Gov’t launches cheap loan program for small businesses

The plan calls for all existing funds for small- and medium-sized businesses to be merged into one large new fund.

January 3, 2012 06:06
1 minute read.
business loan

business loan_311. (photo credit: Thinkstock/Imagebank)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

The accountant-general’s department at the Finance Ministry, and the Small Business Authority of Israel of the Industry, Trade and Labor Ministry, published a tender on Monday for banks to provide loans to small- and medium-sized businesses for four years, for which the government is providing a NIS 500-million guarantee.

“The granting of government- backed credit to small and medium-sized businesses is an extremely significant step. These loans will help thousands of businesses a year,” the Industry, Trade and Labor Ministry spokesperson’s office stated.

Be the first to know - Join our Facebook page.

The plan calls for all existing funds for small- and medium-sized businesses to be merged into one large new fund, through which the banks will leverage the state guarantee to more than NIS 2.5 billion.

The main novelty of the new tender is that small and medium- sized businesses in the setup stage will be eligible for much larger government guarantees.

Bureaucratic changes will significantly shorten the time required to receive a loan.

The banks that will participate in the tender will be required to leverage five times the amount of funds they receive from the state, so that the total amount of credit that will be injected into the fund will be over NIS 2.5 billion.

In light of the complexity of the tender, and the large amount of funds the government is guaranteeing, the Industry, Trade and Labor Ministry and the Finance Ministry will hold a conference on January 25, 2012, in Jerusalem, where potential recipients can learn about the fund’s procedures and its implementation.

The last date for recipients to bid for the tender is February 1, 2012.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection