Help small Israeli businesses struggling to survive the economic fallout from the war

Restaurants, arts centers, hotels, and other small businesses help make Israeli life and cultural fabric unique in the world.​ Small businesses—98% of which are under 10 employees—constitute 45% of Israel's workforce. ​Small businesses have faced revenue downturns of over 50% since the outbreak of the war due to related labor shortages and reduced sales activity.​ Unemployment has increased significantly since the outbreak of the way and the Israeli economy faces significant headwinds.

GDP in Q4 2023 plunged at an annualized rate of almost 20%. Sustaining the small business ecosystem is crucial to many in Israel, including reservists who own or are employed by these enterprises.

Catalytic Capital for Israel: The Initiative

Catalytic Capital for Israel (CCI) pools capital from donor-advised funds (DAFs) to invest in Israeli small businesses that have been impacted by the ongoing war. A nationwide initiative in partnership with Jewish Federations of North America (JFNA), CCI aims to raise $10M in loan capital to increase the capacity of Israel’s leading nonprofit social lenders to make affordable loans to struggling small businesses. 

Leveraging an Established Impact Investing Program

Since 2021, the Bay Area Jewish Federation (BAJF) has invested in leading social impact lenders in Israel, including Ogen and KIEDF, through its Impact Lending program. To date, BAJF DAFs have collectively loaned out close to $55M, including $4M in Israel to support small and micro businesses. These loans maximize philanthropic impact while earning concessionary returns, and at the end of the term, the capital is returned to the DAFs to be used again. This capital recycling multiples impact by making the same money available again for future charitable purposes. 

Even before the war, Israeli small business owners and nonprofits were routinely underserved by commercial lenders and government programs that focus on larger businesses. A network of long-standing and new impact focused Israeli social lending platforms offers fair, affordable credit and provides loans on a low-interest, nonprofit basis to help small businesses.

Leveraging BAJF’s robust impact investing program, DAFs can easily make an investment in the CCI small business loan pool and directly support social lenders in Israel that are helping small businesses survive in these difficult times.