Israeli Not-For-Profit Organization Ogen Will Loan $70 Million To Nonprofits Waiting on Government Money
Israel’s lack of conclusive elections and the resultant political limbo are delaying state funds promised to local nonprofit and not-for-profit social organizations
Tzally Greenberg | 13:52 23.01.2020
Israeli not-for-profit organization Ogen-Social Loan Fund is putting up $70 million as bridge loans for non-profit organizations that have yet to receive promised state funds due to Israel’s current political limbo and lack of government, according to Ogen Chairman Ofir Ozeri. Ogen aims to provide low-income people with credit at low interest rates. The sum it is offering now is 10% of the sum the government had previously committed to pay by the end of January 2020, and Ogen will offer the loans with a non-indexed fixed interest rate of 4.5%-5.5% and no demand for deposits or financial securities, according to the organization. According to Ogen’s data, some 36,000 nonprofit and not-for-profit organizations operate in Israel today. Of those, 3,500 provide services to the state, and 8,000 provide services to local municipalities. On Wednesday, many of these organizations banded together to send a letter to the Ministry of Finance, demanding the release of $700 million-worth of promised funding. Those include funds for activities performed in 2019 as well as down payments for 2020. received an expanded credit provider license Israel’s capital market regulator in September.