Israel’s current war with Hamas and the intensifying conflict with Iran and its proxies have left families, businesses, and nonprofits in dire need of monetary assistance. Between the mobilization of 360,000 army reservists and the evacuation of 250,000 Israelis from their homes, the prolonged and multifront conflict and the increasing risk of further escalation are significantly impacting Israelis’ daily lives and livelihoods.
To help Israel’s economy and people, Ogen, a leading nonprofit social lending enterprise, has expanded its Swords of Iron Emergency Relief Fund. With a fundraising target of $100 million, the fund aims to provide low-interest loans to those affected by the current conflict. Ogen has already raised $55 million, including a $30 million fund for small business owners who are IDF reservists.
However, with $109.2 million in loan requests, there is still a significant demand for aid. Ogen is determined to raise more funds to make a difference and help over 250,000 Israelis directly and indirectly. The Media Line spoke to the company’s vice president of development and partnerships, Eldan Kaye, and to recipients of the much-needed financial assistance intended to help them get through these times of war.
“The day after October 7, we realized there would be a significant financial, invisible war. We knew that philanthropy, the government, and many people would focus on urgent needs. We also knew that there would be a two-to-three-week lag, and then people would start feeling the financial burden of the scenario,” said Kaye, explaining how the Ogen team started creating its emergency relief fund.
Discussing the challenges involved in the fund’s beginnings, Ogen’s vice president told The Media Line: “It took us time to focus our philanthropic partners and new partners on the financial resilience piece. That was the biggest challenge,” added Kaye.
The company’s second-biggest challenge was ensuring that Ogen was prepared for the highdemand for help.
“Our CEO even calls it a tsunami of demand. We had to build up our infrastructure from an organizational perspective to be able to meet that demand,” noted Kaye.
The third challenge for the Swords of Iron Emergency Relief Fund was ensuring the deployment of the capital to target audiences. The emergency relief fund serves families or individuals, nonprofits, and small businesses. Its financial assistance, guidance, and mentoring components focus on those who have been impacted by the war.
“For families and individuals, we have financial advisors—experts in family economics that can help to build up the capital, work on the income and expenditure,” explained Kaye.
He shared that the team created three lending tracks for families and opened a hotline, enabling people to call any time and receive guidance and mentorship.
“The first track is for people with property damage—up to $15,000. The second is for people who have had a loss of income, people who have been put on leave, or those who had to stay home with kids while their partners were on reserve duty. That is up to $10,000 loans. And the last is for evacuees, regardless of the economic impact,” said Kaye.
Reut, a single mother from Netivot in southern Israel, received assistance from Ogen after her life became uncertain due to the October 7 tragedy.
“We didn’t know if we were returning to work or if it would be another military operation lasting a day, two, or weeks. We didn’t know where we were headed,” she told The Media Line. “After about three weeks, it was decided that we would be put on unpaid leave, so we had no source of income. It had a tough and direct impact on our economic situation, besides the fact that we received no discounts on rent, electricity, water, or anything else,” Reut shared.
She explained that the loan from Ogen’s emergency relief fund kept her afloat, allowing her to manage the ongoing expenses. “It anchored me and gave the assurance that I could stabilize myself financially. Additionally, the fact that the loan repayment only begins after three months provided some relief,” she added.
Since getting a loan, Reut has now finally found a new job after all the difficulties she had to face.
“Finding work right now is incredibly difficult. Many workplaces have undergone cuts due to expenses and lack of compensation. Thankfully, I will start working next month,” Reut said.
Emergency relief fund
Kaye explained that the emergency relief fund’s interest-free loans are supported by a community of donors, including the Jewish Federations of North America and the Jewish Agency for Israel.
According to Kaye, the emergency relief fund also focuses on nonprofits and small businesses, using two lending tracks: interest-free loans for very small nonprofits or micro-businesses, up to around $25,000, and a larger loan fund for larger businesses or nonprofits with subsidized interest rates, up to around $150,000.
The emergency relief fund also provides mentorship for businesses using teams of volunteers.
“We created a mentoring component that paired business owners or CEOs of nonprofits with volunteers that we recruit and train,” Kaye said, further explaining that the Ogen team knows from feedback that the nonprofits who receive monetary assistance feel more adept and able to meet challenges.
However, the rejection rate of the emergency relief fund is higher than usual. “Around 70% of loan applications were rejected because we didn’t think that a loan was right for them at that stage. Normally this number is around 50%,” Kaye admitted.
The decision on whether to approve a loan is made by experienced underwriting departments looking at a business plan and evaluating the situation before the war.
Another loan recipient from the emergency relief fund is Livney’s, a family business that makes homemade spreads.
Founder Ofri Livney told The Media Line that the business, which started accidentally during COVID-19 lockdowns, has since grown quickly.
“Now we have 17 spreads. We sold around 150 pieces daily all around Israel. We had so many plans, and then October 7 arrived,” she said.
After a few days, Livney’s husband Edo, with whom she ran the business, was called up to the army, so she stayed with the business by herself. Then, very quickly, the family saw demand for their product fall to nothing.
“For a month and a half, we had no income. I felt that it was either us going down or else fighting to survive. We decided to fight, and approached Ogen,” Livney shared.
Livney explained that they received both financial help and a business counselor. “We got the air we needed so badly to keep making spreads and paying for the stuff we needed to pay,” she said.
Ever since they received assistance, Livney’s has succeeded in staying above water. The couple has moved the business forward even during the war.
Kaye explained that the challenges for Israeli economics are far from over.
“Nobody knows what will happen in the North, but we believe that at least 70% of 2024 will be an emergency. It will take a couple of years to rebuild the small business community. We also realize that we have a responsibility towards Israel’s economy and Israel’s society,” Kaye added.
Although Ogen has been well supported by philanthropy, the company sees that its needs are growing, and, therefore, so is its need for support, said Kaye.
“The government should not sit idly by but should look at ways of how to make Ogen’s job and that of other social lenders that much easier,” he added.
Despite facing the catastrophe of October 7, Israeli society has remained unwavering, standing strong and resilient in even the darkest of times. The perseverance and courage of single mother and loan recipient Reut exemplify this strength.
“Hamas’ goal on October 7 was to break our spirit, make us surrender, lead us to despair, weaken us, and we need to prove that we are here, standing on our own feet,” she said. “I recommend families not to give up. Seek loans, engage in financial planning, and ask for help from entities that can provide support. It’s not shameful to seek and receive assistance and guidance. We need to remain strong in heart and soul, stay optimistic and joyful,” she concluded.