Their Time of Need

In the face of unprecedented challenges, the Jewish Federations Israel Emergency Loan Fund has emerged as a crucial support system for businesses across Israel. Severely impacted by the ongoing war and lacking access to traditional banking credit, these businesses have found a lifeline through this innovative fund.

Strategic Allocation for Maximum Impact

The Loan Fund, managed by the Jewish Federations of North America (JFNA), operates through its Investment Committee. This committee allocates funds to fully-vetted loan platforms, each specializing in providing loans to small businesses in specific markets and sectors. These allocations enable the platforms to offer lower interest loans and cover default risks, thereby leveraging larger scale loans from banks. This strategic approach ensures that the support reaches a broad spectrum of small businesses, sustaining tens of thousands of jobs.

Addressing Unparalleled Economic Strains

The Loan Fund was established to help businesses survive the severe economic strains following the events of October 7. The near-complete shutdown of economic activity in the Western Negev and across the northern confrontation line, the displacement of 140,000 residents, the collapse of tourism, and the mobilization of nearly 300,000 reservists have all contributed to a dire economic situation. Government programs have left sizable gaps, and Israeli banks are typically reluctant to issue loans to small businesses. The Loan Fund steps in to fill these gaps, bringing North American philanthropic dollars forward to address the needs of Israeli businesses.

Significant Financial Support

Jewish Federations have raised $70.4 million for emergency loan funds. Of this, $51.5 million has been allocated (or is soon to be allocated) by the Loan Fund to five strategic partners who manage the loans on behalf of the Federations. An additional $18.9 million has been directly allocated by individual Federations and other funders to these loan platforms. To date, the loan platforms have awarded $75 million in loans to over 1,300 businesses, ranging from individual enterprises to small businesses. The total loan amount is expected to grow to over $200 million as the funds raised are fully allocated and used by the platforms.

Ongoing Need for Support

As we enter the second year after the horrors of October 7, the need for business loans continues to grow. Israeli businesses are under increasing pressure as the war with Hamas, Hezbollah, Iran, and other proxies persists. The loans provided through the Loan Fund are essential for business owners to maintain their livelihoods and dreams, as well as those of their employees, during this challenging time.

A Higher Level of Charity

The support provided by the Loan Fund aligns with what Maimonides recognized 850 years ago as the highest level of tzedakah (charity). By enabling business owners to sustain themselves and their employees, the Jewish Federations are not only supporting the Israeli economy but also upholding a profound tradition of charity and community support.

Through the Jewish Federations Israel Emergency Loan Fund, North American philanthropic efforts are making a tangible difference, providing a lifeline to businesses in need and helping to sustain the Israeli economy during these trying times.