A newly launched platform is the first to offer interest-free peer-to-peer loans to small businesses in Israel.
SparkIL was created in partnership with the Jewish Agency for Israel and the Ogen Group with the goal of helping individuals support the small business of their choice in Israel, while building ties and meaningful relationships between lenders and Israel. .
Users can participate in crowdfunding campaigns offering interest-free loans to businesses that meet SparkIL’s criteria.
The platform’s funding opportunities are categorized by “people, places, and purposes,” allowing users to choose from businesses represented by specific demographic communities, locations, or socio-economic causes.
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After loan repayment, lenders can choose to withdraw their funds from the platform or reinvest them in other businesses. When the borrower’s funding goal is reached, the entire loan is released.
“SparkIL presents a unique opportunity to engage global Jewry with the ability to directly impact Israeli society at the ground level,” said Na’ama Ore, CEO of SparkIL.
“At a time when we are seeing increased disengagement with Israel, this digital platform could serve as a much-needed bridge connecting lenders to the entrepreneurs and businesses that need their help the most.”
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The platform said the move to offer interest-free loans represents the actualization of Jewish tradition and values, noting that Torah scholar Maimonides said the highest form of giving is when a donor or lender enables the recipient to become self-sufficient – a directive generally defined as giving a business loan or helping someone find a job.
“Rooted in a sense of mutual responsibility, this is a win-win proposition – for lenders looking to put their values into action and for companies with pressing capital needs. SparkIL is poised to contribute to the goal of ensuring a vibrant Jewish future for generations to come,” added Amira Ahronoviz, Chief Executive Officer and Managing Director of the Jewish Agency. Ahronoviz is also Chairman of the Board of SparkIL.
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