New immigrant business owners in Israel have raised concerns over the lack of adequate state support during the ongoing conflict, Operation Swords of Iron.
This issue came to the forefront during a committee meeting of the Aliyah, Absorption, and Diaspora Affairs Committee in the Knesset, chaired by MK Oded Forer (Yisrael Beiteinu).
The Fund for Loans to Immigrant Business Owners, of the Aliyah and Integration Ministry, a support system for nearly 40 years, saw a decline in efficiency following its transition to a leveraged fund in 2013. The fund ceased operations in 2019, leaving a void in the financial support network for these entrepreneurs.
The struggle of new immigrants during the war
Forer expressed his concern, stating, "New immigrants received a message from the state that they have no reason to approach Israeli banks,” regarding business loans.
Yelena Mangedyach, representing this group of business owners, highlighted her plight during the conflict. "During the war, business owners have lost their income without the ability to receive information about the compensation they are entitled to," she said, emphasizing the critical need for state assistance.
The challenges are stark for newcomers like Alexey Tsvetkov, owner of a guesthouse in Holon. "Since the war began, all of my income halted, and I failed to receive any financial assistance from the state," Tsvetkov shared, underlining the difficulties faced by new businesses.
Turning to the government for aid
Liza Fedotov, another new immigrant business owner, shared her experience: "We came to Israel without knowledge of how the business market works... We encountered many difficulties and expect the government to assist us in our business integration process."
In response, MK Vladimir Beliak (Yesh Atid) called for a state-guaranteed fund that suits new immigrants' needs. "New immigrants need suitable loans, especially during the war," he emphasized, pointing towards a solution to the ongoing crisis.
Arik Ozen, Ministry of Aliyah and Integration: “We have been instructed to examine the resumption of the fund's activity with government guarantees for loans to new immigrants. The fund's volume in the past was worth about 50 million shekels per year.”