Israel Launches $54 Million Loan Program for Gaza Envelope Businesses

Israel's "Takoma Administration" and the Ministry of Finance have launched a new state-guaranteed loan program totaling 200 million shekels (approximately $54 million USD) aimed at bolstering small and medium-sized businesses in the Gaza Envelope region and encouraging others to relocate there. The initiative, dubbed "Takoma Track," offers preferential terms including low interest rates, reduced collateral requirements, and a waiver of the state guarantee fee.

Eligible businesses can apply for loans of up to 500,000 shekels or 8% of their annual turnover, whichever is higher. The loans will carry an interest rate of up to prime plus 1% and can be repaid over seven years. Business owners will only need to provide collateral amounting to 10% of the loan value. Additionally, a grace period of up to nine months is available, comprising three months of full payment deferral followed by six months of principal-only deferral, subject to lender approval.

The program is open to small and medium-sized businesses, companies, licensed self-employed individuals, and non-profit organizations operating within the Gaza Envelope communities. Businesses seeking to relocate their operations to the region are also eligible, provided they update their official business address.

Applications will be accepted from September 1, 2026, to June 30, 2027. Aviad Friedman, head of the Takoma Administration, stated the program is a significant step for the local economy, aiming to foster strong, expanding businesses that create jobs and commit to the region long-term. Gil Cohen, Senior Deputy to the Accountant General and Director of the Financing Division, emphasized that business growth in the area is a national mission, with the financing track designed to be accessible and flexible to reduce barriers and provide economic stability for entrepreneurs and companies.