Israeli President Isaac Herzog, at an event at his residence in Jerusalem, recognized the Jewish Federations of North America (JFNA) loan fund, which has provided more than $240 million in financing to 4,132 small businesses across the country since October 7, 2023. As reported by the Jerusalem Post, according to JFNA, these businesses support around 28,000 jobs.
Loans were received, in particular, by business owners called up for reserve duty in the Israel Defense Forces, businesses forced to relocate from border communities, and companies in the tourism and hospitality sector whose revenue declined because of the war.
Funds and repeat lending
JFNA established the Israel Small Business Loan Fund in the months following October 7, 2023, as part of its emergency assistance campaign for Israel. In total, the campaign raised more than $900 million. The fund itself raised about $92 million in philanthropic capital, which helped secure additional bank financing and issue loans totaling more than $240 million.
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Funds repaid by borrowers are directed toward new loans. According to JFNA, approximately 257 million shekels in repaid funds have already been reissued, while less than 0.5% of the capital issued was overdue by more than a year.
Support for border regions
About 48% of loans were directed to businesses in northern Israel, in communities near the Gaza Strip border, and in the northern Negev. Some borrowers faced evacuation, reserve service, and falling revenue at the same time.
The initiative operates through five lending platforms: Bizi, Daroma-Tzafona, Koret Israel Economic Development Funds, Ogen, and SparkIL. They offer short-term working-capital financing, low- or zero-interest loans, and business consulting. According to JFNA survey results this year, 71% of surveyed Bizi borrowers reported increased revenue compared with the year before receiving a loan, while 96% retained or increased their workforce.
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