The Jewish Agency for Israel and Ogen – Social Loan Fund, a not-for-profit lending fund, are launching the Emergency Fund for Nonprofits to assist nonprofit organizations suffering financially from the coronavirus crisis, the organizations said in a press release on Wednesday.
There are around 16,000 nonprofit organizations in Israel. They employ hundreds of thousands of people – accounting for 16% of Israel's labor force – and account for 6% of Israel's GDP.
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Following three national elections and in the absence of a national budget for 2020, the nonprofit sector has been operating under conditions of uncertainty that have affected its ability to provide even basic services. The COVID-19 shutdown has only increased this uncertainty and drops in the stock market are expected to affect the private donors and foundations, upon whom the organizations rely for their fundraising.
Since the beginning of March, tens of thousands of nonprofit organization employees have been laid off. There has been a surge in the number of organizations seeking emergency loans. This includes nonprofits that serve Israel's most vulnerable: At-risk youth, battered women, the elderly, people with disabilities, populations with special needs and more.
The Emergency Fund for Nonprofits program includes provisions for immediate loans at a 3% interest rate, as well as loans of up to 400,000 NIS ($112,000) for up to 60 months, with a six-month grace period. Both with no requirement for guarantors. The loans can be applied for via a simple online process.
In addition, Ogen is also offering bridge loans payable within 12 months, secured against government agreements, grants or other non-government funding commitments.
"The special terms for these loans were made possible by generous support from Bob and Trudy Gottesman, Lillian and Moris Tabacinic, The Jewish Federations of North America (JFNA) and the Federations of New York, Greater Miami, Detroit and Pittsburgh, and by Israeli supporters the Migdal Group, Boaz Raam and Shuki Ehrlich," the Jewish Agency said.
Applications for loans are available via the Ogen website, www.ogen.org. Phone inquiries regarding loans should be made at 02-530-0780.
