The state-guarantee fund for Businesses

BDSK has been operating the state-guarantee loan fund for the last six years and serves as the
only coordinating body on behalf of the Ministry of Finance.
Over a decade ago Israel established state-guarantee loan funds for the purpose of enabling
credit access to those businesses that serve as the economy’s main source of growth.
Over the years, the state-guarantee loan fund has assisted tens of thousands of businesses to
grow and develop in an accumulative scope of billions of NIS.
This growth has also contributed to the economy by creating jobs and motivating Israel’s main
fields of growth.
The loan is provided by the bank under state-guarantee based on recommendation of the
coordinating body – BDSK and the decision of the credit committee.
The coordinating body includes numerous economists spread out across the country, with the
goal of providing swift and professional service nation-wide.
For Further Information:
Browse the coordinating body’s dedicated website- https://keren.bdsk.co.il/
Phone 03-7255555 ; or Email: esek@bdsk.co.il

Loan Options

Industry Investment Option

Maximum loan sum
the lower between 90% of the required investment sum and 15% of the annual turnover.
Maximum deposit
Specific attachment of collateral on the asset. As long as the loan is not for purchase of the asset– up to 30% of the loan sum.

Industry Investment Option

Maximum loan period
up to 12 years
Delayed payment of the loan principal
up to 6 months
Additional comments
A business in the field of industry with at least 3 or more years of experienced operation.

Agriculture Option

Maximum loan sum
up to 750,000 NIS
Maximum deposit
up to 10% of the loan sum
Maximum loan period
up to 10 years

Agriculture Option

Delayed payment of the loan principal
up to 6 months
Additional comments
farmers in the growing sector with an annual turnover of up to 5 million NIS, subject to the provision of a memo regarding insurance covering natural disaster.

Exports Option

Maximum loan sum
up to 12% of the annual turnover
Maximum deposit
up to 25% of the loan sum
Maximum loan period
up to 5 years

Exports Option

Delayed payment of the loan principal
up to 6 months
Additional comments
The definition of export is export in the scope of $250 thousand for the year prior to requesting the loan.

Return on Working Capital Option

Maximum loan sum
up to 500,000 NIS or 8% of the annual turnover – the higher of the two
Maximum deposit
up to 25% of the loan sum
Maximum loan period
up to 5 years

Return on Working Capital Option

Delayed payment of the loan principal
up to 6 months

Business in Stage of Establishment Option

Maximum loan sum
up to 500 thousand NIS
Maximum deposit
up to 10% of a loan of up to 300,000 NIS and 25% of any additional sum.
Maximum loan period
up to 5 years

Business in Stage of Establishment Option

Delayed payment of the loan principal
up to 6 months
לTo whom does this option apply?
- A business not yet in operation
- A business thus far considered an exempt employer and is planning a significant investment, which as a result will change its status to a licensed business or a proprietary limited company.
- A business that thus far has not made use a line of credit at all, provided its cumulative turnover does not exceed 500,000 NIS from the date of establishment.
- A business owner who thus far has been operating out of a residential space and has decided to relocate the business to a dedicated location and provided its cumulative turnover does not exceed 500,000 NIS from the date of establishment.
- An entrepreneur, who acquires an active business, can receive a loan of up to 35% of the business acquisition price. The guarantee rates on a loan for business acquisition are similar to those of the Industry Investment Option.

Combined Option

Bridging cash flow gaps and investment in the business

Maximum loan sum
up to 500 thousand NIS or 8% of the annual turnover – the higher of the two
Maximum deposit
up to 25% of the loan sum

Combined Option

Maximum loan period
up to 5 years
Delayed payment of the loan principal
up to 6 months

COVID-19 Impact Option

Following COVID-19 outbreak, it was decided to establish a special loan option dedicated to assist small to medium-size businesses that suffered cash flow issues due to the pandemic. This option is designed to provide loans for financing return on working capital for businesses that can present a connection between the cash flow difficulties and the business’s needs for working capital and the pandemic outbreak.

For more information and online request submission, use the Ministry of Finance website >

Prerequisites for receiving a loan through the fund:

The fund addresses businesses with an annual income turnover of up to 100 million NIS.
The business has no unresolved debt to the Israeli tax authorities
The business’s accounts and/or private accounts of any of the shareholders are not restricted and/or foreclosed nor are they intended to be restricted.
No bank is taking any legal action against the business and/or its owners, including actions by the execution office.
The business is not currently involved in procedures of receivership and/or dismantling and/or freezing of procedures and/or a creditors arrangement and does not have any execution office actions against it.
The business does not have debt that has been defined as a faulted debt in its existing bank accounts.
The business does not have a loan through the Independent Immigrant Fund, which was provided in 2012 onwards or from the Exporters Fund and even if this was given by another bank.
For Associations: in the event a restricted account exists for any signatories of the Association or any of its members, it shall be perceived as an Association that does not qualify under the fund’s prerequisites.