of Beth-El Worship Center which is an online church.
The program is designed to provide a way to pay off those stressful debts like student loans and high interest credit cards with a ZERO percent interest loan from the Jubilee Plan. Jubilee Plan loans are ZERO PERCENT interest, ZERO FEES and very flexible terms. Repayment is set to begin seven years after your first loan is processed.
Additionally, Jubilee plan members who are also members of Beth-El Worship Center will have their loans CANCELED after seven years, in accordance with our adherence to Scripture, namely Deuteronomy 15:1–“At the end of every seven years you must cancel debts.”
Do I have to be a member of Beth-EL Worship Center to participate?
You do not have to be a member of Beth-el Worship Center to participate in the loan program. You do have to be a member of Beth-El Worship Center in order to participate in the Loan Cancellation program, however. Deuteronomy 15:1 requires that all loans to “brothers and sisters of the faith” be forgiven every seven years.
How many loans can I take out in a month?
You make take as many loans as you have Loan Shares For. There is a minimum loan amount of $100.
Is this considered income and do I have to pay taxes on the loan?
No. Loans are not considered income by the IRS unless you default on them. Should a default occur, we are obligated to report the uncollected amount of the loan as income on a 1099-C if the amount exceeds $600.
If you participate in the Loan Cancellation program, the IRS may very well consider this income and if that is the case, you are responsible for paying the taxes on the amount of the loan that is canceled.
Do you report any of the loan transactions to any credit reporting agency?
No. We are a ministry, not a bank or financial institution. All transactions stay within our ministry.
Can I use the proceeds of my loan for other things like purchasing major items that I would need credit for?
While it is advisable to use the proceeds from a loan for repaying debts, we make the total sum of the loan available to you. We do not require the names of any of your creditors or any other personal information that would put us between you and them. We expect members to do the right thing in all situations. What you use your loans for ultimately is up to you.
When do I have to have my loan paid off by?
Our only requirement for loans is that you BEGIN the payback with the seven year window that begins with your first loan. You determine how much the payments will be, which will determine how long the payback terms are for.
Is there a penalty for missing payments once I begin paying off my loans?
No. But we do reserve the option of reducing the amount of your “Loan Share Account” by the amount of your payment.
Your example for building my Loan Share Account uses four people. Am I limited to sponsoring just four?
There are no limits to the amount of people you can sponsor. We use four in the example because we are pretty certain that most people can find at least four other people who have enough debts and are stressing out behind them to be interested in such a program.
Can I use the proceeds from my loan for a downpayment on a home?
From Jubilee’s perspective, you may use the loan proceeds for any legal purpose you desire. However, some mortgage and banking institutions have limitations on where you may get the money from. They sometimes require bank statements to see if the funds suddenly arrived in your account to make certain that you did not go out and borrow the funds from someone else. You should check ahead of time to see what the requirements for your particular institution are.
We would suggest that you hold off on purchasing that home until you have enough in your Loan Share Account to make the purchase. You would then be without a mortgage and technically would own the home outright since there are no collateral requirements for a Jubilee Plan loan.
What happens if one of my members drop out of the program?
We will make every effort to fill any drop outs with Jubilee recruits if that happens. If we are unable to do that, your Loan Share Account will probably be affected, but only for that one member. Any members who were sponsored by that member will still be in place generating Loan Shares for you.
Since membership dues are paid monthly, does that mean my Loan Share Account will be credited each month?
Yes. This is a residual based system and as long as a member you sponsored pays their monthly dues, your Loan Share Account will be credited as donations are received. Because members’ donations come in at various times, your account could conceivably be updated daily.