Leumi launches NIS 1 billion SME loan fund

Bank Leumi branch picture: Tamar Mitzpi

The state-backed fund will offer NIS 1 billion of loans annually to small and medium businesses.

Bank Leumi launched a fund to offer small and medium enterprises NIS 1 billion in loans, backed by the state, per year. This follows the recent award of Leumi and Menora Mivtachim in a Ministry of Finance tender to operate a new loan fund for at least four years.

Businesses in the initial phase or those with annual revenue up to NIS 6.25 million will be eligible to receive loans of up to NIS 0.5 million. A small business with revenue exceeding NIS 6.25 million or a medium business with revenue up to NIS 25 million will be eligible for a state-backed loan up to 8% of its revenue.

Export businesses will be offered loans up to 12% of their revenue while medium industrial enterprises will receive loans of up to 90% of the total investment and 15% of annual revenue. According to figures from the Ministry of Economy and Industry, 99% of the businesses in Israel are defined as small and medium-sized enterprises and they are responsible for nearly half of commercial products and employ some 45% of workers.

Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Bank Leumi branch picture: Tamar Mitzpi
Bank Leumi branch picture: Tamar Mitzpi
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