Loan for Establishing and Developing a Business
Loan for establishing a first private business or sustaining an existing business
What can you receive?
You should know- The assistance is one-time and intended for those who have not previously received support for funding education or other vocational rehabilitation.
- The assistance will be provided proportionally to your share in the business. For example: In case of a partnership, if your share in the business is 50%, you will be eligible to receive 50% of the loan amount.
Bereaved parents and widows experiencing a second lossEligible for 200% assistance.
You can choose to take one loan at 200% or two separate loans at 100% each.
How to apply?
Step one: Submit an application at your district
Please submit through your account:
Detailed business plan, including:
- Comprehensive description of the business.
- Feasibility study.
- Details of required investments.
- Income and expense forecast.
Submit the relevant form for you
Form of approval for transferring personal details to the International Bank for bereaved parents - in the case of a couple, both parents must sign the form.
Form of approval for transferring personal details to the International Bank for widows
Form of approval for transferring personal details to the International Bank for orphans
Letter of application.
Step two: Review of the application
The district will review the application based on the following criteria:
Suitability of the business to your education and professional experience.
Economic feasibility of the business plan.
If necessary, we may request additional documents to review the application.
In case the district decides to reject the application, an appeal can be submitted to the supreme appeals committee.
Step three: Loan utilization
The application will be reviewed, and the district will respond within 21 business days from the receipt of all required documents.
After receiving approval from the district, your details will be forwarded to the bank. After receiving the details, the bank will send you a notification that you can receive the loan at any branch of the First International Bank of Israel, at your choice.
The referral for the approved loan will be valid for 4 months only, and the loan must be utilized at the bank before its expiration.
The bank will notify you via SMS when the loan is transferred to your account. From this point, the loan repayment amount will be deducted monthly from your benefits.
Loan guarantee
In some cases, it is necessary to present guarantors to the bank for the loan. The guarantors will commit to repaying the loan to the bank if you are unable to pay.
The guarantors can sign the guarantee at any of the bank's branches, not just the branch where you chose to apply for the loan.
Modification or cancellation of the loan
If you need to cancel an approved loan, or shorten or extend the repayment term, please inform the welfare worker.
For your attention- The loan is provided at a fixed interest rate (not indexed). The interest rate changes every 5 years. The loan interest rates are determined by the Accountant General and updated quarterly.
- In most cases, the loan repayment is spread out over 24 months. If there is a need to arrange the payments differently, you can request it from the welfare worker.
- The loan terms offered by the department may not differ significantly from those offered by other banks, so it is advisable to check and compare the terms before taking the loan.
