North American Jewish Federations Fund Israeli Businesses With $240 Million

The Jewish Federations of North America (JFNA) announced that its loan fund has provided over $240 million in financing to 4,132 small businesses in Israel since the October 7th attacks. Israeli President Isaac Herzog hosted an event at his Jerusalem residence on Thursday to honor this initiative. According to JFNA, these loans have supported companies that provide an estimated 28,000 jobs.

Recipients include reservists in the Israeli military, businesses displaced from border communities, and tourism and hospitality companies whose revenues were impacted by the war. The JFNA established the "Israel Small Business Loan Fund" in the months following October 7, 2023, as part of its "Campaign for Israel," which raised over $900 million. The loan fund itself garnered approximately $92 million in charitable donations, which helped secure additional financing from banks, enabling the total loan amount to exceed $240 million.

Repaid loan amounts are being used to fund new loans. JFNA reported that nearly 257 million Israeli shekels have been re-lent, with less than 0.5% of the total lent capital experiencing delays in repayment exceeding one year. Herzog praised the initiative for helping business owners maintain their livelihoods and support their communities amidst economic disruption, calling the support a "manifestation of shared Jewish responsibility and confidence in Israel's future."

Approximately 48% of the loans went to businesses in northern Israel, communities near the Gaza border, and the northern Negev. Some borrowers faced multiple challenges simultaneously, including displacement, reserve duty, and reduced revenue. Becky Caspi, Senior Vice President at JFNA, stated the initiative was designed to meet the practical needs of business owners seeking continuity, citing examples like shopkeepers in Kiryat Shmona and reservists managing businesses from military bases.

Hadas Cohen, owner of "Studio Dosa," a jewelry business in Ramat Gan, managed operations alone after her husband and business partner was called to reserve duty. The loan helped cover supplier payments and cash flow needs. Attar Levi, owner of "Ginot Atar" landscaping, was displaced with his staff and called to reserve duty himself; he used the funds to purchase a tractor, trailer, and professional equipment upon resuming business.

Shireen Khatib, who manages a language institute in the Arab city of Shfaram with five employees, received a loan in June 2024 from the "Koret Israel Economic Development Funds." This financing, along with professional guidance, helped stabilize her business after war plans disrupted her expansion. The initiative operates through five lending platforms: Bizi, Daroma-Tzafona, Koret Israel Economic Development Funds, Ogen, and SparkIL, serving diverse groups including border communities, reservist-owned businesses, Arab and Ethiopian-Israeli entrepreneurs, and those struggling to secure traditional financing.

Surveys this year showed 71% of borrowers in the "Bizi" program achieved higher revenues post-loan, while 96% maintained or increased their workforce. Sarah Gottlieb, Chair of JFNA's Israel and the Diaspora Committee, explained the fund is designed so donated capital finances successive lending rounds as businesses repay their loans.