The Israeli social lender Ogen has launched a new no- and low-interest loan fund for Israeli families and small businesses affected by the Israel-Iran war, offering nearly $30 million in support with the hopes of doubling that soon, the group told eJewishPhilanthropy.

“The economic fallout from Operation Rising Lion comes after nearly two years of hardship for families and small business owners, many of whom are also reservists, and now threatens their financial stability,” Ogen CEO Sagi Balasha said in a statement. “This program is designed to help them survive this critical period and continue contributing to Israel’s economy.”

With the outbreak of the conflict earlier this month, Ogen sent representatives to cities and towns in Israel that were hit by Iranian missiles, anticipating that residents would require financial support. This included an Arabic-speaking representative to the northern village of Tamra, were four members of the same family were killed in an Iraniain missile strike on June 14.

Ogen, which recently saw its bond credit rating improve, has provided nearly $150 million in no- and low-interest loans to Israeli families, businesses and nonprofits since the Oct. 7 terror attacks. 

According to the social lender, the new emergency assistance program, dubbed “Israel’s Financial First Responders,” will provide more than $25 million in subsidized loans and credit lines for small businesses. They can receive larger loans and credit lines at a reduced interest rate, as well as smaller loans — below $30,000 — without interest through the joint Ogen-Jewish Angency initiative SparkIL. The businesses will also receive three months of financial mentoring. 

Ogen will provide almost $5 million in interest-free loans — each up to $14,700 — for households affected by the war. 

The nonprofit said that it hoped to double the size of the new assistance program by raising a smaller amount of philanthropic funding, which it can then “leverage” to get a large line of credit from a commercial bank. Those philanthropic donations then allow the group to subsidize its loans and to cover the additional risks that it takes on by providing loans to people and businesses who would likely not be able to receive them from traditional lenders. 

“Philanthropy is what powers our ability to move quickly and reach people who can’t afford to wait. Thanks to our blended financial model, every contribution goes further, unlocking significantly more in loan capital and allowing us to provide real, immediate support where it’s needed most,” Eldan Kaye, Ogen’s vice president of development and partnerships, said in a statement.