Since the October 7 massacre in 2023, a loan fund established by the Jewish Federations of North America (JFNA) has extended over $240 million in financing to more than 4,100 small businesses across Israel, the organization reported Thursday. The fund, part of JFNA's Israel Emergency Campaign, was recognized at an event hosted by Israeli President Isaac Herzog at his residence in Jerusalem.
The loans have supported businesses that collectively employ an estimated 28,000 workers. Recipients include business owners serving in the Israel Defense Forces (IDF) reserves, companies displaced from border regions, and enterprises in the tourism and hospitality sectors whose revenues were severely disrupted by the ongoing conflict.
Founded in the months following the outbreak of hostilities, the Israel Small Business Loan Fund raised around $92 million in philanthropic contributions. This capital helped secure additional credit from banks, resulting in total lending exceeding $240 million. According to JFNA, funds repaid by borrowers are reinvested, with approximately 257 million Israeli shekels already re-lent. Less than 0.5% of the loans extended have been overdue by more than a year.
President Herzog commended the initiative for enabling business owners to safeguard their livelihoods and maintain local economies amid the war’s economic fallout. He described the assistance as a manifestation of collective Jewish responsibility and faith in Israel’s future stability.
Nearly half of the loans—about 48%—were directed to businesses located in northern Israel, communities near the Gaza border, and the northern Negev. Many recipients faced multiple challenges, including evacuations, conscription into reserve duty, and steep declines in revenue.
Becky Caspi, JFNA’s senior vice president, emphasized that the program was designed around the specific needs of entrepreneurs striving to stay operational under difficult circumstances. She cited examples such as shopkeepers in Kiryat Shmona and reservists managing businesses remotely, highlighting the critical role of affordable credit.
At the event, three business owners shared their experiences on a panel moderated by journalist Miri Michaeli. Hadas Cohen, who runs Studio Dosa, a jewelry business in Ramat Gan, used the loan to cover supplier payments while managing operations alone during her partner’s reserve service. Atar Levy, owner of the landscaping firm Ginot Atar, was evacuated with employees and called up for reserve duty; he later used financing to acquire essential equipment. Shirin Khatib, head of a language college in the northern Arab city of Shfaram, accessed a loan in June 2024 through the Koret Israel Economic Development Funds, which helped stabilize her business after wartime disruptions.
The loan fund operates through five lending platforms—Bizi, Daroma-Tzafona, Koret Israel Economic Development Funds, Ogen, and SparkIL—each targeting distinct groups such as border-area businesses, reservist-owned enterprises, Arab and Ethiopian-Israeli entrepreneurs, and borrowers who face difficulties securing traditional financing. Assistance includes short-term working capital, low-interest or interest-free loans, and business mentoring.
JFNA surveys conducted in 2024 indicated that 71% of Bizi loan recipients reported increased revenues compared to the previous year, while 96% maintained or expanded their workforce.