The Ministry of Immigrant Absorption offers a loan fund to immigrant entrepreneurs interested in opening or advancing their own business.
To receive a loan, interested parties should contact one of the MATI Centers. A MATI counselor will examine the feasibility of the business and accordingly prepare a business plan.
The aim of the business plan is to assist the entrepreneur in planning and running his business or defining the needs of the emerging business.
Loan amounts and terms*
- Maximum Loan Sum: NIS 100,000
- Minimum Equity Capital: 25% of the loan
- Conditional Grant: 17.5% of the total sum of the loan and no more than NIS 5,000 (standing loan becomes a grant after 3 years).
- Interest: Index-linked + 2% interest
- Payment period: 6 years (one year grace)
The standing loan will become a grant after 3 years of receiving the loan, provided that the immigrant continues to support himself from the business.
The loan is for a period of up to 6 years, of which one year is a year of grace (repayment of the interest only).
- Securities: usually 3 guarantors.
- The loans are given through Bank Hapoalim.
*Subject to possible changes, as well as all the figures, terms and conditions quoted on this page.
Criteria for receiving a loan
- Immigrants, returning residents, returning minors and children of immigrants during their period of eligibility.
- Children of immigrants will be eligible for assistance from the Fund as any other immigrant on condition that their parents sign a letter certifying their waving of rights to a loan. Without such a letter, the children are entitled to 50% of the loan.
- The entrepreneur or his/her spouse has not received a loan from the Fund in the past.
- The entrepreneur has suitable professional abilities to run a business, including a professional license when required. (Relevant professional documentation must be attached to the request).
- The entrepreneur must invest private capital in the business according to the criteria in the Table of Loan Amounts and Terms.
- The business plan presents personal ability and financial reasonability for the success of the business.
- The business plan ensures the ability to repay the loan in the future.
- The loan funds will be used only for the uses stated in the business plan or according to the approval of the Fund committee.
- The loan is dependent on the approval of the relevant authorities.
- The business will be the main source of income for the entrepreneur and he will himself work in the business.
Period of eligibility
- Immigrants who received immigrant status up to 10 years ago.
- For Ethiopian immigrants, up to 15 years since the day they received immigrant status.
- Returning residents: Two years from the date of receipt of returning resident status.
- Assistance is given on a one-time basis.
Appeals on committee decisions
An entrepreneur whose request was rejected may appeal to the Fund’s appeals committee via the district entrepreneurship counselor.
Loan approval process
- The counselor transfers the business plan and his recommendations to the committee of the Fund for the Self-Employed Immigrant.
- The committee examines various aspects of the business as well as the entrepreneur’s capabilities to run it.
- The committee determines which guarantees and securities are required by the entrepreneur.
- The entrepreneur is referred to one of the banks that deal with the Ministry of Immigrant Absorption in order to realize the loan.
- The entrepreneur must present guarantees and securities as required by the committee.
Regional Bureaus of the Ministry of Immigrant Absorption
6, Esther Hamalka St.
15 A, Pal Yam St.
31, Shazar St.