Utilizing the infrastructure of the Jewish Agency's successful Small-Business Loan Fund which we have operated for more than a decade with the support of Jewish Diaspora communities, we propose to generate massive economic energy by creating an unprecedented evergreen mega loan fund to support economic recovery and growth throughout the north—and head off a serious recession.
This proposal outlines a comprehensive solution for refueling the Israeli economy by providing financial aid to businesses in the North through an Emergency Small-Business Loan Fund. This Fund incorporates three intertwining venues: a small-business loan fund, immediate turnover assistance, capital assistance, and the establishment of a center for economic research in the North. The Jewish Agency works in partnership with the financial institutions. Loan Fund money can be leveraged via partners financial institutions. The Israeli Ministry of Finance has expressed initial interest in matching every two dollars that we raise with one additional dollar.
An influx of funds to this bombarded region can revitalize the country’s economy similarly to the manner in which the USA economy was revived following the GI Bill after World War II. As part of this venture, donors will be invited to partner with supported communities and form joint initiatives to encourage regional business development. The communal efforts of the Jewish People to revitalize Israel’s economy can be considered a “Jewish Marshall Plan”.
The Need
Numerous economic analyses have pointed to the fact that small and medium sized enterprises are at the heart of northern Israel's economic activity.
The recent war in the north inflicted greater damage on small businesses than on the region's larger companies and factories that for the most part have deeper financial reserves. The war took place during a period that is the "high season" of northern commercial activity, especially small businesses in varying sectors such as tourism, service, commerce and small and micro industry.
The uncertainty caused by the war has made it difficult for small businesses to find a helping hand among the country's banks for the purpose of arranging additional funding. Therefore, significant, yet important support is required in order to ease the cash flow hardships facing small businesses in the north whose activity was paralyzed for a full month, sometimes more.
This program will directly impact small businesses in the north that employ up to 30 workers. Indirectly, the program will impact Israeli economy as a whole, in particular the economy of northern Israel.
The Jewish Agency Response
Based upon the Jewish Agency’s expertise in running a small business loan fund we propose implementation of a comprehensive program that will incorporate a small-business loan fund, immediate proceeds, physical infrastructure aid and the establishment of a center for economic research in the North.
Photo Credit: Naftali Hilger