The past year has been challenging for almost every business in Israel. Many have closed due to an inability to operate, while others have experienced a significant decline in revenue and severe cash flow difficulties—all under the looming uncertainty that makes planning future steps difficult.
Mercantile Bank has established the Renewal Fund, a unique fund that provides loans to business owners under preferential terms. The loans are available to business owners from across the country, reservists, and other groups in the population who have been defined as eligible according to the guidelines of the Bank of Israel.
As part of the fund, small businesses can receive a loan of up to NIS one million under attractive conditions. The loan repayment period will be personally tailored to each business according to its needs and circumstances, for up to eight years. Additionally, to help businesses navigate the transition back to normal operations, loan repayments can begin approximately nine months after receiving the loan. For example, a customer who takes out a loan in January will start repaying it in October. Loan applications can be submitted digitally via the bank's website, by scanning the QR code appearing in various publications, or by contacting bank representatives. Applications are available to customers of all banks, and to ensure quick processing, the bank has set up a dedicated center that contacts applicants and handles their requests. The application process is expedited, with processing taking up to approximately two weeks.
Vered Avitan, Deputy CEO and Head of the Retail Banking Division at Mercantile Bank, notes that the purpose of the fund is to give business owners time to recover, restart their operations, bring back customers, replenish inventory, resume business activity, and return to normal.
Avitan further states: "Our bankers support business owners at every stage, especially since October 7. In the early days of the conflict, we reached out to all businesses and provided as much support as we could. Now, after more than a year of war, and out of a genuine and deep connection with businesses, we understand that this is the solution they need most."
Gadi Shoval, Head of the Business Funds Department at Mercantile Bank, emphasizes that the loan can help businesses renew their operations. "Historically, after wars, we see a 'business boom,' where there is a surge in economic activity, including the opening of new businesses, existing businesses shifting direction or adapting to the new situation, and accelerated business activity. The bank's 'Renewal Fund' can support businesses going through these processes, providing them with the backing and solutions needed to move forward in a responsible and sustainable way that fosters long-term growth."