Full Breakdown
Financial Relief Initiatives for Small Businesses Amid War with Iran
4/15/2026, 10:14:38 AM
Overview of the Relief Package
In response to the economic challenges posed by the ongoing war with Iran, Israel's Finance Ministry announced a comprehensive relief package aimed at supporting small and medium-sized businesses. This initiative allows businesses with an annual turnover of up to NIS 25 million to access a loan fund with a prime rate of 1.7%, reduced collateral requirements, and a six-month payment deferral. For medium-sized businesses with turnovers between NIS 25 million and NIS 100 million, similar relief measures will apply, including a three-month grace period on payments.
Finance Minister Bezalel Smotrich emphasized the importance of these measures, stating, “We see it as of utmost importance to help business owners cope with this period.” He noted that the economic stability of the country relies heavily on the activity of self-employed individuals and small businesses.
Impact on Small Businesses
The Finance Ministry estimates that the war has resulted in a loss of approximately NIS 4.5 billion per week due to restrictions imposed by the Home Front Command. Michal Abadi Boyanjo, the Accountant General, highlighted the need for financial tools to help businesses navigate cash flow difficulties, asserting that the new relief fund aims to provide certainty and flexibility.
Collaborative Efforts for Economic Stability
In addition to government initiatives, Isracard’s business platform, in partnership with the Jewish Federations of North America, has extended about NIS 135 million in subsidized credit to around 1,500 businesses since early 2025. This funding targets firms adversely affected by the war, preserving approximately 15,000 jobs and supporting over 50,000 Israelis across 100 cities. The loans, which can save businesses up to NIS 24,000 annually in funding costs, are structured to be recycled, allowing repayments to be reinvested into new loans.
Eyal Ben-Haim, Deputy CEO of Isracard, noted that the fund has effectively reached businesses facing significant wartime disruptions, with one-third of the supported entities owned by reservists and another third operating near conflict zones.
Criticism & Opposition
Despite these relief efforts, some critics argue that the measures may not be sufficient to address the broader economic impact of the war. Concerns have been raised regarding the long-term sustainability of such financial support and whether it adequately meets the needs of all affected businesses.
Official Statements & Responses
The Finance Ministry and Isracard have both expressed commitment to adapting their responses to the evolving economic landscape. Smotrich reiterated the government's focus on maintaining business activity and job security during this challenging period.
Verbatim Quotes
- “We see it as of utmost importance to help business owners cope with this period,” — Bezalel Smotrich, Finance Minister
- “The steps we are promoting provide businesses with greater cash flow flexibility and reduce the financial burden in the short term.” — Michal Abadi Boyanjo, Accountant General
- “They presented the figures as evidence that the fund is reaching companies facing some of the heaviest wartime disruption.” — Eyal Ben-Haim, Deputy CEO, Isracard
What's Next
As the situation evolves, both the Finance Ministry and Isracard are expected to continue monitoring the economic impact of the war and may introduce further measures to support small businesses in Israel.
