Israel Launches $53 Million Loan Program for Businesses in Gaza Envelope

Israel's Ministry of Finance and the Resilience and Development Authority for the Gaza Envelope (Takuma Administration) have launched a new loan program totaling NIS 200 million (approximately $53 million USD) to aid small and medium-sized businesses in the region. The initiative, named "Takuma Track," aims to support the recovery and development of businesses operating within or relocating to the Gaza Envelope.

The loans will be provided with state guarantees and preferential terms, including an interest rate capped at Prime plus 1%, a maximum loan amount of NIS 500,000 (approximately $133,000 USD) or 8% of the business's last full fiscal year revenue, whichever is higher, and a repayment period of up to seven years. Businesses will also benefit from a state guarantee fee exemption and a grace period of up to nine months, with the option for three months of no payments followed by six months of interest-only payments.

Eligibility extends to companies, licensed dealers, small and medium-sized businesses, and non-profits registered and operating in the Gaza Envelope communities. Businesses currently located outside the area can also apply if they commit to relocating their operations, provided they present proof of address change. Applications will be accepted from September 1, 2026, to June 30, 2027.

Aviad Friedman, head of the Takuma Administration, stated that the program is designed not only for immediate recovery needs but also to foster long-term growth, job creation, and business sustainability in the region. Gil Cohen, head of the finance division and deputy to the Accountant General, emphasized that strengthening local businesses and employment is crucial for the area's rehabilitation, describing the funding as accessible, flexible, and competitive.