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Last Updated on September 12, 2012

Opening a Business in Israel & Getting a Business Loan

Hebrew: הקמת עסק בישראל – הלוואות לעסקים


Small Business Loans 

300,000 Shekels small business loans are available to new immigrants


The Ministry of Absorption

New, returning residents can receive 250,000 NIS loan, professional advice to open company in Israel and will provide half of minimum wage for employers who hire olim. This is a new campaign to help and encourage new immigrants or returning residents who previously left the country and have now returned, to establish new businesses in Israel.

New immigrants and returning residents will receive a package of benefits to start new businesses in Israel. The package includes a loan, up to 250,000 NIS (Nearly $80,000), with convenient conditions and professional business help from accountants and financial and marketing advisors, who will be assigned to help build a business plan and open the business itself, all before the immigrant arrives in Israel.

Koret Foundation Israel Economic Development Fund

The AACI has partnered with the Koret Foundation’s Israel Economic Development Fund (KIEDF) to establish a small business loan program.  Loans for up to 5 years and up to NIS 300,000 can be used for  starting a new business or expanding an existing one.

The process begins with a counselor who reviews basic eligibility and  referral to KIEDF. The KIEDF wil provide business consulting services including review, advice guidance, and the preparation of a business plan.  Should the loan be approved, the applicant will be introduced to a bank used by the KIEDF. The bank then needs to approve the loan. 

The Ness Negev Business Loan Fund

Established to assist small businesses in the Negev, with the broader aim of creating jobs and accelerating economic activity in Israel’s southern region. By providing resources for economic development, regional growth, and the creation of critical new jobs, the fund was designed to provide burgeoning entrepreneurs with initial capital and professional mentoring to help them realize their business vision, bringing prosperity and vision to the underdeveloped Israeli Negev.

The Israel Free Loan Association IFLA

The IFLA provides Israel’s struggling working population with interest free loans. The IFLA has had a major impact on keeping low income needy working Israeli families financially independent and off of welfare and away from loan sharks. IFLA loans help all type of people. The loans help financially strapped Israelis get back on their feet, help university students obtain academic degrees, help new immigrants move out of Absorption Centers and into their own homes, allow ailing Israelis to undergo medical treatment, help families with disabled children to purchase specialized medical equipment, as well as enabling small businesses to start or expand, thereby supporting both themselves and others.

Contact the Israel Free Loan Association
Rechov Rivka 29
Jerusalem, Israel
Tel: 02-5300777
Fax: 02-5669504

The Jewish Agency

The Jewish Agency operates a loan fund, with excellent conditions, for creating employment opportunities, impacting Israeli society and stimulating the economy.

Many new immigrants to Israel have entrepreneurial initiative and sound business ideas but lack the collateral needed for bank loans. New immigrants and economically disadvantaged native-born Israelis generally stand little chance of getting financing from banks in Israel.

The Jewish Agency Loan Fund addresses this need and even guarantees part of the financial responsibility in the event of default of repayment.

The first step is to contacting an independent business advisor or your local MATI branch (small and medium business development centers).  You business concept is studied and an application and business plan is submitted to  the Jewish Agency for approval.  If the loan is approved, the Jewish Agency becomes a guarantor for the bank loan for the amount set by the committee.

The Jewish Agency together with the Jewish Federations of North American, operate 7 loan funds around Israel.  Loans, up to NIS 300,00 can be taken and repayment is spread over 6 years


Employment Resources


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