New Israeli Loan Program to Aid Businesses in Gaza Envelope

Israel's "Tkuma" Directorate and the Ministry of Finance's Accountant General's office have launched a new NIS 200 million loan program, "Tkuma," designed to support small and medium-sized businesses in the Gaza Envelope region. The initiative aims to assist businesses in their recovery, development, and establishment within the "Tkuma" area, as well as those relocating their operations there. The program will provide accessible financing for working capital and investment needs.

Applications for the program will be accepted from September 1, 2026, to June 30, 2027. The loans offered can be up to NIS 500,000 or 8% of annual sales turnover. Interest rates will be capped at Prime plus 1%, with repayment periods extending up to seven years. A key feature is the reduced collateral requirement, necessitating only up to 10% of the loan amount. Borrowers will also benefit from a full exemption from state guarantee fees and the option to defer payments for up to nine months, including three months of full grace period and an additional six months on principal only.

Aviad Friedman, head of the Tkuma Directorate, stated that the program is a significant step towards ensuring long-term growth and prosperity for businesses in the region, fostering job creation and optimal development conditions. Gil Cohen, Senior Deputy to the Accountant General and Director of the Finance Division, added that the unique terms were specifically designed to lower barriers, improve credit accessibility, and ensure economic stability and security for businesses in the area.