A program started by a San Francisco foundation soon will make it possible for struggling small businesses in Israel’s Negev to obtain the loans necessary to bolster their businesses, create jobs and boost the economy.
The venture is made possible from a partnership of the Koret Israel Economic Development Fund, an arm of the San Francisco-based Koret Foundation; Israel’s Bank Leumi; and the Overseas Private Investment Corp., a U.S. governmental agency.
OPIC, which fosters investment overseas and promotes economic development in new and emerging markets, and the Koret fund have provided the funding to guarantee any loan Bank Leumi directs to Israeli entrepreneurs in the Negev.
The collaboration will make available $160 million over seven years for loans ranging from $13,000 to $325,000.
....The fund, which is the largest of its kind in Israel’s history, will enable small-business owners in the Negev to receive loans at a 1.5 percent interest rate. The cooperation among the agencies will allow businesses that meet the criteria to offer up much less equity than is usually demanded when applying for credit.
Most of these businesses otherwise would not be eligible for a loan, Farber said.
“Maybe they have no collateral, they’re too young or they have no track record,” he said.... Full story
Meanwhile, small business bankruptcies rose 81 percent in California
Posts
