Finance Ministry Launches Emergency Loan Fund to Safeguard Small and Medium Businesses From Economic Fallout

Israel's Finance Ministry launches an emergency fund for small and medium businesses, offering state-guaranteed loans and 6-month payment deferrals amid the war with Iran.

By: AXL Media

Published: Apr 14, 2026, 8:03 AM EDT

Source: Information for this report was sourced from The Jerusalem Post

Emergency Liquidity for the Business Sector

In a direct response to the mounting fiscal pressures caused by the conflict with Iran, the Finance Ministry announced a comprehensive relief package on Tuesday. The initiative is designed to provide a financial cushion for small and medium-sized enterprises (SMEs) struggling with cash flow disruptions and operational constraints. Finance Minister Bezalel Smotrich, speaking shortly after the 2026 state budget vote, emphasized that the economy’s resilience depends on the continued activity of self-employed individuals and private business owners. The new measures are intended to expand the existing "safety net" deployed since the start of hostilities.

Tailored Relief for Diverse Business Tiers

The relief package is structured to address the specific needs of different business categories:

Small Businesses (Turnover up to 25 million NIS): Eligible for a specialized loan fund featuring a prime rate of 1.7%. These loans come with significantly reduced collateral requirements and an increased state guarantee. Crucially, these businesses are granted a total payment deferral of six months.

Medium Businesses (Turnover 25 million to 100 million NIS): These entities will receive a six-month payment deferral within existing state-guaranteed loan tracks. This includes a full three-month grace period on all payments and a reduction in the collateral required by credit providers.