The Loan Funds Initiative is one of the Jewish Agency's most successful programs for creating employment opportunities, impacting Israeli society and stimulating the economy in the priority regions of the Negev and the Galilee.

Many Israelis with entrepreneurial initiative and sound business ideas lack the collateral necessary to receive regular bank loans. The demands of the regular capital market prevent them from raising the initial capital needed to open their business. New immigrants and economically disadvantaged native-born Israelis thus stand little chance of receiving bank financing, no matter how promising their initiative may be.

The Jewish Agency Loan Fund addresses this unmet need. The Jewish Agency contracts with the banks to undertake part of the financial responsibility in the event of default of repayment. The Jewish Agency guarantees the loans if the applicant falls within the designated criteria.

Over 1000 applicants have received loans over the past nine years, and many businesses are now flourishing in the Negev and the Galilee, from bakeries to high tech companies. At the same, these businesses are providing employment opportunities for local residents.