New Support Program: Grants of Up to 5 Million Shekels for Small and Medium Businesses

The Small and Medium Business Agency at the Ministry of Economy and Industry is calling on commercial entities to submit proposals for the development and operation of projects to assist small and medium-sized businesses. As part of the program, the Agency will grant 9 million shekels, via one-time grants or investments, to entities that develop projects to promote the small and medium business sector.

The Agency will support two types of projects:

• Financial projects: Solutions for cash flow and financing for small and medium-sized businesses in Israel. The business model must reflect a reasonable probability of returning the invested funds. Assistance will cover up to 35% of the project budget, up to a total of 5 million shekels.

• Business projects: Solutions to improve and promote business activity. Assistance will cover up to 35% of the project budget, up to a total of half a million shekels.

Applications will be evaluated based on the applicant's experience, the feasibility and quality of the business plan, the project's economic potential, the Agency's participation rate, and the level of leverage. Financial projects involving investments expected to return to the state will receive additional points. Details for submissions, open until August 25, 2026, are available on the Agency's website.

Yossi Adas, Director of the Financing Department, noted that in 2025, the Agency's 12 million shekels in grants leveraged over 100 million shekels for the benefit of small and medium businesses. "This is a unique program that allows for the development of new financing tools. We help financing bodies raise initial capital, which then reaches businesses in need of credit," he stated.

In the previous round, winners included financial projects Bizi Finance, Ogen, Corez Tech, Finster, and Kerenot Koreth, as well as business projects AI Optimize and Invori Finance.

Ran Yehezkel, Director of the Business and Employment System at the Ministry of Economy and Industry, commented: "We are leveraging government budgets to support private initiatives that help small and medium businesses face their challenges." Itzik Kasner, Director of the Small and Medium Business Agency, added that the program is crucial for expanding credit sources adapted to the specific needs of the sector.