The new fund for loans to small businesses will begin operations in the next few days after the Knesset Finance Committee approved the transfer of NIS30m from budget reserves to the fund.
The fund was established by the finance and trade ministers on the recommendation of Customs and VAT division director, Eitan Rub. Finance Minister Benjamin Netanyahu asked Rub to examine options for assisting small businesses.
Rub said criteria for receipt of loans are based on economic justification - the businesses' ability to contribute to investment, growth and employment.
Likud MK Ruhama Avraham noted the new fund will allow businesses preferential credit terms and help them to recover from the severe recession and the security situation.
Bank Otsar Ha-hayal, which operates the fund, has committed to injecting NIS5 for every shekel given by the state; thus, the new fund will total NIS250m, compared to the previous small businesses assistance fund of NIS100m...
