How Blended Finance and Local Partnerships Rebuild Israel’s Economic Resilience

When missiles fall, the destruction is immediate, but the economic shockwaves last far longer. The recent 12-day war with Iran serves as a reminder that while the state manages national security, the burden of economic recovery often falls on local municipalities.

We do not wait for systems to catch up. In times of crisis, people need solutions that meet them where they are. It is vital to build financial models that enable local response, preserving the individual with dignity as they recover. But national resilience is a collective response, and financial security is the foundation in rebuilding homes, businesses and our country. In cities like Be’er Sheva, Tamra and Haifa, vulnerable and often overlooked communities where Iranian missile attacks destroyed both physical infrastructure and livelihoods, local authorities face an overwhelming task: support displaced families, stabilize small businesses, and restore basic services, often without the financial tools to do so effectively.

The war exposed a critical gap in Israel’s local response systems: municipalities lack the financial infrastructure to address the scale of urgent economic and emotional needs. Recovery efforts require more than emergency aid—they demand coordinated, long-term tools that can be deployed quickly at the local level.

Ogen’s Israel’s Financial First Responders program, backed by an initial NIS 100 million fund, was created to meet that need. Through municipal recovery kits delivered to the hardest-hit cities, the program offers interest-free loans for families and small businesses, credit lines for nonprofits, and access to wraparound support services—legal and welfare guidance, employment counseling, and emotional assistance. Ogen’s decades of experience in financial inclusion and our financial crisis management plans, enable municipal authorities to coordinate aid, fast and dignified, with immediate and long-term solutions. 

This is not a theoretical model. Our teams are on the ground, working hand-in-hand with local governments. Within hours of the deadly and destructive attacks on Tamra, Ogen set up an emergency hub to support the needs of the families and small businesses most affected. In Haifa, Israel’s third-largest city, we partnered with municipal leaders to deliver an urgent response to widespread displacement and the devastation spanning entire city blocks. In every case, our goal is to act as a financial bridge, filling the space between what the state can provide and what residents urgently need.

This model only works because of blended finance. Philanthropic contributions fuel our ability to act quickly and reach underserved communities, while also unlocking additional impact capital. For every shekel we raise, we mobilize several more in subsidized loans, and directly provide interest-free loans where needed. This is a high-leverage approach to relief, ensuring that donor funds are amplified, not depleted.

We are currently raising NIS 67.4 million ($20.2M) in philanthropic support to unlock over NIS 193.7 million ($58M) in credit. This enables us to support 1,380 families and 650 small businesses, while also providing mentoring to 260 businesses and financial counseling to 500 families. These aren’t one-time interventions—they are steps toward long-term financial stability.

The goal is straightforward: to bridge the gap between the state and its citizens, and between philanthropic funds and those in need, and to provide financial solutions that address the actual needs of Israelis in need.

This is not charity. It is national infrastructure delivered at the local level, and it is already making the difference between collapse and recovery.