Treasury offers guaranteed loans for war-hit businesses

With a session due to be held today in the Knesset Finance Committee on the aid plan for businesses harmed by the war, and following criticism by private sector organizations of the scope of the government’s response, the Ministry of Finance has announced that, next week, a special track will be opened in the fund for state-guaranteed loans, for small and mid-size businesses.

According to the Ministry of Finance’s announcement, on April 19 the Accountant General’s Department will open a special track for businesses with an annual turnover of up to NIS 25 million. The track will be open for applications until June 30 this year.

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The terms of loans on this track will be an average annual interest rate of prime plus 1.7%, reduced collateral requirements, and an increased guarantee by the state. Borrowers will be allowed to defer repayments for up to six months, of which three months will be a full grace period for both principal and interest, and a further three months deferral of principal repayments only.

Meanwhile, a separate track for businesses in the north continues to operate on yet more favorable terms, such as an interest rate of prime plus 0.25%. The track has been extended to the end of June.

The move follows criticism from business organizations that are demanding that the state should pay the wages of workers placed on unpaid leave from their first day of absence, and not just after five as under the current aid plan.

In advance of the Finance Committee session, Adv. Roee Cohen, president of the self-employed organization Lahav, said, “We are seven weeks since the start of the war, and still not a single shekel in compensation has reached business owners and self-employed people.” Roee said that he intended to demand the establishment of a fixed compensation plan that will come into effect when a state of emergency is declared, as well as greater compensation for small, independent businesses and for sectors that have been particularly hard hit, such as tourism, culture, and events.

Published by Globes, Israel business news – en.globes.co.il – on April 14, 2026.

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