Israel Discount Bank Launches NIS 300 Million Loan Fund for Northern Businesses

Israel Discount Bank announced on September 22 the establishment of a NIS 300 million credit fund named "Green North" aimed at businesses operating in northern Israel. The fund, presented at the Menara 2026 conference, is designed to assist businesses facing cash flow difficulties and operational disruptions in recent years.

Eligible businesses can apply for loans of up to NIS 1 million without collateral, with repayment terms extending up to 84 months and an option to defer principal payments for up to six months. However, the bank emphasizes that these are loans, not government grants, and all applications will undergo credit assessments, with no guarantee of approval for the maximum amount.

Interest rates for the "Green North" fund start at Prime plus 0.25%, potentially reaching Prime plus 1.5%, depending on the business's financial standing and the bank's decision. With the current Prime rate at 4.75%, this translates to an annual interest rate range of 5% to 6.25%. The fund also waives credit and collateral processing fees, and the bank aims to provide a response to applications within 72 hours of receiving all required documentation.

The fund is specifically for businesses located in the Haifa, Afula, and Beit She'an areas and northward. A key eligibility criterion is an average monthly activity of at least NIS 25,000 in a Discount Bank account, meaning the fund is not intended for all small businesses in the north. Businesses not currently banking with Discount Bank can apply, but approved applicants will be required to open an account and transfer their business activity to the bank. Failure to meet the monthly activity requirement could result in a 3% increase in the interest rate.

Businesses seeking to utilize this fund must submit a comprehensive financial profile, including audited financial statements, updated balance sheets, VAT reports for 2025 and 2026, details of liabilities, and proof of business address. While collateral requirements are eased, the bank will still assess the business's repayment capacity. The application period for the "Green North" fund is open until December 31, 2026.