According to the Calcalist publication, the new fund will, in the first stage, provide a guarantee for a total of approximately NIS 6.5 billion. In the future, it is estimated that the state will increase the fund if necessary. In addition to this, the new fund will allow the credit provider to secure customers to the extent of a maximum of 15% of the total loan. Also, the Accountant General of the Treasury intends to provide financial incentives to credit providers who will give small businesses credit on better and more convenient terms.
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Senior Deputy Accountant General Gil Cohen stated that “the fund helps small businesses deal with cash flow needs, invest and develop and at the same time will lead to a significant improvement in competition in the credit market. This is because for the first time it allows credit card companies, non-bank credit providers and P2P credit companies to join the fund and offer State guaranteed loans”.