North American Jews Aid Thousands of Israeli Businesses Post-War

The Jewish Federations of North America (JFNA) have provided significant financial assistance to thousands of Israeli businesses impacted by the ongoing conflict. The initiative, launched in response to the war's economic fallout, has raised approximately $92 million in philanthropic capital over the past two and a half years.

Through partnerships with financial institutions and leveraging bank loans at a ratio of roughly four to one, the JFNA has extended over $240 million in loans to 4,132 businesses. These loans are estimated to support around 28,000 jobs. Nearly half of the funding, 48%, was directed to businesses in northern Israel, Gaza border communities, and the northern Negev, areas most severely affected by the fighting.

The program also addressed businesses struggling with extended employee absences due to reserve duty and sectors like tourism and hospitality that were hit hard. A key feature of the fund is its revolving nature: repaid loans are re-lent to other businesses, creating a continuous cycle of support. Approximately $80 million from repayments has already been re-lent without requiring new donations.

On Thursday, Israeli President Yitzhak Herzog hosted an event at the President's Residence to honor the JFNA's loan fund. "When the war broke out, North American Jewry did not ask what Israel needed abstractly. We asked the shop owner in Kiryat Shmona, the reservist managing a business from base, and the family business in the Gaza envelope what would be required for them to continue opening their doors," said Beki Kaspit, Senior Vice President of the JFNA. "The answer was credit they could afford, and we made sure they received it."

President Herzog lauded the initiative, stating, "In this reality that has been imposed on Israel since October 7th, many small and medium-sized businesses faced enormous obstacles, not stemming from faulty business decisions or lack of demand, but from the harsh reality of the war. In this reality, the JFNA's loan fund stood by business owners, and through its activity, it preserves economic activity, saves livelihoods, strengthens communities, and expands the window of hope for hundreds of business owners across the country."

The JFNA operates through five professional loan platforms tailored to different business needs based on location and challenges. These include rapid digital loans for businesses near borders, support for reservists, and assistance for businesses in hard-hit sectors. Data from the fund indicates signs of recovery, with 71% of borrowers reporting higher revenues and 96% maintaining or increasing employee numbers.